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SVETLANKA909090 [29]
3 years ago
7

The following is a free response question released by the College Board from a previous AP exam to be used as practice for futur

e exams. You can complete the assignment in this document, using the drawing tools in Word (or any photo editing program) or print this document, and complete the activity by hand, submitting a scan or photo of your work. When you are done, submit the assignment for grading by your instructor. This question will be graded out of 7 points.
1. Assume that two firms are operating with identical cost schedules, but one firm is in a perfectly competitive industry and the other is in a monopolistically competitive industry.

(a) Using two correctly labeled graphs, show the long-run equilibrium price and output levels for each of these two firms.

(b) Compare the long-run equilibrium price and output levels for these two firms.

(c) What level of economic profit will each firm earn in the long run? Why do these results occur?

(d) For each of the two firms at the equilibrium quantity, indicate whether the firm’s demand curve is perfectly elastic, inelastic, unit elastic, inelastic, or perfectly inelastic. How can you tell?

Business
1 answer:
astraxan [27]3 years ago
5 0

<u>Solution and Explanation:</u>

(a). Firm in perfect competition produces at minimum efficient scale, MEC where average cost AC is minimum. The price is determined by the market supply and demand.

(b) Note that q1 is at the minimum of AC while Q* is to the left of q1. Similarly, P1 is equal to MC while P* is higher than MC. This shows that firms in perfect competition produce more and charge less than the firms in monopolistically competitive market.

(c) All firms in monopolistically competitive market as well as perfectly competitive market earn zero economic profit in the long run. This is because there is a free entry and exit

(d) Demand is steeper for firms in monopolistically competitive market so that demand is elastic. Demand is horizontal for any quantity which means it is perfectly elastic for a firm in competitive market.  

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The conflict management style that Jessica and Ted most likely used is compromising. This style focuses in finding a solution which is acceptable for both parties, and at the same time partially achieving what they want. As stated on the sample situation, both Jessica and Ted decided to both give in a LITTLE and only ask for SOME of their needs to be met. This kind of conflict management can also deceive the other party for its passive-aggressive approach.

6 0
3 years ago
Albright Company purchased as a long-term investment $500,000 of Benton Corporation 10-year, 9% bonds. Required: Present entries
katen-ka-za [31]

Answer:

March 1, purchased securities from Benton Corporation:

Dr Investment in securities 500,000

    Cr Cash 500,000

May 1, sold half of securities plus accrued interest:

Dr Cash 248,550

Dr Loss on investment in securities 5,000

Dr Brokerage fees 200

    Cr Investment in securities 250,000

    Cr Interest revenue 3,750

Securities were sold at 98 or $250,000 x 98% = $245,000, which means that the company lost $5,000 with that investment.

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3 years ago
This leadership style can be seen by some employees to be lazy.Immersive Reader
Flura [38]

Answer:

Free-Rein Leadership Style

Explanation:

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4 0
2 years ago
Countries that are partly industrialized but extract profits from poor countries to pass on to core countries are called?
Alenkasestr [34]

Semiperipheral countries. they have traditional values and institutions.

<h3>What is Semi-periphery countries?</h3>
  • According to world-systems theory, the industrialising, primarily capitalist countries that are situated halfway between the periphery and the core countries are the semi-periphery countries, also known as merely the semi-periphery.
  • Semi-periphery countries are frequently situated physically between core and peripheral regions as well as between two or more competing core regions.
  • They have organisational traits with both core countries and periphery countries.
<h3>What do you mean by semi-peripheral regions?</h3>
  • Semi-peripheral areas in world systems theory are those that are situated halfway between the core and the peripheral.
  • The organisational structure of these nations or areas is made up of both core and peripheral nations, and they are frequently situated geographically between two or more core nations.

Learn more about Semi-periphery countries here:

brainly.com/question/16191479

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2 years ago
First, regardless of the strategy, _____ storage and _____ storage must be secured.
shepuryov [24]

Answer:

The correct answer is offsite and onsite.

Explanation:

When implementing Business Continuity the preservation of company data comes first.

Business Continuity Plan/Strategies are those measures that a company puts in place to ensure that regardless of the threat, and or disruption to the existing model that allows them to provide goods or services, (e.g. tsunamis or earthquakes, riots and civil unrests, compulsory government curfew) they can continue to function, reach their customers and remain operational.

The first rule of Business Continuity Plan is to protect all information assets. Off-site data or information refer to those information and or data that are remotely stored. That is, they are secured far away from the physical location of the business such as a data or server farm, cloud storage etc.

Onsite data storage refers to storing data on the premises or site of the business. Some fo the tools used are Hard Disk Drivers, Solid State Drives, DVDs etc.

Cheers!

3 0
3 years ago
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