1answer.
Ask question
Login Signup
Ask question
All categories
  • English
  • Mathematics
  • Social Studies
  • Business
  • History
  • Health
  • Geography
  • Biology
  • Physics
  • Chemistry
  • Computers and Technology
  • Arts
  • World Languages
  • Spanish
  • French
  • German
  • Advanced Placement (AP)
  • SAT
  • Medicine
  • Law
  • Engineering
djverab [1.8K]
3 years ago
8

What effect does the entry of new firms have on the economic profits of existing​ firms? When new firms enter a monopolistically

competitive​ market, the economic profits of existing firms
Business
1 answer:
Ronch [10]3 years ago
7 0

Answer:

decrease and demand curve will shift to the left.

Explanation:

When new firms enter a monopolistically competitive​ market, the economic profits of existing firms will decrease. This is because, new firms enter an existing market if they spot a profit opportunity . The entry of these new firms will therefore increase the quantity of products or services supplied in the market which gives consumers more choices and substitutes. As a result, the demand curve of the existing firms will also shift to the left. because their

You might be interested in
Cazden Motors' stock is trading at $30 a share. Call options on the company's stock are also available, some with a strike price
slava [35]

Answer:

d. If Cazden's stock price rose by $5, the exercise value of the options with $25 strike price would also increase by $5.

Explanation:

A call option confers a right, not an obligation upon the call buyer to buy a security at a pre determined price, known as exercise price or strike price at a future date.

A call buyer would exercise his right only in the scenarios wherein the strike price is lesser than the current market price on maturity.

Profit of a call buyer is given by = CMP as on expiry - Exercise/Strike price - Option premium paid

wherein CMP=  Current Market Price

A call option is "in the money" when it's strike price is less than it's current market price. In the given case, it means if the CMP today represents CMP upon expiry, call buyer would exercise his right and his gain would be $5 i.e $30 - $25.

Since the $25 exercise option is "in the money", an increase in stock price by $5 will also increase the strike price by $5.

 

8 0
3 years ago
Carl started earning a paycheck and wants to invest some of what he earned. In this situation, why is it important for Carl to b
Alex_Xolod [135]
The reason that it is important for Carl to be financially literate is so that he can learn how to invest his own money and manage it properly so that it continues to grow. 
4 0
4 years ago
Read 2 more answers
Why do infomercials use both strong and weak arguments? to appeal to both high and low involvement consumers because it is neces
Vesna [10]

Answer:

The correct answer is letter "A": to appeal to both high and low involvement consumers.

Explanation:

Strong arguments are those that provide probable support for an idea. Weak arguments fail to provide support for different matters. Then, when talking about marketing, strong arguments are more likely to engage consumers with a product while weak arguments can attract consumers at low levels but the ideas lack reliability.

Thus,<em> infomercials can make use of both strong and weak arguments at different levels of consumer involvement.</em>

4 0
3 years ago
________ suggests repeated exposure to TV commercials, or low involvement information processing, induces purchase decisions bef
Mariana [72]

Answer:Passive learning

Explanation:Passive learning can be described as students taking part in course elements that include solely the taking in of information. Examples of this include: reading, listing to a lecture, watching a video, and looking at pictures or PowerPoints. Students learn at the level by taking in the information presented.

It is the process used by an agent to learn the automaton representing the behavior of a different system when he has no control over the inputs supplied to an automaton. In this case the agent is a passive observer of the behavior of the system without interacting with it.

3 0
3 years ago
Consumer ________ helps answer questions such as why people choose one product or brand over another
san4es73 [151]

Answer:

The answer is Consumer Behavior

Explanation:

Consumer Behavior is the study of individual customers, a group of people or organizations with regard to how these people and organizations purchase and dispose goods and services that are needed to satisfy their wants or needs.

This study seeks to understand how the behave in  the marketplace and the reason(s) for this behavior.

The importance of understanding consumer behavior is that it can help you become more effective at marketing, advertising, product design and development, which will have the major impact of your customers.

An example can be seen when someone seeks the advice of his/her friend before purchasing a car. In this case, they may buy the car not because they like it, but because a friend recommended that car.

4 0
4 years ago
Other questions:
  • Fabri Corporation is considering eliminating a department that has an annual contribution margin of $35,000 and $70,000 in annua
    7·1 answer
  • Moss County Bank agrees to lend the Ivanhoe Company $365000 on January 1. Ivanhoe Company signs a $365000, 6%, 9-month note. The
    14·1 answer
  • Megan fails to see any connection between how hard she works and the size of her annual pay raises. consequently, she puts littl
    11·1 answer
  • A state trial court held that raynes inc. violated its contract with cranwell management. raynes appealed the decision to the st
    6·1 answer
  • Suppose you buy a home and borrow $176,000 using a 30 year mortgage with an annual interest rate of 3.20% (compounded monthly).
    9·1 answer
  • All of the following statements about decision style are true EXCEPTA) autocratic styles are authority-based.B) decision styles
    10·1 answer
  • Stock A has a beta of .5, and investors expect it to return 5%.
    8·1 answer
  • The typical risks of a cost leadership strategy include:
    15·1 answer
  • The following data were accumulated for use in reconciling the bank account of Creative Design Co. for August 20Y6: Cash balance
    13·1 answer
  • Garrett sold his primary residence for $595,000, which was a capital gain of $315,000. how much may garrett exclude on his incom
    11·1 answer
Add answer
Login
Not registered? Fast signup
Signup
Login Signup
Ask question!