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Vikki [24]
3 years ago
15

In the model of monopolistic competition, if an industry has large ________ relative to another industry, then we should expect

_________ firms to operate in a long-run equilibrium of that industry. A. marginal costs; less B. fixed costs; less C. marginal costs; more D. fixed costs; more
Business
1 answer:
tresset_1 [31]3 years ago
5 0

Answer:

Option A:

<em>Large</em> Marginal costs; less <em>firms in the industry</em>

Explanation:

Monopolistic competitions are market models which are charaterized by low barriers to entry.  High marginal costs will discourage firms from entering the industry, thereby leading to a reduced number of firms operating there in the long run.

Since the marginal costs reduce profit, if this continues to rise, most firms will discover that it is difficult to make profit in such an industry. They  will definitely leave industry for a different one.

This makes Option C  the answer.

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Salon Company originally issued 4,000 shares of $10 par value common stock for $120,000 ($30 per share). Salon subsequently purc
katen-ka-za [31]

Answer:

(D)  Credit to Paid-In Capital from Treasury Stock for $800.

Explanation:

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6 0
3 years ago
Identify and explain three reasons that an artist would elect to present content through abstract or non-representational form,
alexira [117]
There are at least 3 reasons why an artist would represent their ideas in abstract form. First, they may try to show the essential form or shape of the subject matter as in some paintings of the Group of Seven or Emily Carr in Canada in portraying snowy mountains or forests for example. Then, they may show disfigured people and horses screaming their outrage and dismay at being bombed like the painting of Guernica by Picasso to show outright rejection of the terrible bombing of Guernica in Spain by the Nazis in WWII. Also, color in an abstract painting can show the emotions of the painter such as in dark forests by Emily Carr to capture the feeling of being inside a dense forest of being closed in yet surrounded by wonderful vegetation.
6 0
3 years ago
How can companies increase return on common stockholders’ equity without increasing revenue?
Pani-rosa [81]
D) By reducing expenses you increase margins which means there is more money available for stockholders
4 0
2 years ago
FarCry Industries, a maker of telecommunications equipment, has 26 million shares of common stock outstanding, 1 million shares
Margaret [11]

Answer:

wP = 114.5 / 514.6   = 0.2225 or 22.25%

Explanation:

The WACC or weighted average cost of capital is the cost of a firm's capital structure. The capital structure of a firm can be made up of one or more of the following components namely debt, preferred stock and common equity. The WACC is normally calculated using the market value of these components. The formula for WACC is,

WACC = wD * rD * (1-tax rate)  +  wP * rP  +  wE * rE

Where,

  • wD, wP and wE represents the weight of debt, preferred stock and common equity in the capital structure based on the market value
  • rD, rP and rE are the cost of debt, preferred stock and common equity respectively.

To calculate the weight that should be assigned to the preferred stock in the calculation of WACC, we need to determine the market value of preferred stock and the market value of the capital structure.

Market Value - Debt = 10000 * 1000 * 1.01  =  $10.1 million

Market Value - Preferred stock = 1 * 114.50  = $114.5 million

Market Value - Common equity = 26 * 15  =  $390 million

Total MV of capital structure = 10.1 + 114.5 + 390  = $514.6

wP = 114.5 / 514.6   = 0.2225 or 22.25%

3 0
3 years ago
Control involves _____________, by definition.
anygoal [31]
D I think is correct answer.
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3 years ago
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