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stellarik [79]
4 years ago
5

If monopolistic competitors must expect a process of entry and exit like perfectly competitive firms, Group of answer choices

Business
2 answers:
Colt1911 [192]4 years ago
6 0

Answer:

D. they will be unable to earn higher-than-normal profits in the long run.

Explanation: A monopolistic competition is a form of imperfect Competition where many firms that are located within a give market are known to offer similar products to the markets that are not enough to qualify them as a perfect close Substitute (the Purchase of one of the close Substitute does not necessarily prevent the purchase of another). in this type of imperfect Competition the possibility of a barrier to entry or exit is generally low.

melamori03 [73]4 years ago
6 0

Answer:

D. They will be unable to earn higher than normal profits in the long run.

Explanation:

To begin, it is important to understand the concept of monopolistic market. Monopolistic market is premised on the idea that only one firm is providing a particular goods and services in the market. With this, the monopolistic firm simply call shots as prices, demand and supply, profits earned are determined by their actions and inactions.

Thus, from the scenario, we are told there would be free entry and exit into the industry - a reminiscent of those found in the perfectly competitive market.

The implication of the foregoing is that, by allowing the above just as it is obtainable in a perfectly competitive market, we've diluted the monopolistic nature of the firm. The firm therefore will not be the only one to dictate the price and earn an unwholesome profit.

From the option enlisted, option D aptly captures the turn of the market and the attending experience of the firm.

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If you help with my question i will get you brainlist
kifflom [539]
ok what’s the question tho
7 0
3 years ago
Read 2 more answers
cenario: TeleToys Inc. TeleToys Inc., a U.S.-based company, recently opened eighteen new toy stores in Brazil, acquired a women'
CaHeK987 [17]

Answer:

Retrenchment strategy

Explanation:

Retrenchment strategy is often used in order to cut expenses with the goal of becoming a more financial stable business. A company that is reducing the scope of its activities by selling unprofitable business units or those no longer directly related to its overall aims is likely following a retrenchment strategy

The following are characteristics of Retrenchment strategy:

- designed to reduce the scale or scope of a corporation's business/ operations

- weaker competitors often resort to retrenchment when national business environments grow more competitive

- company that is closing factories with unused capacity and laying off worker sis likely following a retrenchment strategy

4 0
3 years ago
Free cash flows are a. dividends that have been distributed to shareholders that are taxed as capital gains. b. liquid financial
ch4aika [34]

Answer:

The correct answer is d. liquid financial assets that for tax purposes must be reinvested in the firm if not distributed as dividends to shareholders.

Explanation:

One of the variables that best measure a company's financial capacity is free cash flow (FCF). It consists of the amount of money available to cover debt or distribute dividends, once payment to suppliers and purchases of fixed assets (construction, machinery ...) have been deducted.

In general, this calculation serves to measure the ability of a business to generate cash regardless of its financial structure. That is, the FCF is the cash flow generated by the company that is available to meet payments to its financing providers.

In short, the FCF is the balance of treasury that is free in the company, that is, the money available once the mandatory payments have been met. Normally, the FCF is used to remunerate shareholders via dividends or to amortize the principal of the debt and meet interest.

3 0
3 years ago
Bosio Inc.'s perpetual preferred stock sells for $102.50 per share, and it pays an $8.50 annual dividend. If the company were to
RideAnS [48]

Answer:

8.38%

Explanation:

Data provided

Annual dividend = $8.5

Perpetual preferred stock = $102.50

Flotation cost = 4.00%

The computation of cost of preferred stock is shown below:-

Cost of preferred stock = Annual dividend - (Perpetual preferred stock - (Perpetual preferred stock × Flotation cost percentage))

= $8.5 ÷ ($102.50 - ($102.50 × 0.04))

= $8.5 ÷ ($102.50 - $4.1)

= $8.5 ÷ $101.4

= 8.38%

7 0
3 years ago
Imagine that in the frame of Azerbaijan National Football Championship Nefthci and Karabakh football teams will have a match in
Ymorist [56]

Answer:

The fans as they purchase tickets

Explanation:

The government has imposed a $2 tax per seat. The stadium management will increase the price of tickets per seat by at least $2. It means the customers (fans) will pay an extra amount per seat to cater for the taxes.  

The stadium management will act as a tax intermediary. They will collect the $2 per seat tax from the ticket sales and remit it to the government.

8 0
3 years ago
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