Answer: Option (A) is correct.
Explanation:
Correct Option: Normal profits because economic profits will attract new firms and there are no entry restrictions.
In a monopolistically competitive market, firms will earn an economic profit in the short run, so new firms attracted with these profits and decided to enter into the market in the long run.
There is no barriers on entry and exit of the firms in the monopolistically competitive market. When new firms enters into the market, as a result supply of differentiated products increases.
This causes the firm's market demand curve to shift leftwards. It will continue shifting to the left in the firm market demand curve till the point where it is nearly tangent to the average total cost curve.
At this point, firms earns zero normal profit and can earn normal profits in the long run same as a perfectly competitive firm.
Answer:
Deferred tax is increased by $130 million
Explanation:
We have given income = $400 million
Company is subject to a tax rate of 40 %
So tax rate = 40 %
So current Tax = $400×40%= $160 Million
Decrease in deferred tax assets of 50 million result in increase in tax expense
Hence total Tax Expense= $160+$50= $210 Million
But it is given that expense is only $80 million
So change in deferred tax is increases by = $210 - $80 = $130
So deferred tax is increases by $130 million
You should give her the rest of the change when she returns, but mention it to the manager immediately. The manager should know what happened.
<span>The results of the study may not represent the whole population, especially when 32 respondents came from the same place. It would be more ideal to get hundreds of respondents from each state and of different backgrounds to show that the results of the survey were legitimate instead of the results possibly being influenced by a different environmental aspect.</span>
