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GalinKa [24]
3 years ago
8

When new firms enter a monopolistically competitive​ market, the economic profits of existing firms A. will decrease because the

ir demand curves will shift to the left. B. will decrease because their demand curves will become more inelastic. C. will decrease because their demand curves will shift to the right. D. will remain unchanged because they sell differentiated products. E. will increase because their average cost of production will decrease.
Business
1 answer:
Anit [1.1K]3 years ago
8 0

Answer:

The correct answer is option A.

Explanation:

Monopolistic competition is a market structure where there is a large number of producers selling differentiated products. These firms are price makers. There is very low or no restriction on the entry and exit of new firms.  

Positive economic profits earned by the existing firms will attract potential firms to enter the market. When new firms enter, it increases the supply in the market.  

This causes the price and market share of existing firms to decline. As the individual demand curves of the existing firms shift to the left, their profits will increase as well.

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Shen manages a grocery store in a country experiencing a high rate of inflation. He is paid in cash twice per month. On payday,
IRINA_888 [86]

Answer:

The correct answer is option b.

Explanation:

Shen is working in a country where the inflation rate is high.  

He gets a salary every two weeks.  

After receiving his salary he immediately goes out and buys all the goods he is going to need over the next two weeks.  

He converts the remaining salary in a more stable currency.  

He does this in order to prevent his salary from losing purchasing power.  

This effort that he is making to prevent his real income from losing value is called the shoe-leather cost of inflation.  

The shoe-leather cost can be defined as the cost of time and effort made to prevent the cash holdings from losing their value.

3 0
3 years ago
Year Cash Flow 0 –$ 8,300 1 2,100 2 3,000 3 2,300 4 1,700 What is the payback period for the set of cash flows given above? (Do
Readme [11.4K]

Answer:

3.53 years

Explanation:

The computation of the payback period is shown below:

In year 0 = $8,300

In year 1 = $2,100

In year 2 = $3,000

In year 3 = $2,300

In year 4 = $1,700

If we sum the first 3 year cash inflows than it would be $7,400

Now we subtract the $7,400 from the $8,300 , so the amount is  $900 as if we added the fourth year cash inflow so the total amount exceed to the initial investment. So, we deduct it

And, the next year cash inflow is $1,700

So, the payback period equal to

= 3 years + $900 ÷ $1,700

= 3.53 years

7 0
3 years ago
Businesses are using​ ________ development to create applications for shopping​ carts, user​ authentication, search​ engines, an
Elena-2011 [213]

Answer:

application development

Explanation:

Application development refers to the process of creating software that can perform specific tasks that a business requires. This software can range from applications that perform specific tasks to computer software that is used to manage major parts of the business. E.g. sales reports, automation processes, etc.

8 0
3 years ago
A financial institution formed by a large organization for its members is a credit union.
balu736 [363]
This should be True.
4 0
3 years ago
All of the following actions are consistent with feelings of regret except:________.
hram777 [196]

Answer:

Option A, selling losers quickly, is the right answer.

Explanation:

According to some researchers and their investigation consistency factors has the potential to influence feelings of regret. Regret may emerge as a function of consistency and discrepancy between an individual's orientation and effort of an evaluative decision. Whenever the decision-maker approves an orientation of serving errors associated with the actions are generally more consistent and thus led to comparatively less feeling of regret.

4 0
3 years ago
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