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Zielflug [23.3K]
3 years ago
6

In the long run the prices charged by a firm in monopolistic competition will be

Business
1 answer:
kumpel [21]3 years ago
6 0

Answer: The correct answer is "d. equal to average cost, including the opportunity cost of capital.".

Explanation: In the long run the prices charged by a firm in monopolistic competition will be equal to average cost, including the opportunity cost of capital.

In long-term monopolistic competition, the demand curve will be tangent to the average long-term cost and the price set at this level. The benefits will be equal to zero and therefore there will be no entry or exit of companies.

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Negacho, a food and beverage company, introduced a new flavor of potato chips called South Indian Chillis. It received a positiv
Genrish500 [490]

Answer:

Inflow of innovation

Explanation:

Negacho introduced its new flavoured chips and received positive response. This shows that the market is open to adopting new innovative products

This is what prompted Brex Mex to introduce their own flavored potato chips.

Basically the market is favorable to introduction of new ideas and products.

8 0
3 years ago
On January 1, Parson Freight Company issues 7%, 10-year bonds with a par value of $2,000,000. The bonds pay interest semiannuall
Minchanka [31]

Answer:

The correct option is Debit Cash $1,864,097; debit Discount on Bonds Payable $135,903; credit Bonds Payable $2,000,000.

Explanation:

This question is an instance of bonds issued at a discount. This happens when a bond is issued below the face value of the bond and also happens when the coupon rate on the bond payable is less than the market rate.

The face value of the bond payable is $2,000,000 while the market value is $1,864,097, so there is a discount of $2,000,000 - $1,864,097 = $135,903 on the bond payable, which is to be amortized over the life of the bond payable.

So, the appropriate journals to record this transaction is as provided above.

4 0
3 years ago
In an open economy, national saving equals a. domestic investment. b. domestic investment plus net capital outflow. c. domestic
egoroff_w [7]

In an open economy, national saving equals to domestic investment and net capital outflow

Explanation:

In an open economy national saving as considered or calculated an equal to the domestic investment and net capital outflow.

The savings saved by the households are generally deposited in the the banks accounts and banks use this amount to give loans to the business organisation and they make money from these loans.

Apart from this, countries also invests in the other foreign countries which is also considered as domestic (national) saving.

7 0
3 years ago
The market price of Friden Company's common stock increased from $15 to $18. Earnings per share of common stock remained unchang
WINSTONCH [101]

Answer: Option (C) is correct.

Explanation:

Given that,

Old market price of stock = $15

New market price of stock = $18

Here, we assume that EPS be $5.

So,

Price-earning ratio at old price = \frac{Market\ Price}{EPS}

                                                   =  \frac{15}{5}

                                                   = 3

Price-earning ratio at New price = \frac{Market\ Price}{EPS}

                                                   =  \frac{18}{5}

                                                   = 3.6

Hence, price-earnings ratio increases.

7 0
3 years ago
Most resources are nonrenewable, and wants and needs are limited. This is an example of?
dimulka [17.4K]

Answer:

scarcity.

Explanation:

Scarcity can be defined as an economical problem that gives the relationship between non-renewable (limited) resources and the limitless wants and needs of consumers.

Basically, it's very important that producers of goods and services make decisions that would help them on how to efficiently allocate scarce or limited resources, in order to meet the unending requirements, wants and needs of consumers.

In Economics, an example of scarcity is that most of the resources used for the manufacturing of finished goods and services are nonrenewable, and as a result, the wants and needs of the end users or consumers are limited. Thus, economists would advise that economies should decide on what to produce, how to produce, when to produce and for whom to produce due to the finite and limited nature of resources i.e the concept of scarcity.

3 0
3 years ago
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