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deff fn [24]
3 years ago
8

20. Which of the following is not a difference between monopolies and perfectly competitive markets? a. Monopolies can earn prof

its in the long run while perfectly competitive firms break even. b. Monopolies charge a price higher than marginal cost while perfectly competitive firms charge a price equal to marginal cost. c. Monopolies choose to produce the quantity at which marginal revenue equals marginal cost while perfectly competitive firms do not. d. Monopolies face downward sloping demand curves while perfectly competitive firms face horizontal demand curves.
Business
1 answer:
Naily [24]3 years ago
6 0

Answer:

The correct answer is option c.

Explanation:

A perfectly competitive market has a large number of buyers and sellers. The firms are price takers and the price is determined by the market forces. Thus the monopoly firms face a horizontal demand curve. This horizontal line represents price, average revenue, and marginal revenue. The equilibrium is obtained where price, (average revenue and marginal revenue) is equal to marginal cost. There is no restriction on entry and exit of firms in the long run. That's why firms face a break-even in the long run.  

While in a monopoly market there is a single firm. This firm fixes price higher than marginal cost. The demand curve of the monopoly is a downward sloping showing relatively elastic demand. A monopoly firm can earn profits in both the short run as well as the long run.

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When the price of a good or service is _________enough, it will encourage consumers to buy. However, the price also has to be __
asambeis [7]

Answer:

The correct words for the blank spaces are (<em>in that order</em>): low; high; opportunity; reservation.

Explanation:

For buyers and sellers to benefit from a transaction, the price of the goods or services offered must be at equilibrium. It implies the price is low enough for consumers to consider purchasing the product and high enough for producers to offer it earning a profit.

Besides, producers should consider their opportunity costs which are the costs of adding one more unit for production. On the other side of the road, consumers consumer their reservation price which is the maximum amount of money they could pay for a good or service based on the value they give to the product.

4 0
4 years ago
A company's relevant range of production is 10,000 to 15,000 units. When it produces and sells 12,000 units, its unit costs are
DENIUS [597]

Answer:

Total indirect manufacturing cost= $75,450

Explanation:

Giving the following information:

12,000 units:

Variable manufacturing overhead $ 1.50

Fixed manufacturing overhead $ 5.00

<u>First, we need to calculate the total fixed manufacturing overhead:</u>

Total fixed overhead= 5*12,000= $60,000

<u>Now, for 10,300 units:</u>

Total indirect manufacturing cost= 60,000 + 10,300*1.5

Total indirect manufacturing cost= $75,450

7 0
3 years ago
The simple case of a fixed per-unit tax is indicative of more complicated ones. consider a proportional sales tax and a progress
mars1129 [50]

<span>The tax revenues and quantities produced compare in these various cases in a way of the said proportional tax. The proportional tax is a type of tax processes and system that need the percentage of equal value and it came from the people who pay tax.</span>

8 0
3 years ago
Kingsbury Manufacturing has net sales revenue of $850,000, cost of goods sold of $344,600, and all other expenses of $328,300. T
gladu [14]

Answer:

56.46%

Explanation:

The computation of the gross profit percentage is shown below

Gross profit percentage is

= (Sales - cost of goods sold) ÷ (Sales) × 100

where,

Sales is $850,000

And, the cost of goods sold is $344,600

Now placing these values to the above formula

So, the gross profit percentage is

= ($850,000 - $344,600) ÷ ($850,000) × 100

= $505,400  ÷ $850,000 × 100

= 56.46%

8 0
3 years ago
Choose the letter of the item that best completes the statement or answers the question. Last year Jackson earned $500,000, Vele
Vitek1552 [10]

1. According to their states’ tax laws, which require each one to pay a tax of $500 despite their different earnings, the best description of the tax is <u>(c) regressive</u>.

<h3>What is a regressive tax system?</h3>

A regressive tax system is one where taxpayers pay a disproportionate share of the tax burden, given their earning levels.

A regressive tax system is not proportional or progressive.

2. An example of an excise tax is (b) tax on perfume.

3. The amount Rose Chin paid for the purchase of school supplies based on the state sales tax of 5% is <u>a) $12.60</u> ($12 x 1.05).

4. An example of a property tax is a) a tax based on the value of one's home.

5. The best example of the ability-to-pay principle is <u>b) income tax</u>.

6. An example of a tax based on the benefits-received principle is (a) bridge toll.

7. In the United States, taxes are used to accomplish all of the following except (c) determine which brands consumers buy.

8. For the apartment tenants, the tax is <u>d) a sales tax</u>.

9. The ultimate tax-burden bearer in question 8 is <u>(d) the tenants</u>.

10. An example of a protective tariff is (d) tax on the importation of foreign-made cars.

Thus, while income tax is mostly progressive in the United States, sales taxes are proportional, while some taxes are regressive because the amount paid is fixed and does not depend on the ability-to-pay principle.

Learn more about tax systems at brainly.com/question/12890967

#SPJ1

5 0
2 years ago
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