1answer.
Ask question
Login Signup
Ask question
All categories
  • English
  • Mathematics
  • Social Studies
  • Business
  • History
  • Health
  • Geography
  • Biology
  • Physics
  • Chemistry
  • Computers and Technology
  • Arts
  • World Languages
  • Spanish
  • French
  • German
  • Advanced Placement (AP)
  • SAT
  • Medicine
  • Law
  • Engineering
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.

You might be interested in
According to the expenditure approach, if Y is GDP, C is consumption, I is investment, G is government purchases, and NX is net
lidiya [134]

Answer:

The answer is Y = C + I + G + NX

Explanation:

National income can be represented as: Y = C + I + G + NX

where Y is the national income

C is the consumers' consumption or households' expenses on goods and services

I is the firms' investment. Investment done by businesses on procuring non-current assets used in production

G is the government expenditure.

NX is the net export. Net export is the difference between the total value of export and total value of import in a year.

6 0
3 years ago
What analysis feature of a decision support system (DSS) pinpoints the region that generated the highest total sales
DedPeter [7]

Answer:

exception reporting

Explanation:

A decision support system (DSS) can be regarded as a computerized program that is utilized in supporting determinations as well as judgments, and courses of action s regards a

an organization or a business.

An exception reporting can be regarded as process of using document which states out the instances whereby actual performance is been deviated from expectations in a significantly manner, this is usually in a negative direction. The main reason for this report is to align the attention of management on areas that requires immediate action.

It should be noted that the analysis feature of a decision support system (DSS) pinpoints the region that generated the highest total sales is exception reporting.

6 0
2 years ago
On December 31, 2018, the balance in Megan's Products Accounts Receivable was $680,000 and net credit sales amounted to $3,800,0
Andru [333]

Answer and Explanation:

The Journal entry is shown below:-

a. Bad Debt Expense Dr, $36,800            ($40,000 – $3,200)

                    To Allowance for Doubtful Accounts $36,800

(Being the bad debt expense is recorded)

For recording this we debited the bad debt expense as it increased the expenses and at the same time it reduced the assets so the allowance for doubtful accounts is credited

b. Bad Debt Expense Dr, $40,730          ($40,000 + $730)

     To Allowance for Doubtful Accounts $40,730

For recording this we debited the bad debt expense as it increased the expenses and at the same time it reduced the assets so the allowance for doubtful accounts is credited

7 0
3 years ago
When you delete an e-mail in Gmail, where is it moved to?
antoniya [11.8K]
It is added to your trash


6 0
3 years ago
Read 2 more answers
A professor surveys her class about whether the number of breaks is adequate for the three-hour course. for her survey, she assi
Rom4ik [11]
<span>Her survey will be both a representative and a random sample. The sample is random since the students are randomly chosen by the professor's computer program and each student has an equal chance of being chosen. The survey is representative since the student chosen will represent the whole class.</span>
8 0
3 years ago
Other questions:
  • Green hybrid auto corporation pays its executives an excessive amount relative to what lower-level employees at the company rece
    15·1 answer
  • You are a project consultant for the ACME Company and are helping to develop an agile method using Scrum. The company has always
    7·1 answer
  • Eric Company has the following information:
    13·1 answer
  • The answer for number 1, and 2 please
    15·2 answers
  • What is another term for the buying and selling of stocks?
    11·1 answer
  • West Corp. issued 15-year bonds two years ago at a coupon rate of 7.3 percent. The bonds make semiannual payments. If these bond
    9·1 answer
  • 12. What is OSHA's purpose?
    14·1 answer
  • select all of the statements that discuss one of the problems with price gouging laws that prevent prices from rising to the new
    11·1 answer
  • Which of these is a reason a closed culture is
    14·1 answer
  • All of the following are methods of evaluating the risk of a project except multiple choice the net present value profile a mont
    7·1 answer
Add answer
Login
Not registered? Fast signup
Signup
Login Signup
Ask question!