Answer:
price for a monopolistically competitive firm exceeds the marginal cost
Explanation:
Monopolistically competitive firms do not achieve allocative efficiency because the <em>"price for a monopolistically competitive firm exceeds the marginal cost"</em>
Allocative efficiency is known to be an economic concept which actually regards efficiency at the societal level. This usually refers to the production of the optimal quantity of some output. The quantity produced is actually the marginal benefit of one more unit which the society enjoys and which is equal to the marginal cost.
In a monopolistically competitive industry, they will produce a lower quantity of a good and then their prices will be higher than would a perfectly competitive industry. A monopolistic competitive firm’s demand curve actually slopes downward. This then means that it will charge a price that exceeds marginal costs.
Answer:
Pearson Corp
Budgeted Sales Revenue for the third quarter of 2016:
The budgeted sales revenue = $88,200 (441 x $200)
Explanation:
If First Quarter Sales = 400 units
Second Quarter Sales = 420 units (400 x 1.05)
Therefore, Third Quarter Sales = 441 units (420 x 1.05)
Another way to work it out is to compound the rate for two years:
(1.05)ⁿ = (1.05)∧2 = 1.1025
Sales in first quarter = 400 x $200 = $80,000
Sales in third quarter = $80,000 x 1.1025 = $88,200
The compounding of the rate of increase yield a compound factor that can be applied to the value of the sales in the first quarter to arrive at a sales value for the third quarter without working out the sales value for the second quarter also.
I would say the correct answer would be increase. If consumers expect prices to increase in the future, they would increase their demand for an item now. They would do this since they know that the price of that item now is much cheaper so they would tend to buy that item no rather than buying it in the future when the price is much higher.
The future value for annuity is $3030.
<h3>What is future value of an annuity?</h3>
The worth of a series of recurrent payments at a specific future date, assuming a specific rate of return, and discount rate, is the future value of the annuity. The future value of the annuity increases with the discount rate.
Some key features of future value of annuity are-
- A approach to determine how much money a stream of payments will be worth at some future date is to determine future value of an annuity.
- A present value of an annuity, on the other hand, calculates how much cash will be needed to provide a series of future payments.
- Payments are made in a typical annuity at the conclusion of each predetermined time frame.
- Payments are made at the start of each period in an annuity payable.
The formula for future value of annuity are-
F.V = P×
F.V = future value of annuity
P = Initial deposit; $1,000
r = rate of interest; 10%
Substitute the given values in the formula;
F.V = 1,000×
= 1,000×3.03
F.V = 3030
Therefore, the future value of the annuity of the deposited amount of $1,000 is $3030.
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