Answer: underallocated because long-run equilibrium occurs where price exceeds marginal cost.
Explanation:
Monopolistic competition occurs when there are many firms that are producing products that are differentiated. It should also be noted that one typical characteristics of a monopolistic competition is a large number of firms coupled with low entry barriers.
It should be noted that in monopolistically competitive markets, resources are underallocated because long-run equilibrium occurs where price exceeds marginal cost..
Answer:
A shift to the right of the demand curve can be caused by any factor other than price that increases the willingless of consumers to purchase a product of service (in this case newspapers).
Two other events can result in a shift to the right of the demand curve for newspapers:
- Local elections are held in Baltimore - when local elections are held, people become more interested in following local news in order to decide their vote, therefore, they are willing to purchase more newspapers.
- A dramatic event occurs in Baltimore - it could be a natural disaster, a massacre, or an economic crisis, if things become too far from normal, people will want to learn about what is happening, and will look out for information in newspapers.
How much taxes they take off
This attitude is called cash register honesty.
The book store worker knows very well that ball point pens, post-its, copies on the copier machine and long-distance phone calls are office resources and should, in principle, be used only for office purposes.
He is also aware that the he is responsible for his own needs - be it post-its or long-distance phone calls.
By taking some small supplies home or using the office equipment for personal use (e.g. making personal copies or making personal long-distance phone calls), he increases the cost to the company.
Yet, he continues to indulge in the activities described in the question, because he believes, at a personal level, that he can get away with it . (It's okay with him at a personal level.)
However, since stealing from the cash register is not ok with him on a personal level, he doesn't do it even though he knows he can get away with it. This attitude is called cash register honesty.
Answer:
Total cost of project $123,025
Explanation:
The total cost of the project would be the sum of the labour cost of the three consultants and the overhead charged to the project.
So, we can compute the total cost of project as follows:
Labour cost $
Senior consultant (175× 120) = 21,000
Other consultants (130× 350) = <u> 45,500 </u>
Total labour cost 66,500
Overhead (85%× 66,500) <u> 56,525 </u>
Total cost of project <u>123,025</u><u> </u>
