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oksian1 [2.3K]
3 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]3 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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iren [92.7K]

Answer:

Date         General Journal                             Debit           Credit

Sept 15     Stock dividend                           $2,342,400

                 (1,200,000*8%*24.4)

                         Common Stock dividend distributable    $480,000

                          (1,200,000*8%*5)

                          Paid in capital in excess of par-              $1,862,400

                          Common Stock

Oct 1         No Journal entry

Oct 10       Common Stock dividend             $480,000

                 distributable  

                           Common Stock                                          $480,000

3 0
2 years ago
Food Packaging, Inc., agrees to sell 50,000 6-ounce yogurt containers to Golden Dairy Company. Food can obtain only 20,000 of th
posledela

Answer:

Option C.

Explanation:

From the scenario presented above, Golden is not in any way liable for the inability to supply the total quantity of the 6-ounce yogurt containers, therefore, Golden can choose to reject the delivery of the 8-ounce containers.

Also, Golden can give Food Packaging a reasonable amount of time to enable them replace the containers, of Golden is not in a hurry to begin production and packaging.

5 0
3 years ago
Should all bank trasactions be recorded
NARA [144]

Answer:yes

Explanation:

Yes indeed.

5 0
2 years ago
Customers are more likely to tell their friends about negative experiences with companies than positive ones because:
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There is more drama involved in unmet expectations.

The reason why customers are more likely to tell their friends about negative experiences with companies than positive ones is that humans often remember the hateful things said than the nice things

Also, when customers are satisfied with one's service, they rarely tell others. whereas an unsatisfied customer would tell others about his or her bad experience due to unmet expectations.

Logically, customers would have bigger impressions in their mind when they have bad experiences reason companies work on strengthening and improving their customer experience team.

Learn more at : brainly.com/question/11437477

8 0
2 years ago
On December 15, Jay Cleaning Co. agreed to provide Kay Co. with bimonthly cleaning services for its offices. The services will b
Anna [14]

Answer:

the correct answer is

b. debit to Accounts Receivable for $200.

good luck ❤

3 0
2 years ago
Read 2 more answers
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