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Brilliant_brown [7]
4 years ago
15

In a market characterized by monopolistic competition, __________. a. producers do not have to consider the reactions of rival f

irms. b. the many competitors will focus on product differentiation. c. everyone is a price taker. d. government often encourages consolidation to reduce the number of competitors. e. price controls may be implemented.
Business
1 answer:
kupik [55]4 years ago
7 0

Answer:

b. the many competitors will focus on product differentiation.

Explanation:

In monopolistic competition, firms are price takers, that is to say, the price is given by the market (by the many forces of supply and demand: that is to say, firms and consumers), and as result, firms cannot influence the price of the goods.

For this reason, the firms try to distinguish themselves from their competitors by the product differentiation strategy: they try to offer a product that is different in some way: either of higher quality, or that provides more benefit, or that is more aesthetically pleasing, and so on.

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Suppose housing prices and stock prices decline significantly and cause autonomous consumption spending to decrease by $200 bill
kirill [66]

Answer: The change will be $400 billion.

Explanation: The marginal propensity to consume (MPC) is used to explain that increase in consumption is as a result of increase in income.

To calculate how much the equilibrium real GDP will change:

STEP1: CALCULATE THE MULTIPLIERS

multipliers = 1 ÷ (1 - MPC)

Where MPC = 0.

Therefore;

Multipliers = 1 ÷ (1 - 0.5) = 1 ÷ 0.5

Multipliers = 2

STEP 2: CALCULATE HOW MUCH THE EQUILIBRIUM REAL GDP WILL CHANGE;

Multipliers × change in consumption spending

2 × $200 billion = $400 billion

Equilibrium real GDP will change with $400 billion

4 0
4 years ago
PLEASE HELP ME
Gnom [1K]

Answer:

C

I hope it helps, sry if it doesn't!

I don't rly know how to explain it tho

Explanation:

6 0
3 years ago
The challenge of indirect benefits occurs when the social, economic, or environmental benefits of a company's sustainability com
earnstyle [38]

The challenge of indirect benefits occurs when the social, economic, or environmental benefits of a company's sustainability commitments do not directly benefit primary customers or clients.

<u>Explanation:</u>

An indirect gain is a profit which can not be directly measured but is still appreciated-as opposed to the more readily quantified direct benefits like decreased headcount or increased revenue. The indirect advantages progress only when the customers or clients are also benefited, otherwise one or another day the failure of such tactics, destruction of  image of firm, etc would happen.

Labor productivity is the best illustration of a technology's indirect gain; greater performance does not necessarily contribute to the elimination of an ongoing cost element but is understood in the context that it helps workers to do their roles better and quicker.

7 0
3 years ago
A manufacturer of washing machines has expanded its plant and has created excess capacity, just as the general economy has taken
Lostsunrise [7]

Answer:

. b. offer rebates and incentives for customers who purchase washing machines.

Explanation:

Increasing the productive structure of a firm must be carefully planned. There needs to be demand and take into account the expectations of the economy. When a company increases its structure over an inadequate period, the strategy can be fatal, as firms typically go to great lengths to make investments. In the case described, the company now has an idle capacity, ie does not use all its productive infrastructure. This is compounded by the moment of narrated economic crisis. In this situation, the company is most likely to promote price incentives through discounts to stimulate demand for washing machines. Thus, the employer gets a breath to maintain its activities until the economy recovers and she can use all the installed capacity.

8 0
3 years ago
Custom Quilters makes decorative comforters, quilted garments, and other products in a small sewing factory. The company expects
Goryan [66]

Answer:

Indirect and fixed

Explanation:

Indirect costs are those cost which cannot be directly attributable to any product.

Fixed costs are those which remains the same in the period whatever the level of activity (production, sales etc.) is. It does not vary with the change in the activity level.

Supervisor salaries cannot be traceable directly to any specific product, so it is considered as the indirect cost. As the Salaries are fixed payments made on monthly or annually basis, So it is also classified as the fixed cost.

6 0
3 years ago
Read 2 more answers
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