Answer:
The correct answer is D.
Explanation:
Monopolistic competition is a type of imperfect competition such that many producers sell products that are differentiated from one another as goods but not perfect substitutes (such as from branding, quality, or location). In monopolistic competition, a firm takes the prices charged by its rivals as given and ignores the impact of its own prices on the prices of other firms.
Monopolistic competitive markets:
have products that are highly differentiated, meaning that there is a perception that the goods are different for reasons other than price;
have many firms providing the good or service;
firms can freely enter and exits in the long-run;
firms can make decisions independently;
there is some degree of market power, meaning producers have some control over price; and
buyers and sellers have imperfect information.
Answer:
See attached picture.
Explanation:
See attached picture for explanation.
Answer: $2
Explanation:
From the question, we are informed that an investor purchases a stock for $38 and a put for $.50 with a strike price of $35 and that the investor sells a call for $.50 with a strike price of $40.
The maximum profit for this position will be the purchase price of the stock deducted from the strike price of call option. This will be:
= $40 - $38
= $2
Answer:
$2.27
Explanation:
Unit Cost =
If the average cost method is used, the materials cost per unit (to the nearest cent) would be: $2.27
