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statuscvo [17]
3 years ago
7

Verslas is a firm operating in a monopolistically competitive market. It is currently maximizing profit with an output of 1,200

units and a price of $5. Based on this information, which of the following statements must be true?
a. Verslas could not sell more units by lowering its price.
b. Verslas is earning normal profit.
c. Verslas is earning $3,600 in profit.
d. Verslas has a marginal revenue less than $5.
e. Verslas has a marginal revenue greater than $5.
Business
1 answer:
Marina86 [1]3 years ago
3 0

Answer:

b

Explanation:

A monopolistic competition is when there are many firms selling differentiated products in an industry. A monopolistic competition has characteristics of both a monopoly and a perfect competition. the demand curve is downward sloping. it sets the price for its goods and services.

An example of monopolistic competition are restaurants  

When firms are earning positive economic profit, in the long run, firms enter into the industry. This drives economic profit to zero

If firms are earning negative economic profit, in the long run, firms leave the industry.  This drives economic profit to zero

in the long run, only normal profit is earned

If Verslas is producing at a profit maximising point, it means that marginal revenue equal marginal revenue and the firm is earning a normal profit

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Answer:

The answer is below

Explanation:

Education is considered the basic requirement for the profession because, through education, people get to learn the basic knowledge required to perform a profession.

For example, a medical doctor or physician profession requires education in core biological science subjects such as microbiology, human anatomy, medical rehabilitation, dentistry, etc.

Education gives the professional the knowledge to anticipate, predict, and carry out the right solution to any problem that needs to be solved under his or her profession.

For example, a civil engineer needs education in architectural and engineering drawing to translates the drawing into reality or an actual project.

5 0
3 years ago
Accounting about Stockholders' Equity? 1. Common stockholders usually have all of the following rights except: a) To receive div
lisov135 [29]
1. D. to participate in the day-to-day operations.
Let's say that you buy a stock for microsoft, it doesn't make you able to come to their offices and help them handling the customers.

2. C. the risk of bankrupt is less
when you sell your company's stock to other buyers, that buyers will also take the risk from all your company's activity because technically they own a part of your company, which make the risk of going bankrupt is less, but you surrender a part of ownership of your company

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Where a company liquidates its assets, they will distribute the payment to all the holders of preferred stock first.

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Hope this helped you out

8 0
3 years ago
Which of the following best describes a subsidy​? A. Banks make​ low-interest loans to farmers. B. The government puts a tax of​
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Answer:

C. The government pays farmers​ $100 per ton of wheat produced.

Explanation:

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Bank's low interest rate to farmers is just credit ease policy ; Govt putting a tax on wheat imports is opposite of subsidy ; Farmer paying govt $100 per unit wheat is also a form of tax (opposite to subsidy).

3 0
3 years ago
The next dividend payment by Dizzle, Inc., will be $2.48 per share. The dividends are anticipated to maintain a growth rate of 4
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Answer:

Cost of equity   = 10.7%

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<em>The model can me modified to determined the cost of equity as follows:</em>

Cost of equity = D/P  + g

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Cost of equity = (2.48 /39.85) + 0.045

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