Answer:
Because this market is a monopolistically competitive market, you can tell that it is in long-run equilibrium by the fact that P = ATC, P>ATC, MR =MC, or MR>MC at the optimal quantity. Furthermore, the quantity the firm produces in long-run equilibrium is the efficient scale. True False
This indicates that there is a markup on marginal cost in the market for shirts. True False
Explanation:
In the long run, monopolistically-competitive entities produce at a level where marginal cost and marginal revenue are equal. This makes it impossible for individual companies to sell their products at prices above the average cost. This situation means that monopolistically-competitive companies will always earn zero economic profit in the long run.
The person then concludes that falling consumer prices leads to economic growth. This would be an example of <u>"Confusing correlation and causation".</u>
Correlation is the connection between two sets of variables used to depict or anticipate data. There is an emphasis here on relationship. Sometimes we can utilize relationship to discover causality, however not generally. Keep in mind that connection can either be certain or negative.
Causation, otherwise called cause and effect, is the point at which a watched occasion or activity seems to have caused a second occasion or activity.
What Happens When the Fed Raises Rates?
——> When the Fed raises the federal funds target rate, the goal is to increase the cost of credit throughout the economy.
The best answer in the space above is the extensive decision
making, as this is the one responsible of having consumers to be associated and
to have a part of high involvement. This is where consumers provide decisions
in which they think is right for them as consumers in relation with the
products they buy and brands or products that would be of benefit and would be
of likeness to them.
Answer: The following journal entries would apply:
<u>Purchase of franchise:</u>
Debit: Restaurant franchise (intangible asset) $85,000
Credit: Cash $85,000
<u>Amortization of franchise:</u>
Debit: Amortization charge $708
Credit: Accumulated amortization $708
Explanation: When the franchise was purchased, there was a cash outflow. So the above first entries would apply in order to recognize the intangible asset in Frazier Company's books. However, the intangible was meant to be amortized over 10 years, meaning $85,000/10 years = $8,500 annual amortization charge. We still have to divide this by 12 in order to arrive at the monthly amortization charge. So $8,500 divided by 12 months = $708 monthly. The above entries apply on amortization.