The characteristics of a competitive market, and a monopolistically competitive market are:
- Price is equal to marginal cost - competitive market,
- Easy entry and exit - both
- Few sellers - neither
- Homogeneous product - competitive market,
<h3>How are competitive and monopolistically competitive markets related?</h3>
Both competitive and monopolistically competitive markets are easy to enter and exit from but only competitive markets have their pruice equal to their marginal cost.
The goods in a monopolistically competitive market is slightly variated while those in competive markets are homogenous.
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The company's net income will increase if this product line is eliminated because of the decrease in the fixed cost.
<u>Explanation:</u>
In Economics, fixed costs, backhanded expenses or overheads are operational expense that are not reliant on the quantity of products or administrations delivered by the business. They will in general be time-related, for example, intrigue or leases being paid every month, and are regularly alluded to as overhead expenses.
With the decrease in the fixed costs of the company by closing this product line, the total cost of the company will also decrease and then this will increase the net income of the company.
Answer:
Dr merchandise inventory $3,500
Cr accounts payable $3,500
Dr accounts payable $600
Cr purchases returns and allowances $600
Dr accounts payable($3,500-$600) $2,900
Cr cash $2,900
Explanation:
The purchase of goods worth $3,500 means that merchandise inventory is debited with $3,500 while accounts payable is credited with the same amount.
Upon returning goods worth $600,purchases returns and allowances is credited while accounts payable is debited.
When payment is made, cash is credited while accounts payable is debited to show that the outstanding debt has been paid
Answer:
The correct answer is "-$7200 (Unfavorable)".
Explanation:
Given:
Actual quantity,
= 54000 pounds
Standard price,
= $3 per pound
Standard quantity,
=
=
As we know,
⇒ By substituting the values, we get
⇒
⇒
⇒