All categories

3 years ago

True or false:

Business

1 answer:

Sedaia [141]3 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

What is the expected rate of return on a bond that pays a coupon rate of 9% paid semi - annually, has a par value of $1,000, mat

spayn [35]

Answer:

b. 7.28%

Explanation:

This question is asking for the yield to maturity(YTM) of the bond. You can solve this using a financial calculator with the inputs below. Additionally, adjust the coupon payment(PMT) and time to maturity(N) to semiannual basis.

Time to maturity; N = 5*2 = 10

Face value; FV = 1000

Price of bond; PV = -1071

Semiannual coupon payment; PMT = (9%/2) *1000 = 45

then compute semiannual interest rate; CPT I/Y = 3.64%

Next, convert the semiannual rate to annual rate(YTM) = 3.64% *2

YTM = 7.28%

8 0

4 years ago

In the game of economics,

kirill [66]

Answer:

Services

Explanation:

In the game of economics, services are actions that other people value. Services are something which people get and it helps to improve the utility level of a customer. Services are valued by people because it satisfies their needs and wants. Moreover, this is why people pay a lot of money to get better services because it plays an important to fulfil human wants.

7 0

4 years ago

Your investment has a 20% chance of earning a 30% rate of return, a 50% chance of earning a 10% rate of return, and a 30% chance

stellarik [79]

Answer:

9.2%

Explanation:

expected return of the investment = potential return x chance of each return happening

Expected return of the investment:

20% chance of occurring x 30% potential return = 0.2 x 30% = 6%
50% chance of occurring x 10% potential return = 0.5 x 10% = 5%

30% chance of occurring x -6% potential return = 0.3 x -6% = -1.8%
total expected return = 9.2%

6 0

3 years ago

A market gap is which of the following?

nlexa [21]

Answer:

Explanation:

.......................................

5 0

4 years ago

The economy of Baruchville contains 2000 $1 bills. 1. If people hold all money as currency, what is the quantity of money? 2. If

julia-pushkina [17]

Answer:

a) $2000

b) $2000

c) $2000

d) $20000

e) $11000

Explanation:

a) If people hold all money as currency:

Quantity of money = 2000 × $1 bills = $2000

b) If people hold all money as demand deposits and banks maintain 100% reserves:

Quantity of money = 2000 × $1 bills = $2000

c) If people hold equal amounts of currency and demand deposits and banks maintain 100% reserves

Since they are 2000 $1 bills and people hold equal amounts of currency and demand deposits and banks maintain 100% reserves, the 2000 $1 bills would be divided into two parts, one part for demand deposits and the other part for currency.

Therefore, demand deposits = 1000 × $1 bill = $1000

Currency = 1000 × $1 bill = $1000

Quantity of money = Currency + demand deposits = $1000 + $1000 = $2000

d) If people hold all money as demand deposits and banks maintain a reserve ratio of 10%.

Reserve ratio (r) = 10% = 0.1

Since people hold all money as demand deposits:

Therefore, demand deposits = 2000 × $1 bill × 1/r = $2000 × 1/0.1 = $20000

Quantity of money = Demand deposits × 1/r = $2000 × 1/0.1 = $20000

e) . If people hold equal amounts of currency and demand deposits and banks maintain a reserve ratio of 10%

Reserve ratio (r) = 10% = 0.1

Therefore, demand deposits = 1000 × $1 bill × 1/r = $1000 × 1/0.1 = $10000

Currency = 1000 × $1 bill = $1000

Quantity of money = Currency + demand deposit = $1000 + $10000 = $11000

6 0

4 years ago