Answer:
True
Explanation:
A more precise way to describe the situation is that Joe's pizza parlor is a monopolistic competition. But that definition considers that all 'food' items have some degree of close substitute relation.
But yes, if you consider this two conditions:
- a broad definition of monopoly
- other restaurants are not considered close substitutes for the food sold at the pizza parlor
Then yes, Joe has monopoly
Answer:
Utility
Explanation:
In economics satisfaction and pleasure is defined as a utility. When a person drinks water he/she gains utility that is a sense of satisfaction. The most important factor that increases or decreases the demand for a particular commodity is how much utility or satisfaction it provides to the end-user. Overall, the concept was first explained by Jeremy Bentham and John Stuart Mill.
Answer:
$46,000.
Explanation:
To know the retained earnings at the end of 2015, we first need to calculate how much dividend the company will pay to its shareholders then add up the net income in 2015 to the remaining of retained earning at the end of 2014 (after paying 2014's dividend at Mar 2015) to get retained earnings at the end of 2015.
Total dividend in on Mar 2015 = 0.7 x 100,000 = 70,000
Retained Earning at the end of 2015 = 94,000 - 70,000 + 22,000 = 46,000.
Answer:
If MPC is 0.8, Change in GDP = $500 million
If MPC is 0.95, Change in GDP = $2,000 million
Explanation:
<em>Expenditure Multiplier is the amount by which the real GDP will change if autonomous expenditure changes by a given amount.</em>
It is calculated as follows: 1/(1-MPC).
MPC is the portion of additional income that is spent. If the MPC is 0.8, then the expenditure multiplier will be = 1/(1-0.8) = 5
Using the first scenario with an increase in government spending by $100million, the resulting change in GDP would be
Change in GDP = change in autonomous expenditure × Multiplier
= 100 × 5 = $500 million
<em>Scenario 2, MPC of 0.95</em>
Expenditure Multiplier = 1/(1-0.95) = 20
Change in GDP= 100 × 20 = $2000 million
Answer: b. An investor will be able to sell these shares for a higher price and make a profit.
Explanation:
Capital gains are a way to earn a return from owning stock in a company. They involve buying stock at a certain price and then selling the stock when the price increases. The difference between the selling and the buying prices is your capital gain.
This is the benefit to the investor here. If they buy a stock that grows with the company. They will be able to sell at a higher price eventually such that they will make a capital gain.
