Answer:
a. marginal revenue is equal to marginal cost.
Explanation:
Monopolistic competition can be defined as an imperfect competition where many producers or organizations sell differentiated products that are not perfect substitutes. Examples of firms or organizations engaging in a monopolistic competition are restaurants, shoes, clothing lines etc.
Generally, a monopolistic competitive market is characterized by the presence of large numbers of firm (producers) and a very low entry barrier.
Hence, in a monopolistic competition, firms have a degree of control over price, make independent decisions and can freely enter or exit the market in the long-run. Therefore, these firms combine elements of both monopoly and competition.
When a monopolistically competitive firm is in long-run equilibrium marginal revenue is equal to marginal cost 
. This ultimately implies that in the long-run, firms engaging in monopolistic competitive market are often going to manufacture the quantity of goods where the marginal cost (MC) curve intersect with the marginal revenue (MR). Also, the price set would be greater than the minimum average total cost (ATC).
<em>Thus, a monopolistic competitive producer has a highly elastic demand curve and firms would eventually break even in the long-run. </em>
Answer:
September 9, petty cash fund is established
Dr Petty cash 440
Cr Cash 440
September 30, petty cash fund expenses
Dr Merchandise inventory 44
Dr Postage expenses 54
Dr Miscellaneous office expenses 144
Dr Cash short and over 10
Cr Petty cash 252
September 30, petty cash fund reimbursement
Dr Petty cash 252
Cr Cash 252
October 1, petty cash fund increased to $485
Dr Petty cash 45
Cr Cash 45
Answer:
L = 0
K = 535.36
Q = 99,577 units
Explanation:
Q = 118L + 186K
Budget line: C = L.PL + K.PK
5,889 = 16L + 11K
This is a linear production function, indicating labor and capital are perfect substitutes. Optimal bundle lies on one of the corner points on isoquant.
From budget line,
When L = 0, K = 5,889/11 = 535.36
Q = 118*0 + 186*535.36 = 0 + 99,576.
96 = 99,577 units
When K = 0, L = 5,889 / 16 = 368.06
Q = 118*368.06 + 11*0 = 45,555.08 + 0 = 45,555 units
So, output is maximized when L = 0 and K = 535.36, since Q = 99,577 units (optimal labor).
Hope this helps!
Answer:
Return on investment = 86.49 %
so correct option is B. 86.49%
Explanation:
given data
Operating income = $1,600,000
Net sales = $13,500,000
Average total assets = $1,850,000
target rate of return = 30%
to find out
company's return on investment
solution
we get here Return on investment that is express as
Return on investment = Operating income ÷ Average total assets .............1
put here value we get
Return on investment = 
Return on investment = 0.86486
Return on investment = 86.49 %
so correct option is B. 86.49%
