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2 years ago

Which of the following best represents the pricing behavior of firms in a monopolistically competitive industry?

Business

1 answer:

allochka39001 [22]2 years ago

3 0

Answer:

The correct answer is option B.

Explanation:

A monopolistic firm is characterized by a large number of buyers and sellers in the market producing differentiated products which are close substitutes, there are relatively easier entry and exit in the market.

In the given question, Teen Angle Hardware is looking for a niche or a slightly differentiated product to sell to teenagers. But is able to earn only a normal profit because there is a large number of firms in the market. And new firms can enter the market in the long run. So, this firm is an example of a monopolistic firm.

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Assume Purity Ice Cream Company, Inc., in Ithaca, NY, bought a new ice cream maker at the beginning of the year at a cost of $9,

olga_2 [115]

Answer:

Purity Ice Cream Company

a. Depreciation Schedule, using straight-line method:

Cost Depreciation Accumulated Net Book

Expense Depreciation Value

Year 1 $9,000 $2,000 $2,000 $7,000

Year 2 $9,000 $2,000 4,000 5,000

Year 3 $9,000 $2,000 6,000 3,000

Year 4 $9,000 $2,000 8,000 1,000

b. Depreciation Schedule, using unit of production method:

Cost Depreciation Accumulated Net Book

Expense Depreciation Value

Year 1 $9,000 $2,750 $2,750 $6,250

Year 2 $9,000 $1,900 4,650 4,350

Year 3 $9,000 $1,600 6,250 2,750

Year 4 $9,000 $1,750 8,000 1,000

Explanation:

a) Data and Calculations:

Cost of ice cream maker = $9,000

Estimated useful life = 4 years

Residual value = $1,000

Depreciable amount = $8,000 ($9,000 - $1,000)

Annual depreciation (Straight-line method) = $2,000 ($8,000/4)

Estimated productive life the machine = 16,000 hours

Annual usage: Depreciation Expense

Year 1 5,500 hours $2,750

Year 2 3,800 hours 1,900

Year 3 3,200 hours 1,600

Year 4 3,500 hours 1,750

Total 16,000 hours $8,000

Depreciation rate per hour = $0.50 ($8,000/16,000)

4 0

2 years ago

The Lancet, a leading medical journal, published a paper on a possible link between autism in children and the measles, mumps, r

Arada [10]

Answer: The correct answers are "A. The study included a large number of children who had been immunized against MMR and showed signs of autism", "D. The MMR vaccine contains themerosal, a preservative known to increase the risk of autism" and "C. The survey was conducted on a large group whose members were randomly selected ".

Explanation: Clearly, statements A, C and D are statements that if true would help to conclude that there is a cause and effect relationship between vaccines and autism since it indicates that a random (objective) sample was taken within which It includes children who have received the vaccine and had signs of autism and states that the vaccine contains a preservative that increases the risk of autism.

7 0

2 years ago

The u.s. government may require that apparel imported into the united states should use u.s. cotton, or use a certain amount of

slavikrds [6]

The u.s. government may require that apparel imported into the united states should use u.s. cotton, or use a certain amount of American labor. this is an example of a Domestic content provision

<h3>What is Domestic content provision?</h3>

The Domestic content provision ("BAA," originally found at 41 U.S.C. 10a–10d, now found at 41 U.S.C. 8301–8305), passed by Congress in 1933 and signed by President Hoover on his final day in office (March 3, 1933), mandated that the U.S. government give preference to purchases of goods made in the United States.
Similar limitations are imposed by other federal laws on third-party acquisitions made with government money, such as highway, and transportation projects.
The "Domestic content provision," which went into effect 50 years after the "Domestic content provision," is not to be mistaken with the former. The latter is 49 U.S.C., 5323 (j), a provision of the Surface Transportation Assistance Act of 1982, and it only applies to procurements linked to mass transit that cost more than $100,000 and were at least partially funded by government funding.

To learn more about Domestic content provision with the given link

brainly.com/question/15869059

#SPJ4

8 0

1 year ago

Compute the payback period for each of these two separate investments:

musickatia [10]

Answer:

1.89 years and 2.91 years

Explanation:

The formula to compute the payback period is shown below:

= Initial investment ÷ Net cash flow

For first case

The initial investment is $260,000

And, the net cash flow is shown below:

= Depreciation + incremental after tax income

where,

Depreciation equals to

= (Original cost - residual value) ÷ (useful life)

= ($260,000 - $10,000) ÷ (4 years)

= ($20,000) ÷ (4 years)

= $62,500

And the incremental after tax income is $75,000

So, the net cash flow would equal to

= $62,500 + $75,000

= $137,500

So, the payback period would be

= $260,000 ÷ $137,500

= 1.89 years

For second case

The initial investment is $170,000

And, the net cash flow is shown below:

= Depreciation + incremental after tax income

where,

Depreciation equals to

= (Original cost - residual value) ÷ (useful life)

= ($170,000 - $14,000) ÷ (9 years)

= ($156,000) ÷ (9 years)

= $17,333

And the incremental after tax income is $41,000

So, the net cash flow would equal to

= $17,333 + $41,000

= $58,333

So, the payback period would be

= $170,000 ÷ $58,333

= 2.91 years

5 0

2 years ago

A new labor-saving technology will likely result in..... Group of answer choices Lower wage share of output and lower Gini coeff

jekas [21]

Answer:

Higher unemployment, lower wage share of output, and higher Gini coefficient in the long run.

Explanation:

Since less labor will be used, total unemployment will increase. Besides less labor being used, more capital will be used, so the share of labor in total output will decrease. Labor efficiency increases, since you need less labor to produce the same or even a larger amount of output.

New technologies tend to increase the wages of high skilled labor and management. Since the Gini coefficient measures income inequality, then higher wages for a few will increase inequality.

This is an example of what is happening in the US, where highly trained labor is getting paid better every time while unskilled labor is getting paid the same as many years ago or their wage has even decreased with time. This shows how important a college education is, and the difference will only keep increasing.

7 0

2 years ago