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Firdavs [7]
3 years ago
15

Which of the following is not true of both firms in monopolistic competition and firms in perfect​ competition? A. Both types of

firms produce at minimum ATC. B. Both types of firms produce where MC​ = MR. C. Both types of firms have the possibility of​ short-run economic profits or losses. D. Both types of firms can earn zero economic profits in​ long-run equilibrium.
Business
1 answer:
ivanzaharov [21]3 years ago
7 0

Answer:

 A. Both types of firms produce at minimum ATC.

Explanation:

A monopolistic competition is when there are many buyers and sellers of differentiated goods and services.

A monopolistic competition is characterised by little or no barriers to entry or exit of firms. In the short run, if a firm is earning economic profit, in the long run, firms enter into the industry and drive economic profit to zero. Also, if the short run, firms are earning economic loss, in the long run, firms would leave the industry and economic profit would be zero.

A monopolistic competition doesn't produce at minimum ATC and as a result it operates with excess capacity.

A perfect competition is characterised by many buyers and sellers of homogenous goods and services.

There are no barriers to entry or exit of firms into the industry. So firms make zero economic profit in the long run.

It produces at minimum atc and where Mr equals mc.

I hope my answer helps you

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This type of quality control is done to rule out flaws in products so that they do not reach to the customers.

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8 0
1 year ago
According to the principle of comparative advantage, worldwide output and consumption will be higher when nations specialize in
Alex_Xolod [135]

Answer: According to the principle of comparative advantage, worldwide output and consumption will be higher when nations specialize in the production of those goods and services  "a. they can provide at a lower opportunity costs."

Explanation: The comparative advantage is the ability of a country to produce a good using relatively less resources than another. The theory of comparative advantages says that Each country in question will specialize in what is most efficient. At the same time, it will import the rest of the products in which they are most ineffective in terms of production. Although a country does not have an absolute advantage in producing any good, it may specialize in those goods in which it finds a greater comparative advantage and finally be able to participate in the international market.

5 0
3 years ago
In 2019, Jamie earns $7,000 in net investment income and incurs $12,000 of investment interest expense. What is the maximum amou
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Answer:

nothing to be carried forward to next year $7,000 deductible this year;

Explanation:

Investment income is a return on the investment. Interest Expense is the amount of interest paid on the investment amount taken as a loan. The maximum amount to be adjusted as an expense against investment income is the amount of Investment income. Expenses no more than investment income will be adjusted. Nothing to be carried forward to next year.

8 0
3 years ago
The break-even point is a.the maximum possible operating loss. b.where the total sales line intersects the total costs line on a
Alisiya [41]

Answer:

The answer is B.

Explanation:

To a layman, break-even point is the point where an entity neither make profit nor loss. It is the point where total revenue equals total cost(where the total sales line intersects the total costs line on a cost-volume-profit chart).

Points greater or above this intersection or point mean the firm is making profit and points lesser or below this intersection or point mean the firm is making loss.

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3 years ago
Select the incorrect statement regarding costs and expenses.Multiple ChoiceExpenses are incurred when assets are used to generat
d1i1m1o1n [39]

Answer:

Manufacturing-related production costs are initially recorded as expenses

Explanation:

Cost is defined as an amount that has to be paid or spent to buy or obtain something. Cost can be specific, like, "What is the cost of a particular product?" or it can be a penalty, like consider the cost of missing the event.

Expenses sounds similar to that of cost: an amount of money that must be spent especially regularly ro pay for something.

Manufacturing cost are considered to as those that are spent to transform materials into finished goods. Manufacturing costs include direct materials, direct labor, and factory overhead.

Manufacturing cost are also known as factory cost or production cost

3 0
2 years ago
Read 2 more answers
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