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3 years ago

What are barriers to entry?

Business

1 answer:

yan [13]3 years ago

8 0

Answer:

Barriers to entry are the economic term describing the existence of high start-up costs or other obstacles that prevent new competitors from easily entering an industry or area of business. Barriers to entry benefit existing firms because they protect their revenues and profits

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The increase in total revenue that results from selling one more unit of output is A. marginal revenue. B. average revenue. C. m

egoroff_w [7]

Answer:

(i) Option (A) is correct.

(ii) Option (A) is correct.

Explanation:

(i) Marginal revenue refers to the change in total revenue obtained from the sale of an extra unit of a commodity. It is calculated by differentiating total revenue with respect to output. It is shown as:

$Marginal\ revenue=\frac{dTR}{dq}$

where,

TR = Total revenue

q = output

(ii) In a perfectly competitive market, price is equal to both average revenue and marginal revenue. Since, firms in a competitive market are not required to reduce the price of their product for selling more number of units. Hence, the average revenue remains the same at all the level of output. That's why average revenue in equal to the price under perfect market conditions.

Therefore, every additional unit of an output is sold at a same price, so the marginal revenue obtained from an extra unit is constant and hence, price is equal to the marginal revenue.

4 0

3 years ago

Comanic Corp. has common stock of $5,400,000, retained earnings of $2,000,000, unrealized gains on trading securities of $100,00

aalyn [17]

Answer:

$7,200,000

Explanation:

Given that,

Common stock = $5,400,000

Retained earnings = $2,000,000

Unrealized gains on trading securities = $100,000

Unrealized losses on available for sale securities = $200,000

Stockholder's equity:

= Common stock + Retained earnings - Unrealized losses on available for sale securities

= $5,400,000 + $2,000,000 - $200,000

= $7,200,000

Note that:

Unrealized gains on trading securities should be presented on the income statement. Hence, the ending retained earnings balance was already been adjusted with Unrealized gains (losses) on trading securities.

Unrealized losses on available for sale securities not included in the income statement and it directly goes to the balance sheet.

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4 years ago

The manager of the bank where you work tells you that the bank has $300 million in deposits and $255 million dollars in loans. I

tigry1 [53]

Answer:

The bank is holding $19.5 million in excess reserves.

Explanation:

If the bank has $300 million is deposits and the reserve ratio is 8.5% then the bank needs to have minimum reserves of 8.5% of 300 million so the minimum reserves are 0.085*300 million = 25.5 million

How ever the actual reserves of the bank is the difference between deposits and loans. The deposits are 300 million and loans are 255 million so the actual reserves are 300 million-255 million= $45 million

Excess reserves is the difference between the actual reserves and the minimum reserves so 45 million - 25.5 million = 19.5 million.

4 0

3 years ago

Having done "21 for 21" shots, deanna barely remembers her 21st birthday. that is, her _____ memory is sketchy.

zysi [14]

The answer to this question is episodic memory
episodic memory refers to the recollection of personal experience that cames in the form of small fragment.
Alcool hevily affect our brain capability to form memory and it is normal for people who drank that amount of alcohol to experience memory loss/hindered upon the period leading to the drunk effect

8 0

3 years ago

On April 1, 2014, Headland Inc. entered into a cost-plus-fixed-fee contract to construct an electric generator for Altom Corpora

MA_775_DIABLO [31]

Answer:

Gross profit to be recognized = $196,140

Explanation:

Headland Inc.

Gross profit to be recognized by Headland at December 31, 2014 ending

Estimated contract cost $1,962,000

Fixed fee $467,000

Total $1,962,000+ $467,000) $2,429,000

Total estimated cost $1,962,000

Gross profit ($2,429,000- $1,962,000) $467,000

percentage of completion:( $829,900/1,962,000) 42%

Gross profit to be recognized: $467,000*42% $196,140

4 0

4 years ago

What are barriers to entry?​

What are barriers to entry?