The governmental action which would eliminate some or all of the inefficiencies that results from monopoly pricing is; Choice B; Prohibiting the monopoly from price discrimination.
Discussion:
Price discrimination is a microeconomic pricing strategy where identical or largely similar goods or services are sold at different prices by the same provider(monopoly) in different markets.
In essence, when the government prohibits the monopoly from price discriminating, some of the inefficiencies of monopoly are eliminated.
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Answer:
The answer is: D) $5,500
Explanation:
To calculate the change in working capital we use the following formula:
Change in working capital = change in current assets - change in current liabilities
Since we don't know the current assets or liabilities from previous years, we can consider them to be 0.
Change in working capital = current assets - current liabilities
Change in working capital = $8,000 (inventory) - $2,500 (accounts payable)
Change in working capital = $5,500
Answer:
It show the <em>Changes in output in an economy as the price level changes, holding all other determinants of real GDP constant </em>
Explanation:
<em>The short run aggregate supply curve displays the adjustments in an economy's production as the price level increases, keeping all the other actual GDP determinants constant.
</em>
This demonstrates the connection of the price level to the output
Holding all GDP determinants stable as demand shifts with short run prices indicates a strong correlation among price level and output
Answer: The correct answer is "d. equal to average cost, including the opportunity cost of capital.".
Explanation: In the long run the prices charged by a firm in monopolistic competition will be equal to average cost, including the opportunity cost of capital.
In long-term monopolistic competition, the demand curve will be tangent to the average long-term cost and the price set at this level. The benefits will be equal to zero and therefore there will be no entry or exit of companies.
A sinking fund provision is attractive; to investors, so bonds with a sinking fund provision generally have lower yields than bonds without.
What is sinking fund provision?
Sinking provision means setting funds over time which are meant to repay the bond principal amount at bond maturity , in other words, a bond with such provision is safe because to a large extent, there would be no default on repayment of principal.
Besides, the fact that sinking fund provision on bonds is attractive means such bonds would earn lower yield as there is an inverse relationship between risk and return
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Full question with options:
A sinking fund provision is ________ to investors, so bonds with a sinking fund provision generally have _______ yields than bonds without.
a. unattractive; higher
b. unattractive; lower
c. attractive; lower
d. attractive; higher
