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nevsk [136]
3 years ago
13

Suppose that a monopoly firm is required to pay a new annual license fee just for the privilege of doing business in its city an

d that the fee is somewhat less than the economic profit the firm is now earning. In response to the increase in fees, the firm will_______________.
Business
1 answer:
nlexa [21]3 years ago
6 0

Answer:

will not change it prices

Explanation:

Economic profit is the difference between the total income received and the total costs of inputs minus opportunity costs. Opportunity costs will include other implicit costs.

While accounting profit considers the general expenses in calculating profit and loss, economic profit takes into account opportunity costs together with the regular expenses.

If the licensee fee will not affect the economic profit, it implies that the firm profitability will remain the same. The accounting profit, which is what is usually reported in the income statement, will not be significantly affected. Therefore, the company will likely not change its prices.

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VashaNatasha [74]

The process to identify potential events that may affect the entity, and manage risk to be within its risk appetite, to provide reasonable assurance regarding the achievement of entity objectives is called risk assessment.

An entity refers to someone or enterprise owning separate and wonderful prison rights, inclusive of an individual, partnership, or organization. An entity can, amongst different things, personal assets, engage in enterprise, enter into contracts, pay taxes, sue, and be sued.

The entity name is the call used by an enterprise to enter into contracts and make other criminal or administrative commitments. alternatively, the business name is the name your commercial enterprise operates under and shares with its clients, customers, and employees.

That which has a wonderful life as an individual unit. often used for businesses that have no physical shape. An existent something that has the houses of being actual, and having an actual lifestyle.

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7 0
1 year ago
Water and air are examples of _____ resources while people are considered to be _____ resources
kiruha [24]

Answer:

the answer is natural;human

7 0
3 years ago
Which of the following is an example of human resources planning?
zepelin [54]
It’s B :) because it ensures what fits best to the company about employees idk if that make sense.
5 0
3 years ago
What are the goals when a government uses expansionary monetary policy?
Ainat [17]

Answer:

stimulating economic growth

Explanation:

Expansionary monetary policies are the action by the Fed that aims at stimulating economic growth.  They aim at increasing the money supply in the economy. Examples of expansionary monetary policies are open market purchases, reduction of the discount rate, and reduction in the reserve requirement ratio.

Expansionary monetary policies stimulate economic growth by encouraging investments and consumption spending. When the discount rate is reduced, interest rates reduce automatically. Banks will loan out more when they a lot of money in their custody. Expansionary monetary policies are applied when there is a slowdown in economic growth.

5 0
3 years ago
As of December 31, year 2, a company has an inventory item that was originally purchased for $80 in year 1. The inventory item w
Naily [24]

The net realizable value of the inventory as of December 31, year 2, according to IFRS is <u>$75</u>.

<h3>What is net realizable value under IFRS?</h3>

Under the IFRS, inventories should be stated at the lower of cost and net realizable value. The net realizable value equals the selling price less the estimated costs of sale.

<h3>Data and Calculations:</h3>

Inventory purchase cost = $80

Net realizable value in year 1 = $60

Net realizable value in year 2 = $75

Replacement cost = $65

Normal profit margins = 20%

Thus, the net realizable value of the inventory as of December 31, year 2, according to IFRS is <u>$75</u>.

Learn more about net realizable value at brainly.com/question/794345

8 0
2 years ago
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