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3 years ago

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

Business

2 answers:

Colt1911 [192]3 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]3 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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The famous designer, Isaac Mizrahi, made a scheduled appearance at Borders bookstore in Mall of America to sign copies of his bo

Anna007 [38]

Answer: A. Special event

Explanation:

Special events are occasions where the customers and the company get to meet face to face and talk about products and services on offer. Special events are very ideal for product launches, or trade shows where the company aims to sell more of what it has.

Isaac Mizrahi most probably just launched the new book and so this special event is a way of marketing it to the public through face-to-face contact.

6 0

4 years ago

Your brother, who is prone to bearing substantial risk, suggests that you buy a security for $10,000 that promises to pay you $1

astraxan [27]

Answer:

16.59%

Explanation:

First we look at the formula which to determine the future value of the security and then work back to determine the annual return in terms of percentage

Future Value = Present Value x (1 +i)∧n

where i = the annual rate of return

n= number of years or period

We then plug the given figures into the equation as follows

we already know Present value to be $10,000 and the future value to be $100,000 and the number of years to be 15

Therefore, the implied annual return or yield on the investment is

100,000 = 10,000 x (1+i)∧15

(1+i)∧15 = 100,000/10,000 = 10

1 + i = (10∧(1/15))=1.165914

i= 1.165914-1

= 0.1659

= 16.59%

5 0

3 years ago

At a volume of 5,000 units, Pwerson Company incurred $32,000 in factory overhead costs, including $14,000 in fixed costs. If vol

shusha [124]

Answer:

If volume increases to 6,000 units and both 5,000 units and 6,000 units are within the relevant range, the company would expect to incur total factory overhead costs of $35,600

Explanation:

At a volume of 5,000 units, Pwerson Company incurred $32,000 in factory overhead costs, including $14,000 in fixed costs.

The variable in factory overhead costs = $32,000 - $14,000 = $18,000

The variable in factory overhead costs per unit = $18,000/5,000 = $3.6

Both 5,000 units and 6,000 units are within the relevant range. Therefore, when volume increases to 6,000 units, fixed costs are not change.

The variable in factory overhead costs = $3.6 x 6,000 = $21,600

Total factory overhead costs = $21,600 + $14,000 = $35,600

4 0

3 years ago

A $1000 bond with a coupon rate of 6.2% paid semiannually has eight years to maturity and a yield to maturity of 8.3%. If intere

ohaa [14]

Answer:

The price of the bond will be $879

Explanation:

Price of the bond is the present value of all cash flows of the bond. Price of the bond is calculated by following formula:

According to given data

Coupon payment = C = $1,000 x 6.2 = $62 annually = $31 semiannually

Number of periods = n = 2 x 8 years = 16 periods

Current Yield = r = 8.3% / 2 = 4.15% semiannually

Price of the Bond = $31 x [ ( 1 - ( 1 + 4.15% )^-16 ) / 4.15% ] + [ $1,000 / ( 1 + 4.15% )^16 ]

Price of the Bond = $31 x [ ( 1 - ( 1 + 0.0415)^-16 ) / 0.0415 ] + [ $1,000 / ( 1 + 0.0415 )^16 ]

Price of the Bond = $31 x [ ( 1 - ( 1.0415)^-16 ) / 0.0415 ] + [ $1,000 / ( 1.0415 )^16 ]

Price of the Bond = $521.74 + $357.26 = $879

7 0

3 years ago

What role do primary financial markets play in our economy? What role do secondary markets fill? Describe the relationship that

Bezzdna [24]

Answer:

What role do primary financial markets play in our economy?

The key function of the primary market is to facilitate capital growth by enabling individuals to convert savings into investments. It facilitates companies to issue new stocks to raise money directly from households for business expansion or to meet financial obligations

What role do secondary markets fill?

Secondary markets include option markets and deal markets in which ownership of securities is transferred. Investors create auction markets, such as the New York Stock Exchange, by congregating in one physical area to announce bids and ask prices and to trade and sell stock.

Describe the relationship that exists between financial institutions and financial markets and suggest a method in which this relationship can run more smoothly.

Financial instruments are those instruments that allow you to take an exposure to a specific type of risk, or simply to invest your money! Financial instruments are bought and sold by all the financial institution with different goals (to get a fixed return, to speculate, to provide short term and long term funding, to achieve a specific rate of return, to fund themselves, to buy or sell for a client…) and in different ways.

Financial markets are the places where Financial Instruments are bought and sold by Financial Institutions.

Explanation:

What role do primary financial markets play in our economy?

What role do secondary markets fill?

Describe the relationship that exists between financial institutions and financial markets and suggest a method in which this relationship can run more smoothly.

Financial markets are the places where Financial Instruments are bought and sold by Financial Institutions.

7 0

3 years ago