Answer:
$25
Explanation:
Since there is an available capacity of 5,000 units so in this case, the minimum transfer price which should be accepted is equal to the variable cost per unit i.e $25 and the same is to be considered as it is enough to cover its variable production cost
Therefore, all the other information which is given in the question is not relevant. Hence, ignored it
Answer: True
Explanation: I dont have none
Answer:
barriers to entry in monopoly but not in monopolistic competition.
Explanation:
Imagine a situation where a monopolistically competitive firm is doing very well and is able to earn economic profit (profits higher than normal) in the short run. Since this company is earning higher than normal profits, other companies will enter the market and start competing against them hoping to get a piece of that abnormally high gain. As more competitors enter the market, economic profits will start to decrease until finally they are eliminated.
Since monopolies do not face competition, they can earn economic profits in the long run.
Answer:
If the price of peaches goes down by $0.40 in the South, the quantity will decrease by 600 pounds per year.
Explanation:
- As given that the decrease in price by $0.40 per pound then the quantity in the North goes down by 600 pounds per years so from here we have understand that if the same prices goes down in the South, then the same decrease in pounds per year will occur i.e decrease in price by $0.40 per pound will result in the decrease in the quantity by 600 pounds per year.