A monopolistically competitive firm faces a downward sloping demand curve and so it is a price searcher.
The demand curve for monopolistically competitive firm will be considerably more elastic than the demand curve that a monopolist faces because the monopolistically competitive firm has a very less control over the price that it can charge for its output.
The firm's control over its price will largely depend on the degree to which its product is differentiated from competing firms' products.
The monopolistically competitive firm will be a price‐searcher rather than a price‐taker because it faces a downward‐sloping demand curve for its product.
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Answer: "matrix boss" .
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Answer:
the correct journal entry to be recorded when the prepaid insurance payment is realized is,
A) Debit Insurance Expense
Credit Prepaid Insurance
Explanation:
prepaid insurance is an asset to the company, which means that we have paid in advance. because of this, when we pay it in advance, the entry will be
"prepaid insurance debit
money/bank credit"
this asset was created because the payment we made for the insurance does not belong to this accounting time period and it belongs to the next accounting period. matching concept is the underlying concept behind this.
once we reach the next time period, the prepaid expense becomes a actual cost and the asset is decreased.
Answer:
Dr Bonds payable $90,300,000
Dr loss on early redemption of bonds $5,106,000
Cr Discounts on bonds payable $3,300,000
Cr Cash $92,106,000
Explanation:
The amount of cash paid to bondholders by calling the bonds is the 102% of the face value of $90.3 million i.e $90.3*102%=$92,106,000
The proceeds would debited to cash while the face value of the bond of $90.3 million would be debited to bonds payable account.
In addition the remaining discount of $3.3 million would credited to discounts on bonds payable account.
The loss or gain on the bond call can then be determined as appropriate.