Answer:
attract other firms to enter the industry, causing the existing firms' profits to shrink.
Explanation:
Monopolistic competition can be defined as an imperfect competition where many producers or organizations sell differentiated products that are not perfect substitutes. Examples of firms or organizations engaging in a monopolistic competition are restaurants, shoes, clothing lines etc.
Generally, a monopolistic competitive market is characterized by the presence of large numbers of firm (producers) and a very low entry barrier.
Hence, in a monopolistic competition, firms have a degree of control over price, make independent decisions and can freely enter or exit the market in the long-run. Therefore, these firms combine elements of both monopoly and competition.
When a monopolistically competitive firm is in long-run equilibrium marginal revenue is equal to marginal cost (MR = MC) . This ultimately implies that in the long-run, firms engaging in monopolistic competitive market are often going to manufacture the quantity of goods where the marginal cost (MC) curve intersect with the marginal revenue (MR). Also, the price set would be greater than the minimum average total cost (ATC).
Hence, assuming that in a monopolistically competitive industry, firms are earning economic profit. This situation will attract other firms to enter the industry, causing the existing firms' profits to shrink.
4 apples and 7 bananas
4 x 0.7 = 2.8
7 x 0.5 = 3.5
2.8 + 3.5 = $6.30
Answer:
The more slowly the economy adjusts, the more likely it is that stabilization policy will be useful.
Explanation: Self correcting tendency is a term used to describe the various processes and steps which an economy undergoes as it adjusts itself in order to ensure to start a growth trajectory or sustain a growth path.
The slower the process the better for the economy, as the stabilization process Continue gradually,it will be easy for it to stabilise that growth path and improve along with little adverse impacts of Economic threats.
Answer:
2
Explanation:
one half step from e flat is e natural, therefore two half steps are e sharp
