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Svetlanka [38]
3 years ago
12

One difference between a monopoly and a competitive firm is that A. a monopoly faces a downward sloping demand curve. B. a monop

oly is a price taker. C. a monopoly maximizes profit by setting marginal revenue equal to marginal cost. D. None of the above.
Business
1 answer:
AnnZ [28]3 years ago
6 0

Answer:

A. a monopoly faces a downward sloping demand curve.

Explanation:

In business, it is seen to occur because they have no competition, monopolists have no incentive to improve their products. A lot of their focus is instead placed on maintaining monopolistic conditions through bribing their way and other tactics that dissuade competitors from entering the market.

 Demand curve slopes downward, this is said to decreases with each unit of production beyond the profit maximizing quantity and in the eyes of the monopolist, cash is lost with each additional unit been produced, causing marginal cost exceeds marginal revenue. This causes the restricted output and higher costs that characterize products produced by monopolists.

Because the demand curve slopes downward, marginal revenue decreases with each unit of production beyond the profit maximizing quantity. Thus, the monopolist loses money with each additional unit produced, as marginal cost exceeds marginal revenue.

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3 years ago
Trey owns 250 shares of common stock in a toy–store company. this means that he owns a percentage of the company based on the pr
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3 years ago
The Step Company has the following information for the year just ended: Budget Actual Sales in units 15,000 14,000 Sales $ 150,0
alekssr [168]

Answer:

$7,000 Favourable

Explanation:

Calculation to determine what The Step Company's sales-price variance is:

Using this formula

Sales Price Variance = (Actual Sales Price – Budgeted Sales Price) * Actual Sales Volume

Let plug in the formula

Sales Price Variance=[($ 147,000÷14,000)-(150,000/15,000)]*14000

Sales Price Variance = ($10.5 – $10) * 14000

Sales Price Variance = $7,000 Favorable

Therefore The Step Company's sales-price variance is: $7,000 Favorable

The Step Company has the following information for the year just ended: Budget Actual Sales in units 15,000 14,000 Sales $ 150,000 $ 147,000 Less: Variable Expenses 90,000 82,600 Contribution Margin $ 60,000 $ 64,400 Less: Fixed Expenses 35,000 40,000 Operating Income $ 25,000 $

5 0
3 years ago
A careful analysis of the cost of operating an automobile was conducted by a firm. The following model was​ developed: Modifying
kenny6666 [7]

Answer:

a. 7,000

b. 9,000

Explanation:

The model developed is correctly stated as follows:

y = 4,000 + 0.2x .................................... (1)

​a) If the car is driven​ 15,000 miles this​ year, the forecasted cost of operating this automobile ls ​(enter your response as a whole​ number)

When x = 15,000, we substitute this into equation (1) and calculate y as follows:

y = 4,000 + 0.2(15,000) = 4,000 + 3,000 = 7,000

Therefore, the forecasted cost of operating this automobile ls $7,000 when the car is driven​ 15,000 miles this​ year.

​b) If the car is driven​ 25,000 miles this​ year, the forecasted cost of operating this automobile is ​(enter your response as a whole​ number).

When x = 15,000, we substitute this into equation (1) and calculate y as follows:

y = 4,000 + 0.2(25,000) = 4,000 + 5,000 = 9,000

Therefore, the forecasted cost of operating this automobile ls $9,000 when the car is driven​ 25,000 miles this​ year.

Comparing the answers obtained in (a) and (b) above, we can see that the higher the number of miles the car is driven, the higher is the operating cost. This implies that there is a positive relationship between the number of miles the car is driven and its operating cost.

5 0
3 years ago
What would be the impact on the supply curve of oil if a major oil producing country banned all exports to the United States of
jarptica [38.1K]

Answer:

The supply curve would shift to the right(upwards)

Explanation:

This is because there would be less oil available but the same demand and so the price for the same amount of oil will increase.

hope this helps!

3 0
3 years ago
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