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3 years ago

Because a monopolistic competitor has some monopoly power, advertising to increase that monopoly power makes sense as long as

Business

1 answer:

densk [106]3 years ago

5 0

Answer: the marginal benefit of advertising exceeds the marginal cost of advertising

Explanation: Under a monopolistic competition, there are fewer sellers in the market, and due to the fact that a monopolistic competitor has some monopoly power, advertising to increase that monopoly power makes sense as long as the marginal benefit of advertising exceeds the marginal cost of advertising allowing the monopolist to turn a profit for the business while keeping it relevant for as long as is possible.

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A family buys a car for $25,000. The family pays $2,500 cash and takes out a loan for the rest at 8% simple interest.

Rom4ik [11]

Answer:

A. $150

Explanation:

Amount of car = $25,000

Initial payment = $2,500

If the family takes out a loan for the rest, the amount taken as loan

= $25,000-$2,500

= $22,500

If interest of 8% is charged on the loan for 5years, the interest charged for the 5years can be gotten using simple interest formula:

Simple interest = principal × rate × time/100

Simple interest = $22,500×8×5/100

Simple interest = $9,000

If total interest paid for 5years = $9,000

The family monthly payment will be:

= $9000/5×12 (since there are 12months in a year)

= $9,000/60

= $150

8 0

3 years ago

In the recent years, prices of basic food commodities such as corn, rice, and wheat have increased sharply. A recent article in

TiliK225 [7]

Answer:

I, II and III.

Explanation:

Price ceiling refers to the price control policy that is used by the government to protect the customers who are not able afford goods at the prevailing price.

If government of a nation sets a price ceiling below the equilibrium price level then this will increase the quantity demanded for the product because now goods become more affordable to the consumers and decreases the quantity supplied because it will become less profitable for the producers.

Hence, the demand for goods exceeds the supply of goods, this will create a shortage of goods in an economy.

6 0

3 years ago

What can you say about entrepreneur?

zalisa [80]

An entrepreneur is a person who starts a business and is willing to risk loss in order to make money” or “one who organizes, manages, and assumes the risks of a business or enterprise.”

6 0

3 years ago

Read 2 more answers

Suppose, that after a successful career, a worker retired precisely as planned with precisely the amount saved that they intende

IgorC [24]

Answer: Yes it is

Explanation:

The Permanent Income Hypothesis posits that human expenditure in the short term is based on the amount of income they expect to get as income over the long term.

If a person for instance, knows that they will receive a pay cut at the end of the year, they will probably spend less today to survive the pay cut.

Same goes for the worker in this scenario. They know that the amount they saved is all they have now and into the future so they are adjusting their expenses to ensure they survive on that saving.

7 0

3 years ago

Jim Busby calls his broker to inquire about purchasing a bond of Disk Storage Systems. The broker quotes a price of $1,180. Jim

Dimas [21]

Answer:

Jim Busby and Bonds of Disk Storage Systems

The new price of the bond is:

= $21,059

Explanation:

a) Data and Calculations:

Quoted price of bond = $1,180

Face value of bond = $1,000

Coupon interest rate = 14%

Bond's maturity period = 25 years

Current yield to maturity = 12%

Therefore, new price of the bond is computed as follows:

Bond Price = C* (1-(1+r)-n/r ) + F/(1+r)n

where C = Periodic coupon payment = $140 ($1,000 * 14%)

• F = Face / Par value of bond = $1,000

• r = Yield to maturity (YTM) = 12% and

• n = No. of periods till maturity = 25 years

= $140 * (1 – (1+0.12)^-25)/0.12 +$1000/(1+0.12)^25

= $140 * (1 - -17.00)/0.12 + $1,000/17.00

= $140 * (18.00)/0.12 + $1,000/17.00

= $140 * 150 + $59

= $21,000 + $59

= $21,059

5 0

2 years ago