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iragen [17]
3 years ago
10

"In a market characterized by monopolistic competition, how will new firms choose to engage this market

Business
1 answer:
Julli [10]3 years ago
5 0

Answer:

New firms entering into a market characterized by monopolistic competition must differentiate their products from the competition by establishing their own brands.

Explanation:

There are four main characteristics of a monopolistic competitive market.  They are large numbers of buyers and sellers; perfect information; low entry and exit barriers; and similar but differentiated goods.  Monopolistic competition is a market structure where the firms offer similar but branded products which differentiate one firm's product from the other.  This implies that there is competition but because of the presence of brands, firms cannot compete directly with one another.

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GaryK [48]

Answer:

900 or 9 hundred

Explanation:

Given that :

the supply curve = P = 5 + 0.1Q

the Demand curve = P = 20 – 0.2Q

The relation of both above yields the equilibrium price and quantity .

SO;

5 + 0.1Q =  20 – 0.2Q

5 - 20 = -0.2Q - 0.1Q

-15 = -0.3Q

Q = -15/-0.3

Q = 50 hundreds of unit per day

Q = 5000 per day

So;

P = 5 + 0.1Q

P = 5 + 0.1 (50)

P = 5  + 5

P = $10

Therefore; the equilibrium price is $10

the equilibrium quantity is 5000

Similarly; the portable radio imposes $2.70 per day in noise costs on others.

∴ in order to deduce the social marginal cost curve ,w e need to shift the private marginal cost curve up by $2.70  for every unit.

Now; the social marginal cost curve will be ;

P = (5 + 2.7) + 0.1Q

P = 7.7 + 0.1Q

In order to determine the  social optimum ; we relate the  social marginal cost with demand curve as follows:

7.7 + 0.1Q =  20 - 0.2Q

0.1Q + 0.2Q = 20 - 7.7

0.3Q = 12.3

Q = 12.3/0.3

Q = 41 hundred unit per day

Q = 4100 per day

Recall :

P = 7.7 + 0.1Q

P = 7.7 + 0.1(41)

P = 7.7 + 4.1

P = $11.8

Finally; the equilibrium  number of portable radios rented is 5000 - 4100 = 900 or 9 hundred

6 0
3 years ago
Suppose the world price of cotton falls substantially. The demand for labor among cotton-producing firms in Texas will( increase
yarga [219]

I think B by Offering recipients of unemployment insurance benefits a cash bonus if they find a new job within a specified number of weeks

8 0
4 years ago
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This is a tax on imported goods designed to prevent domestic companies from having to compete with foreign goods of lower price
Mekhanik [1.2K]
Protective tariff is a tax on imported goods designed to prevent domestic companies from having to compete with foreign goods of lower or superior quality.
8 0
4 years ago
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Interperiod equity refers to the concept that current-year revenues are sufficient to pay for services provided that year, so th
amm1812

Answer:

True

Explanation:

INTERPERIOD EQUITY is a government's obligation for enterprise to disclose whether current-year revenues were sufficient to pay for current-year benefits, or was payments defer to future taxpayers. That is, interperiod equity refers to whether the revenues gotten in the current-year are sufficient enough to pay for the services provided that same year.

4 0
4 years ago
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Marwick Corporation issues 8%, 5-year bonds with a par value of $1,100,000 and semiannual interest payments. On the issue date,
Nina [5.8K]

Answer: $1,193,838.80

Explanation:

The price of a bond is the sum of the present value of the coupon payments and the face value at maturity.

= Present value of coupon payments + Present value of face value at maturity

First adjust the variables for semi-annual:

Number of periods = 5 * 2 = 10 semi annual periods

Coupon payment = 8% * 1,100,000 * 1/2 years = $44,000

Yield = 6% / 2 = 3%

Present value of coupon payments:

The coupon payments are constant so are an annuity:

= Annuity * Present value of an annuity factor, 10 periods, 3%

= 44,000 * 8.5302

= $375,328.80

Present value of face value

= 1,100,000 * Present value of 1, 3%, 10 periods

= 1,100,000 * 0.7441

= $818,510

Selling price:

= 375,328.80 + 818,510

= $1,193,838.80

8 0
3 years ago
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