If the marginal propensity to consume equals 0.9, the simple spending multiplier is

How can a country achieve higher levels of competition and a variety of products in an industry with only one or two domestic fi

SSSSS [86.1K]

Through promoting intra-industry trade, a country can increase levels of competition and the range of products produced in an industry with only one or two local enterprises producing a good. International trade for goods produced by the same business is known as intra-industry trade.

According to the idea of economies of scale, production costs often decrease as output scale increases. When it makes it possible for one or two large producers to supply the entire country, it becomes particularly important to international trade. A way to maintain consumer choice and competition while combining economies of scale-driven lower average manufacturing costs is through international trade.

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5 0

1 year ago

describe the difference in economic profit between a competitive firm and a monopolist in both the short and long run. which sho

bogdanovich [222]

A company in monopolistic opposition produces an allocatively green output degree even as a company in best opposition produces a productively green output degree.

The long-run equilibrium answer in monopolistic opposition usually produces 0 monetary income at a factor to the left of the minimal of the common overall value curve. The life of excessive limitations to access prevents corporations from coming into the marketplace even withinside the long run.

Therefore, it's far viable for the monopolist to keep away from opposition and hold making tremendous monetary income withinside the long run. One feature of a monopolist is that it's far a income maximizer. Since there's no opposition in a monopolistic marketplace, a monopolist can manage the charge and the amount demanded. The degree of output that maximizes a monopoly's income is calculated through equating its marginal value to its marginal revenue.

Learn more about company in monopolistic here:
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8 0

1 year ago

Sarasota Company has a factory machine with a book value of $86,300 and a remaining useful life of 7 years. It can be sold for $

RUDIKE [14]

Answer:

See the explanation for answer

Explanation:

Analysis showing whether the old machine should be retained or replaced is as prepared below:

Retain Replace Net Income

Equipment Equipment Increase(Decrease)

Variable manufacturing costs 43,63,100 32,32,600 11,30,500

New machine costs 0 3,59,000 -3,59,000

Sell old machine 0 -33,500 33,500

Total 43,63,100 35,58,100 8,05,000

The old factory machine should be replaced as there is increase in net income by 805,000 when old machine is replaced.

4 0

3 years ago

2-a. Refer to the original data. How much will net operating income increase (decrease) per month if the company uses higher-qua

Vadim26 [7]

The original data is :

Data for Hermann Corporation

Per unit Percent of sales

Selling price $ 75 100%

Variable expenses 51 68

Contribution margin $ 24 32%

The fixed expenses are $ 75,000 per month and the company is selling 4000 units per month.

Solution :

Present Proposed

Sales 300000 375000

Less : Variable cost 204000 275000

Contribution margin 96000 100000

Less : Fixed expenses <u> 75000 </u> <u> 75000 </u>

Net income 21000 25000

The net operating income : Increases 4000

Net operating income = increased sales Net income - current sales net income.

Therefore the higher quality component should be used.

8 0

2 years ago

What do we ignore when we measure GDP?

Dovator [93]

Numerous things are excluded. For example, free of charge services are not counted such as those when family members help each other. In addition, producing things for yourself or others free of charge is also excluded. These are called non-market transactions.

3 0

2 years ago