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4 years ago

What four conditions define monopolistic competition?

1 answer:

6 0

1. Many FirmsAs a rule, monopolisticallycompetitive markets are notmarked by economies ofscale or high start-up costs,allowing more firms.2. Few Artificial Barriers toEntryFirms in a monopolisticallycompetitive market do notface high barriers to entry.3. Slight Control over PriceFirms in a monopolisticallycompetitive market have somefreedom to raise prices becauseeach firm's goods are a littledifferent from everyone else's.4. Differentiated ProductsFirms have some control overtheir selling price because theycan differentiate, or distinguish,their goods from other productsin the marke

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Consider the economies of Macmillana and Bloedelo, which are identical except that the multiplier in Macmillana is smaller than

GrogVix [38]

Answer:

Macmillana's GDP is less sensitive economic fluctuations than Bloedelo's GDP. Two reasons account for this:

1) The keynesian multiplier is smaller.

The keynesian multiplier tells us about the sensitivity of GDP to increases in domestic expenditure (consumption, investment or government purchases). If the keynesian multiplier is small, then, GDP will be less sensitive to fluctuations in aggregate expenditure.

2) Macmillana's economy has implemented automatic stabilizers, while Bloedelo's economy has not.

Automatic Stabilizers are government policies meant to reduce fluctuations in GDP. The two most common automatic stabilizers are: income taxes and unemployment benefits.

Automatic Stabilizers reduce the kenyensian multiplier, dampening Macmillana's GDP sensitivity to fluctuations even more.

3 0

4 years ago

Vincent purchases a share of the stock and creates a floor by entering into a position in a 6-month option with strike 95. Calcu

defon

Based on the information given, it should be noted that the total payoff and profit will be -5 and -9.80 respectively.

<h3>How to calculate profit.</h3>

The following are gotten from the complete information:

Current stock price = 100
Put option strike= 95
Put premium = 4.80
Stock price at maturity = 80

Therefore, the payoff will be:

= (80 - 100) + (95 - 80)

= -20 + 15

= -5

The profit will be:

= Payoff - Put premium

= -5 - 4.80

= -9.80.

Learn more about profit on:

brainly.com/question/1078746

3 0

2 years ago

Gamble Corporation had beginning inventory $100,000, cost of goods purchased $700,000, and ending inventory $140,000. What was G

Serhud [2]

Answer:

5.83 times

Explanation:

The computation of the Gamble's inventory turnover is given below:

As we know that

Inventory turnover = Cost of goods sold ÷ (ending inventory + opening inventory) ÷ 2

= $700,000 ÷ ($140,000 + $100,000) ÷ 2

= $700,000 ÷ $120,000

= 5.83 times

6 0

3 years ago

Prepare journal entries to record the following four separate issuances of stock. A corporation issued 7,000 shares of $10 par v

german

Answer:

DEBIT $ 84.000 Cash

CREDIT $ 70.000 Common Stock

CREDIT $ 14.000 Paid-In Capital in Excess of Par Value

DEBIT $ 43.000 Promotion Expenses

CREDIT $ 3.500 Common Stock

CREDIT $ 39.500 Paid-In Capital in Excess of Par Value

DEBIT $ 43.000 Promotion Expenses

CREDIT $ 43.000 Common Stock

DEBIT $ 218.000 Cash

CREDIT $ 175.000 Preferred Stock

CREDIT $ 43.000 Paid-In Capital in Excess of Par Value

Explanation:

DEBIT $ 84.000 Cash

CREDIT $ 70.000 Common Stock

CREDIT $ 14.000 Paid-In Capital in Excess of Par Value

As the company declared a par value, it's necessary to split the equity in two accounts, Common Stock

for the stated value ($70,000) and the Paid in Capital for the excess of cash over the Common Stock ($14,000)

DEBIT $ 43.000 Promotion Expenses

CREDIT $ 3.500 Common Stock

CREDIT $ 39.500 Paid-In Capital in Excess of Par Value

As the company declared a par value, it's necessary to split the equity in two accounts, Common Stock

for the stated value ($3,500) and the Paid in Capital for the excess of the price over the Common Stock ($39,500)

In this case there is no cash because the shares are in exchange for the promotions effort (Expenses)

DEBIT $ 43.000 Promotion Expenses

CREDIT $ 43.000 Common Stock

As the company declared no-par value, it's not necessary to split the equity in two accounts, full value to common stocks account

In this case there is no cash because the shares are in exchange for the promotions effort (Expenses)

DEBIT $ 218.000 Cash

CREDIT $ 175.000 Preferred Stock

CREDIT $ 43.000 Paid-In Capital in Excess of Par Value

Last escenario the company declared preffered stock and not Common ones, so the equity account in this case it's Preferred stock

as the par value it's $100 ($175,000) to Preferred Stock and Paid in Capital for the excess of the price ($43,000)

6 0

4 years ago

The Eks-Plore Company exports outdoor gear for firms on the east coast of the United States. The company identifies companies in

ANTONII [103]

Answer:

exporting trading company

Explanation:

Eks-Plore doesn't actually manufacture any outdoor gear. it provides trading services to companies that manufacture them. Eks-Plore sells goods produced in the US and exports them to foreign markets, e.g. European and Asian nations. This is a type of intermediary that is also responsible for located new potential markets where to sell the goods.

4 0

3 years ago