All categories

2 years ago

True or false:

Business

1 answer:

Sedaia [141]2 years ago

5 0

Answer:

True

Explanation:

Monopolistic competition is a form of competition involving an industry in which products and services offered are similar but not perfect substitutes. This type of industry, is familiarized with customers in their everyday lives.

Monopolistic competition has characteristics between perfect competition and monopoly and firms involved have similar degrees of market power. Firms in this industry are also price makers as producers in this type of industry, have control over the pricing of their goods and services.

Demand is subject to changes in price, indicating that demand is highly elastic in monopolistic competition. Entry and exit barriers are low in a monopolistic competitive industry and decisions made by one firm, does not directly affect the decisions of its competitors.

Restaurants, hair salons, cleaning products are examples in this type of industry.

You might be interested in

Dr. regan was hired by the siri company to assist them with retaining their employees without lowering profits and expectations.

Anestetic [448]

Dr. Regan was hired to help retain employees by the Siri corporation without losing money and expectations. He was the one who suggested that employees could decorate their work spaces and this would help employees feel more comfortable where they have to work 8 or more hours per day. This then helped the company by people not calling in and less people quit their jobs. Dr. Regan was most likely an industrial and organizational psychologist. Many companies hires these types of psychologists to help their employees with stress at work and to put employees at ease.

7 0

2 years ago

Johnson Enterprises uses a computer to handle its sales invoices. Lately, business has been so good that it takes an extra 3 hou

Masteriza [31]

Answer:

The incremental cost is ($10,360)

Explanation:

Analysis of total cost over the 5 year period

Retain Old Machine Buy New Machine

Variable / Incremental Operating

Costs

Old Machine 124,750

New Machine 97,800

Old Machine Book Value

Retain: Annual depreciation 8,430

Buy : Lump sum written off 8,430

Old Machine Disposal (8,490)

Purchase Cost of New Machine 25,080

Total Cost 133,180 122,820

The use of new machine will result in lower cost for the next 5 years.The incremental cost is ($10,360)

8 0

3 years ago

Suppose Asarta Inc. is polluting yucko and they have been tasked with cleaning up some of their waste. The company decides to cl

uranmaximum [27]

Answer: The answer is No, because the MB > MC

Explanation:

They are not cleaning up enough because the MB>MC. Therefore, all other options which cut across - Yes, because the MC > MB,

No, because the MB > MC,

Yes, because the MB > MC and

No, because the MC > MB are wrong.

5 0

3 years ago

If the company were to issue an annual zero-coupon bond with a maturity of 2 years and par value of $1,000, what would be the ar

Contact [7]

Answer:

Note: The complete question is attached as picture below

1a. The one year spot rate can be calculated using the one year zero bond.

PV * (1 + S1) = FV

1 + S1 = 1000 / 900

S1 = 1.1111 - 1

S1 = 0.1111

S1 = 11.11%

1b. PV of the 2 year bond = $950

Annual coupon = 1000 * 5% = $50

950 = 50 / (1 + S1) + (50 + 1000) / (1 + S2)^2

950 = 50 / 1.1111 + 1,050 / (1 + S2)^2

1,050/ (1 + S2)^2 = 950 - 45 = 905

(1 + S2)^2 = 1050 / 905

1 + S2 = 1.160221/2

S2 = 7.714%

1c. Price of the 2 year zero bond = 1,000 / (1 + 0.07714)^2

Price of the 2 year zero bond = 1,000 / 1.1602

Price of the 2 year zero bond = 861.9203586

Price of the 2 year zero bond = $861.92

3 0

2 years ago

Market Research is necessary to discover the potential success of new and existing products. True False

arlik [135]

True Market Research is necessary to discover existing products

8 0

3 years ago