Answer:
a higher price and produce a smaller output than a competitive firm
Explanation:
A monpolistically competitive firm is a firm that :
1. Sells differentiated products from other firms in the industry.
2. Has many buyers and sellers
3. Is a price maker
4. Has no barrier to entry or exist of firms
An example of a monpolistically competitive firm is a resturant.
A competitive firm is a firm that:
1. Sells identical goods with other firms in the industry.
2. Is a price taker . Prices are set by forces of demand and supply
3. Has many buyers and sellers
4. There are no barriers to entry or exist of firms.
When a monopolistic and competition firm are faced with the same unit cost, a monopolistic firm would aim to earn profit by increasing its price and reducing the quantity produced.
While a perfect competition would sell at the price set by the forces of demand and supply. The firm can increase the quantity produced in order to increase revenue.
A monopolistic firm is able to charge a higher price for its products while a perfect competition isn't.
Answer:
a. budget constraint intersects the vertical axis at 25 beers.
Explanation:
A budget constraint shows all the combinations that a consumer might purchase of two given products or services. The total consumption can be represented by a consumption possibilities frontier curve:
- originally you could purchase 50 beers or 5 hot wings
- then as the price of beer increases to $2, you can only buy 25 beers or 5 hot wings
The answer is a loan agreement because you agreed to by the car
Answer:this is the correct answer
Explanation:
Answer:
From year one to year two, there is (Deflation,Inflation) at an annual rate of _12.5____%. In year one, $40.00 will buy ____5____ baskets, and in year two, $40.00 will buy ___5.7 (6)____ baskets. This example illustrates that, as the price level falls, the value of money:_increases___
Explanation:
a) Data and Calculations:
The price of a basket of goods in year one = $8.00
The price of the same basket of goods in year two = $7.00
Difference in price (reduction in price) = $1 ($8 - $7)
Percentage reduction in price = $1/$8 * 100 = 12.5%
With $40/8, 5 baskets were bought
With $40/7, 5.7 baskets will be bought
b) Economists are always wary of prolonged deflation or continuous general falling prices of goods because it depicts an economy that is seriously weakening at its foundation. As a fallout, companies slow production, reduce output, lay off workers, and reduce salaries (earned income).
