Answer:
d. not selected option d copyright
Monopolists do not prefer to produce in the when the demand for a good produced by them is inelastic. Option B is the correct answer.
- It is common to observe that monopolists, avoid engaging production when the demand for their product becomes inelastic.
- In order to understand this situation, it is important to address the meaning of inelastic demand.
- The term 'inelastic demand' refers to a situation where the demand for a product does not increase/decrease (change) when there is an increase/decrease (change) in its price.
- This does not lead to profits for a monopolist.
- It is because, a firm will be able to secure profits by producing lower amounts of goods for a higher price when the demand is elastic.
- Hence, when the demand is inelastic, the increase in the quantity will be sold at the previous standard price, leading to a fall in terms of the total revenue.
Therefore, it is clear that a monopolist will not produce when the demand for a good is inelastic.
Learn more about Demand Elasticity here:
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Answer:
The correct answer is (A)
Explanation:
Normally, goods which close substitutes tend to have more elastic demand as it is easier to switch from one brand to another because they are close substitutes. For example, if the price of Pepsi increases the consumers will easily shift towards Coca-Cola. So, close substitutes are price sensitive and they have high elastic demand compared to other goods.
Answer:
look at valorant the game outfits
Answer:
Bad debts expense Debit $ 600
Allowance for Uncollectible expenses Credit $ 600
Explanation:
The allowance for uncollectible accounts is estimated usually on the basis of a percentage of credit sales. The data in the question indicates that the estimated losses from uncollectible accounts is $ 1,000.
The unadjusted balance is $ 400, so the adjusting entry is for the balancing amount, i.e. $ 600. It is debited to bad debts and credited to allowance for uncollectible accounts.
