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oksian1 [2.3K]
4 years ago
15

A monopolistically competitive firm is currently charging a price of $10 and producing 12,000 units/month. It faces monthly fixe

d costs of $15,000 and has an average variable cost of $6/unit. In the long run, we would expect:a. ​The firm to go out of businessb. ​The price will fall and output will fallc. ​The price will rise and output will falld. ​The price will fall and output will rise
Business
1 answer:
Ipatiy [6.2K]4 years ago
4 0

Answer:

The correct answer is option d.

Explanation:

A monopolistic firm is producing 12000 units at a price of $10 per units.

The average variable cost per unit is $6/unit.

The fixed costs are $15,000.

The average fixed costs will be

=\frac{TFC}{Q}

=\frac{15,000}{12,000}

=1.25

The average total cost is

=average fixed cost+average variable cost

=$(6+1.25) per unit

=$7.25 per unit

Here, the price per unit is greater than average total cost per unit. This means that the firm is having supernormal profits. This will attract other firms to join the market.

In the long run, when new firms enter the market, the market supply will increase leading to a fall in price.

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Diversified Industries is a multi-product firm operating in a number of industries. Assume the firm is analyzing a new project t
KatRina [158]

Answer: a rate commensurate with the risk level of the project.

Explanation:

When computing the net present value of the new project, we should note that the cash flows should be discounted using a rate that is commensurate with the risk level of the project.

Since it is a new project and it possesses risks that are unrelated to those of the current firm's product, the risk that pertains to the project level should be used in the discounting to get the net present value.

3 0
3 years ago
Thompson company updates its inventory records perpetually. the company's records showed a beginning inventory of $600, cost of
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The total inventory can be calculated by adding the initial or beginning inventory which is equal to $600 and the cost of goods sold, $1,400. That is,
     
    T = $600 + $1,400 
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Then, we subtract the ending inventory of $800 from the calculated value.

    S = $2,000 - $800
    S = $1,200

Hence, the answer to this item is the first choice. 
7 0
3 years ago
Construct a decision-making grid that analyzes the potential choices of attending basketball practice and working at an after-sc
lidiya [134]

Answer:

A decision-making grid helps you to analyze what you gain and what you lose whenever you make choices. Refer to the following decision grade that analyzes the potential choices of attending basketball practice and working at an after-school job.

Explanation:

Decision-making grid:

Before constructing a decision-making grid, lets assume that the Mr. A chose to work an after-school job, so the benefits are associated with his choice whereas the opportunity cost represents the choice he could have chose i.e. attending basketball practice

Choice                       Benefits                                      Opportunity Cost

One hour at Job        Afford to pay his tuition fees     Learn a new skill    

Two hours at Job      Afford a gaming console      Able to achieve req.fitness  

Three hours at Job    Afford to buy bike                 Make to the team's bench

Four hours at Job      Afford a good college          Make to the starting lineup

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8 0
3 years ago
Assume that England and Spain each has 40 labor hours available. Originally, each country divided its time equally between the p
Law Incorporation [45]

Answer: a. 15

Explanation:

Given;

Labour hours available to each nations.

England = 40 labour hours.

Spain = 40 labour hours.

Solution:

Total production of bread in 40 labour hours for each nation from the table is 15.

England = 10

Spain = 5

Since both nations decided to focus on their strength where they pose comparative advantage, the production of cheese would increase by 15. As this is the amount of bread produced in that time frame of 40 labour hours.

3 0
4 years ago
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kolbaska11 [484]

Answer:

team interviews.

Explanation:

According to my research on different business strategies, I can say that based on the information provided within the question  In this case, it would be wise to use team interviews. By using this technique for interviewing candidates, every section boss can get to know the candidate and decide in which section of the organization they would best fit in.

I hope this answered your question. If you have any more questions feel free to ask away at Brainly.

4 0
4 years ago
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