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3 years ago

Confronted with the same unit cost data, a monopolistic producer will charge Group of answer choices

Business

1 answer:

dsp733 years ago

5 0

Answer:

a higher price and produce a smaller output than a competitive firm

Explanation:

A monpolistically competitive firm is a firm that :

1. Sells differentiated products from other firms in the industry.

2. Has many buyers and sellers

3. Is a price maker

4. Has no barrier to entry or exist of firms

An example of a monpolistically competitive firm is a resturant.

A competitive firm is a firm that:

1. Sells identical goods with other firms in the industry.

2. Is a price taker . Prices are set by forces of demand and supply

3. Has many buyers and sellers

4. There are no barriers to entry or exist of firms.

When a monopolistic and competition firm are faced with the same unit cost, a monopolistic firm would aim to earn profit by increasing its price and reducing the quantity produced.

While a perfect competition would sell at the price set by the forces of demand and supply. The firm can increase the quantity produced in order to increase revenue.

A monopolistic firm is able to charge a higher price for its products while a perfect competition isn't.

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There are more than two types of bachelors’ degrees<br><br> true or false?

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Answer:yes i googled

Explanation:

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4 years ago

Managers at sprocket inc. have recognized declining sales on their water purifier and must make a decision about what to do. the

lina2011 [118]

I would say that they should test the water purifier with tap water and run it through the purifier and see if it is actually purifying the water and that way determine if it is performing as it should an if not correct it.

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3 years ago

An analyst is forecasting net income for Excellence Corporation for the next fiscal year. Her low-end estimate of net income is

KIM [24]

Answer:

12.5%

Explanation:

We are estimating the probability to be greater than or equal to $337,500

This probability will be

P(X > $337,500) = (high-end estimate - 337500) / (337500 - low-end estimate)

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= 0.125*100

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4 years ago

Ring Me Up Inc. has net income of $143,100 for the year ended December 31, 2019. At the beginning of the year, 36,000 shares of

Vera_Pavlovna [14]

Answer:

$2.13

Explanation:

Computation what the basic earnings per share of common stock for the year ended December 31, 2019 be

Using this formula

Basic earnings per share = Net income - preferred dividends / Weighted average no of shares outstanding

Let plug in the formula

Basic earnings per share = $143,100 - (9,000*4.65%*100) / (36,000*12/12)+(18,000*8/12) - (4,300*1/12)

Basic earnings per share = $143,100 - 41,850 / 36,000+12,000 - 358

Basic earnings per share = 101,250 / 47,642

Basic earnings per share =$2.13

Therefore the basic earnings per share of common stock for the year ended December 31, 2019 be $2.13

3 0

3 years ago

A firm in a purely competitive industry has a typical cost structure. The normal rate of profit in the economy is 5 percent. Thi

Nadya [2.5K]

Answer: The answers are given below

Explanation:

a. What is its percentage rate of return?

From the question, we are told that the firm is earning $5.50 on every $50 invested by its founders. The percentage of return will now be:

= $5.50/$50 × 100%

= 0.11 × 100%

= 11%

b. Is the firm earning an economic profit? If so, how large?

The economic profit will be the difference that exists between the percentage of return which is 11% and the normal rate of profit which is 5%. This will be:

= 11% - 5%

= 6%

The firm is earning economic profit of 6%.

c. Will this industry see entry or exit?

There will be entry into the industry. This is because the percentage of return which is 11% is greater than the normal rate of profit which is 5%.

d. What will be the rate of return earned by firms in this industry once the industry reaches long-run equilibrium?

The rate of return earned by firms in this industry once the industry reaches long-run equilibrium will be 5% which is the normal rate of profit in the economy.

4 0

3 years ago