<u>Solution and Explanation:</u>
(a). Firm in perfect competition produces at minimum efficient scale, MEC where average cost AC is minimum. The price is determined by the market supply and demand.
(b) Note that q1 is at the minimum of AC while Q* is to the left of q1. Similarly, P1 is equal to MC while P* is higher than MC. This shows that firms in perfect competition produce more and charge less than the firms in monopolistically competitive market.
(c) All firms in monopolistically competitive market as well as perfectly competitive market earn zero economic profit in the long run. This is because there is a free entry and exit
(d) Demand is steeper for firms in monopolistically competitive market so that demand is elastic. Demand is horizontal for any quantity which means it is perfectly elastic for a firm in competitive market.
Answer:
See explanation section
Explanation:
See the following images to get the appropriate answer.
QUESTION:- If the country was experiencing high inflation, the Federal Reserve could _____________________ to help slow down the growth & make the economy stable.
ANSWER:- D) decrease spending AND increase taxes
HOPE IT HELPS YOU.
Answer:
Dr. Cash $3,549,590
Cr. Premium on Account Receivable $649,590
Cr. Bond Payable Account $2,900,000
Explanation:
The difference between the face value of the bond and the sale value of the bond is known as premium or the discount on the bond. If the face value is higher from the sale value the bond is issued on the discount and if the sale value of the bond is higher than the face value the bond is issued on the premium.
Premium on the Bond = Face value - Sale value = $3,549,590 - $2,900,000 = $649,590
The Premium will be amortized during the life of the bond to maturity and deducted from the interest expense.
