1answer.
Ask question
Login Signup
Ask question
All categories
  • English
  • Mathematics
  • Social Studies
  • Business
  • History
  • Health
  • Geography
  • Biology
  • Physics
  • Chemistry
  • Computers and Technology
  • Arts
  • World Languages
  • Spanish
  • French
  • German
  • Advanced Placement (AP)
  • SAT
  • Medicine
  • Law
  • Engineering
blondinia [14]
3 years ago
12

Monopolistic competition is characterized by excess capacity because: firms are always profitable in the long run firms charge a

price that is greater than marginal cost firms produce at an output level less than the least-cost output the demand for a product is perfectly elastic in this type of industry
Business
1 answer:
raketka [301]3 years ago
8 0
Demand for a product is perfectly elastic in this type of industry. Monopolistic competition occurs whereby the market is made up of many consumers and many producers and the product/service offered by the producers is differentiated. In this case, the producers are price makers as they posses significant pricing power. One key characteristic across the board is that since a similar range of products is being offered, demand is highly elastic and can easily shift based on small changes made by the producer.
You might be interested in
During the fiscal year ended 2016, a company had revenues of $520,000, cost of goods sold of $375,000, and an income tax rate of
7nadin3 [17]

Answer:

the net income is $92,800

Explanation:

The computation of the net income is given below:

Net income is

= Sales - cost of goods sold - tax rate on the remaining balance left

= $520,000 - $375,000 - (($520,000 - $375,000) ×0.36)

= $145,000 - $145,000 × 0.36

= $145,000 - $52,200

= $92,800

Hence, the net income is $92,800

8 0
2 years ago
Identify the three ranges of Aggregate Supply curve. Explain the impact of an increase in the AD curve in each segment.
mestny [16]

It should be noted that the three range of the aggregate supply curve will be the Keynesian, intermediate, and the Classical range.

The aggregate supply curve simply means the quantity of real gross domestic product that is supplied by an economy at different price levels.

The three ranges of the aggregate supply curve are the Keynesian, intermediate, and Classical ranges. In the Classical range, the economy is producing at full employment.

Typically, an increase in aggregate demand (AD) will lead to a rise in the price of the goods that are supplied.

Learn more about supply on:

brainly.com/question/237337

8 0
2 years ago
ADP reports the following income statement.
oee [108]

Answer:

Forecast of 2020 net earnings = $299.2 million.

Explanation:

Note:

a. See part a of the attached excel file for the calculations of the Historic Percent of Total Revenue.

b. See part b of the attached excel file for the Forecast of ADP’s 2020 income statement.

From part b of the attached excel file, we have:

Forecast of 2020 net earnings = $299.2 million.

Download xlsx
3 0
3 years ago
A major airline sells an aggressively low priced ticket compared to a new low-fare airline, which is trying to enter the market.
ankoles [38]

Answer:

The correct option is is A, predatory pricing

Explanation:

Predatory pricing is an illegal approach to pricing where a firm fixes a very low price in order to send competitors out  of business.

This is very applicable to a firm that has economies of scale where its cost per unit reduces as more and more units are produced, making it possible to undercut competitors without feeling much impact in profitability.

This approach is against the anti-trust law as it paves for a monopoly market,where only one firm operating in the market determines the price which is not likely to be favorable to consumers

8 0
3 years ago
Read 2 more answers
Dave owns 15 shares of ABC mining stock. on monday the value of each shares rose $2 but on tuesday the value fell $5. what is th
IgorC [24]
First, the value of each share rose by 2. So we have +2.

Then it fell by 5. So we have
2 - 5 = -3

Each share has a net value of negative 3.
Dave owns 15 shares. So,
15 * (-3) = -45.
So, there is a net loss of $45.
8 0
2 years ago
Other questions:
  • The board of directors of Orange Corporation, a calendar year taxpayer, is holding its year-end meeting on December 28, 2010. On
    15·1 answer
  • When the cost and benefits of a policy are narrowly concentrated, they ar?
    9·1 answer
  • While demand is based on consumer purchases, supply is MOST LIKELY based on
    6·1 answer
  • What is the price of a European put on a non-dividend-paying stock when the stock price is $79, the strike price is $77, the con
    13·1 answer
  • For a normal good, an increase in consumer income will cause the market demand for the product to:
    7·1 answer
  • Late in the current year, Jolsen Company signed a four-year contract with an advertising agency. Under the contract, Jolsen must
    5·1 answer
  • Melissa invested her savings in two investment funds. The amount she invested in Fund A was $6000 less than the amount she inves
    11·1 answer
  • What is the purpose of the arrange all command
    5·1 answer
  • Define the following term:depression. economics.​
    6·1 answer
  • stock a has an expected return of 20%; stock b has an expected return of 5%, what is the ecpected return on a portfolio is compr
    14·1 answer
Add answer
Login
Not registered? Fast signup
Signup
Login Signup
Ask question!