The economy of the United States is often described as:

Assume that in a monopolistically competitive industry, firms are earning economic profit. This situation will:

forsale [732]

Answer:

attract other firms to enter the industry, causing the existing firms' profits to shrink.

Explanation:

Monopolistic competition can be defined as an imperfect competition where many producers or organizations sell differentiated products that are not perfect substitutes. Examples of firms or organizations engaging in a monopolistic competition are restaurants, shoes, clothing lines etc.

Generally, a monopolistic competitive market is characterized by the presence of large numbers of firm (producers) and a very low entry barrier.

Hence, in a monopolistic competition, firms have a degree of control over price, make independent decisions and can freely enter or exit the market in the long-run. Therefore, these firms combine elements of both monopoly and competition.

When a monopolistically competitive firm is in long-run equilibrium marginal revenue is equal to marginal cost (MR = MC) . This ultimately implies that in the long-run, firms engaging in monopolistic competitive market are often going to manufacture the quantity of goods where the marginal cost (MC) curve intersect with the marginal revenue (MR). Also, the price set would be greater than the minimum average total cost (ATC).

Hence, assuming that in a monopolistically competitive industry, firms are earning economic profit. This situation will attract other firms to enter the industry, causing the existing firms' profits to shrink.

6 0

2 years ago

A student believes that less than 50% of students at his college receive financial aid. A random sample of 120 students was take

den301095 [7]

Answer:

P-value is greater than the significance level, we fail to reject null hypothesis.

Explanation:

Here,

Sample size = n = 120

Sample proportion = p = 0.6500

Population Proportion = $P_{0}$ = 0.5

Level of significance = α = 0.02

Step 1: 

$H_{0}$ : p = 0.5

$H_{1}$ : p < 0.5 (Left tailed test)

Step 2:

The critical vale is = 2.0537

Step 3:

The test statistic is,

z = $\frac{p - p_{0} }{\sqrt{\frac{p_{0} (1-p_{0}) }{n} } }$

Step 5:

Conclusion using critical value: Since the test statistic value is greater than the critical value, we fail to reject null hypothesis.

Step 6:

Conclusion using P-value: Since the P-value is greater than the significance level, we fail to reject the null hypothesis.

3 0

3 years ago

Markland First National Bank of Rolla utilizes Kanban techniques in its check processing facility. The fol-lowing information is

Alisiya [41]

Answer:

the current daily demand of the check processing facility is 8000 units, and a 16 containers is required.

Explanation:

Solution

Given that,

(A) The calculation of delay demand is as follows:

K = (+_) (1 +) C

K = is the number of containers

d = the average delay demand

w = the waiting time per average per unit

p = the average processing time per unit

C = Container quantity

α = safe guard policy variable

Now,

The average processing time = 2/24 * 60 =0.0167

The average waiting time is = 2/24 =0.083

The required number of container = 20 = (0.083 + 0.0167 ) (1 + 0.25) /50

which is

20 * 50 = (0.1) (1.25)

Thus,

1000 / 0.125 = 8000

Now,

The average daily demand is 8000

The next step is to find out how many containers would be needed.

Now,

If there is no waste, it is = 0

The required number of containers will be =

K = 8000 ( 0.083 + 0.0167) ( 1 + 0 )/ 50

= 8000/5= 16 Containers

7 0

2 years ago

Assume that a speculator purchases a put option on British pounds (with a strike price of $1.50) for $0.05 per unit. A pound opt

gladu [14]

Answer:

-$1,562.50

Explanation:

Calculation to determine The highest net profit possible for the speculator based

Premium of the option = $.05 per unit * (31,250 units)

Premium of the option= -$1,562.50

Therefore Based on the information given and the above calculation The HIGHEST NET PROFIT that will be possible for the speculator will be -$1,562.50

6 0

2 years ago

An economy produces apples (in kilos) and computers (in units). The quantities of apples in years 2008, 2009 and 2010 are 500, 5

Fudgin [204]

Answer:

Nominal GDP for year 2010 = $7,650

Explanation:

Nominal GDP measures the market value of all goods and services produced in an economy at current prices, normally in a year. Current prices are the prices of the year I want to know the GDP. In this case, our current prices are 2010 prices. To know the nominal GDP, we must multiply the quantities produced by their current prices:

Nominal GDP= 550*$3+6*$1000=$7,650

3 0

3 years ago