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RUDIKE [14]
3 years ago
12

Compare and contrast the potential for a perfectly competitive firm and a monopolistically competitive firm to earn positive eco

nomic profits in the short run versus the long run. Explain your reasoning.
Business
1 answer:
Kazeer [188]3 years ago
3 0

Explanation:

There are no deficits or surpluses in terms of output, no obstacles to the entry or exit of businesses on the market, and the number of customers is so high that it is only the economic demand that decides the value of the products in the market. Thus, the reality is that the market is completely open. All producers earn normal profit and both manufacturers and consumers accept the commodity price.

In comparison, a monopoly market competition can be defined as a business environment where one entity or group of companies dominates the supply market and thus controls output factors. In this case, the monopolist decides the price of the goods on the market, as the competition is always strong. Free entry or departure from companies is not allowed in a monopolistic competitive market.

The short-term and long-term production or profitability are the same in the case of a fully competitive market. Since the production factors are often under control and fully meet the demand and supply of the market. In the shorter term and that in the long run, a perfect competition business will see stable and strong economic growth. In the case of a business or corporation which is fully competitive, there is no distinction between the competitors ' profit margins and all companies have the same rate of profit.

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1. Beginning inventory plus net purchases equals
Morgarella [4.7K]

Answer:

D. cost of goods available for sale.

Explanation:

The cost of goods available for sale, also known as the total inventory, represents the total amount of finished products that a company had in its store for selling. The calculation of costs of goods available for sale involves adding beginning stock to the net purchases.

Beginning inventory is the ending balance in the previous financial period. It is the finished product balance brought forward of the prior period. Net purchases are the purchases adjusted for discounts and purchase returns. The costs of goods available for sale minus ending inventory will equal to the costs of goods sold.

5 0
3 years ago
The multiplier effect of changes in government transfers is: greater than the multiplier effect of a change in government spendi
sergiy2304 [10]

Answer: less than the multiplier effect of a change in government spending.

Explanation:

The multiplier effect of government transfers refers to the measure by which the aggregate demand will increase by as a result of government transfers increasing.

This multiplier is less than the multiplier effect of a change in government spending. This is because government spending affects more people in the economy as it targets both companies and consumers. Government transfers on the other hand, target only welfare and unemployment payments amongst others so it cannot have the same effect as government spending.

5 0
2 years ago
Using the percentage minus−ofminus−sales method, the estimated total uncollectible accounts are​ $6,622. The Allowance for Uncol
Arturiano [62]

Answer:

C. $3,687.

Explanation:

amount of the adjusting entry for Uncollectibleminus−Accounts Expense​

= $6,622 - $2,935

= $3,687

Therefore, The amount of the adjusting entry for Uncollectibleminus−Accounts Expense​ is $3,687.

4 0
3 years ago
The product life cycle is theoretically __________ with regard to sales and profits. Group of answer choices U shaped Y shaped b
m_a_m_a [10]

Answer:

regards

can you please call me when you get a chance

Explanation:

good morning I will be in touch with you doing today I hope you are doing well and that you are you doing today

4 0
2 years ago
A partial listing of costs incurred at archut corporation during september appears below: direct materials $ 113,000 utilities,
Murrr4er [49]

Calculation of Total Manufacturing Overhead Costs:


Manufacturing overhead costs are indirect costs incurred in relation to the production.

From the given information manufacturing overhead costs shall include factory Utilities $5,000, Indirect labor $ 25,000, depreciation of production equipment $ 20,000


Hence the Total Manufacturing Overhead Costs shall be (5000+25000+20000)=<u>$50,000</u>




5 0
3 years ago
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