In running a home business, it is important to keep accurate financial records.

Verslas is a firm operating in a monopolistically competitive market. It is currently maximizing profit with an output of 1,200

Marina86 [1]

Answer:

b

Explanation:

A monopolistic competition is when there are many firms selling differentiated products in an industry. A monopolistic competition has characteristics of both a monopoly and a perfect competition. the demand curve is downward sloping. it sets the price for its goods and services.

An example of monopolistic competition are restaurants

When firms are earning positive economic profit, in the long run, firms enter into the industry. This drives economic profit to zero

If firms are earning negative economic profit, in the long run, firms leave the industry. This drives economic profit to zero

in the long run, only normal profit is earned

If Verslas is producing at a profit maximising point, it means that marginal revenue equal marginal revenue and the firm is earning a normal profit

3 0

3 years ago

What term refers to the knowledge, education, training, skills, and expertise of a firm's workers?

makkiz [27]

<span>Human capital is the term that refers to the knowledge, education, training, skills, and expertise of a firm's workers.
</span>Gary Becker, an economist from the University of Chicago has popularized this term. <span> The human capital includes assets of individuals that can be used to create economic value for the individuals, their employers, or their community: </span>

7 0

3 years ago

Colsen Communications is trying to estimate the first-year cash flow (at Year 1) for a proposed project. The financial staff has

Vilka [71]

Answer:

a.$700,000

b.$400,000

c.$650,000

Explanation:

Net Income = (Sales - Operating expense - Depreciation - Interest expense) x (1 - tax rate)

Sales is $5,000,000

operating expense is $3,500,000

depreciation is $1,000,000

interest expense is $1,000,000

tax rate is 40%=0.40

net income=(5000,000-3500,000-1,000,000-1000,000)*(1-0.4)

net income=-$300,000

Cash flow =net income +depreciation

cash flow=-$300,000+$1000,000

cash flow=$700,000

if the project cannibalize at $500,000 net income would be:

net income=(5000,000-3500,000-1,000,000-1000,000-500,000)*(1-0.4)

net income=-$600,000

cash flow=-$600,000+$1,000,000

cash flow is $400,000

Ignoring part b, a reduction in tax to 30% would impact thus:

net income=(5000,000-3500,000-1,000,000-1000,000)*(1-0.3)

net income=-$350,000

Cash flow =-$350,000+$1000,000

cash flow is $650,000

4 0

3 years ago

In response to duracell's introduction of the duracell ultra battery, energizer introduced an advanced formula battery. but unli

erastovalidia [21]

No, because consumers equate quality of batteries with higher prices. With batteries consumers believe there is a price- quality relationship, it does not make the consumers, price insensitive. Also, there is no indication Energizer set a target price and adjusted cost and quality components to maintain wholesaler and retailer margins.

6 0

3 years ago

Personal selling refers to

Mrac [35]

Answer:

The answer is option A)Personal selling refers to: A customer-directed flow of communications, often in a face-to-face encounter, designed to promote a product with the purpose of making a sale.

Explanation:

Personal selling involves a face to face approach encounter with customers. In advertising, Personal selling involves the use of marketers with great interpersonal and sales skills employed to promote a product offering in the field where they can interface one on one with customers for the purpose of generating sales.

This supports the definition of personal selling as a customer-directed flow of communications, often in a face-to-face encounter, designed to promote a product with the purpose of making a sale.

3 0

3 years ago