If monopolistic competitors must expect a process of entry and exit like perfectly competitive firms, they will be unable to earn higher-than-normal profits in the long run.
<h3>What is a monopolistic competition?</h3>
A monopolistic competition is an industry characterised by many sellers of differentiated goods and services. A monopolistic competition has characteristics of both a monopoly and a perfect competition. A monopolistic competition sets the price for its goods and services. A monopolistic competition makes economic profit in the long run. An example of monopolistic competition are restaurants
A perfect competition is an industry characterized by many buyers and sellers of identical goods and services. Market prices are set by the forces of demand and supply. In the long run, firms earn zero economic profit due to no barriers to the entry and exit of firms.
Here are the options:
A. they will be unable to earn higher-than-normal profits in the short run. O B. they will wish to cooperate to make decisions about what price to charge.
OC. they will wish to cooperate to make decisions about what quantity to produce.
O D. they will be unable to earn higher-than-normal profits in the long run.
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Answer:
The answer is
A: Aggregate price level increases and aggregate output decreases
B. Both aggregate price level aggregate output increases
C. Aggregate price level increases and aggregate output decreases
Explanation:
A. This government action will increase the aggregate price level increases due to inflation. Aggregate output will decrease due to the increase in cost of product (high wage to labor)
B. Because of the increased spending Investment in solar program, both aggregate output and aggregate price level increase.
C. Due to the severe weather destroyed crops, aggregate price level increases and aggregate output decreases. This happened because there will be decrease in supply of crops.
<span>Variances allow the business owner to supervise
their business better by taking well-versed decisions based on how the business
really performed against the budgeted performance. Additionally, it also
highlights reasons or different causes for the disparity in the projected
income or expenses.</span>
Answer: Option A
Explanation: Assets having no physical existence are called intangible assets for example :- goodwill, patent rights.
Amortization can be defined as the method of distributing the value of intangible assets over its useful life, thus for amortization the asset must have a definite life.
While amortizing , first its recoverability is evaluated by comparing fair value with carrying value and after that the difference in both is calculated.
Answer:
$44.18
Explanation:
The price can be easily calculated by the simple formula,
Price of stock = Dividend / (rate of return - growth of dividend)
Hence,
Price of stock = 1.90 / (0.085 - 0.042)
Price of stock = $44.18.
Hope you understand this simple equation
Thanks buddy.