All categories

3 years ago

The reason that the "fast-casual" restaurant market is monopolistically competitive rather than perfectly competitive is because

2 answers:

5 0

A market which is monopolistically competetive has an imperfect competition and characterized with many producers that sell products that are differentiated from one another. Because of this there are not perfect substitutes.
So, the reason that the "fast-casual" restaurant market is monopolistically competitive rather than perfectly competitive is because products are differentiated.

lord [1]3 years ago

5 0

The reason that the “fast-casual” restaurant market is monopolistic competitive rather than perfectly competitive because the products are differentiated.

Further Explanation:

Fast-casual restaurant:

The fast-casual restaurant is a type of restaurant that advertises the good quality food and has a product differentiated. It is midway between fast food and casual dining. This type of restaurant does not provide full table service. They are just offering good quality food and have low processed ingredients.

Monopolistic competitive:

A competitive refers to a type of competition in the market, in which only one seller sells the product in the market. In this type of competition, the product is differentiated. That's why the seller sells the product in the market at higher prices and earns a maximum profit.

Perfectly competitive:

Perfectly competitive is a type of competition in the market, in which there is no barrier to entry and exit in the market. The product is homogenous, and all the sellers reap the same amount of profit. In a long period, there is no profit.

Monopolistic competition is the reason behind the fast-casual restaurant considered as a monopolistically competitive rather than perfectly competitive market.

Learn more:

1. Learn more about monopolistic competition

brainly.com/question/7103791

2. Learn more about a competitive market

brainly.com/question/11095403

3. Learn more about cartel

brainly.com/question/1619397

Answer details:

Grade: Middle School

Subject: Economics

Chapter: Competitive market

Keywords: fast-casual restaurant, monopolistically competitive, rather than a perfectly competitive market, product, differentiated, fast food,casual dining.

You might be interested in

There are 8 kinds of sewing machine. Are all of them are used for constructing a garment? Why?

qaws [65]

No, they can be used for mechanical uses

5 0

2 years ago

Crowl Corporation is investigating automating a process by purchasing a machine for $802,800 that would have a 9 year useful lif

puteri [66]

Answer:

Simple rate of return = 6.25%

Explanation:

As per the data given in the question,

Net operating income = saving - depreciation on machine

Investment = cost price - scrap value

So, we can calculate the simple rate of return by using following formula:

Simple rate of return = Net operating income ÷ investment

By putting the value, we get

= ($138,000 - $89,200) ÷ ($802,800 - $22,200)

= 0.0625

= 6.25%

7 0

3 years ago

Sheldon and Morton formed a partnership with capital contributions of $80,000 and $40,000, respectively. Their partnership agree

Anastaziya [24]

Answer:

The answer is:

Sheldon: $39, 500; Morton: $50, 500

Explanation:

A partnership is a binding agreement between two or more parties to carry on a business. The sole purpose of this agreement is to share skills and expertise so as to generate a profit. In a partnership, the partners have unlimited liability meaning that if the business established by the partners in unable to repay creditors, the creditors are legally allowed to seize the personal assets of the partners to cover the debts owing. However, in accounting for financial performance, the business is considered to be a separate entity (exists independent of the partners). Sheldon and Morton have established a profit-sharing arrangement that compensates Sheldon for the capital contribution (larger interest share) and Morton for his contributions to the business operations (larger salary share). The profit after these deductions is shared equally between the 2 partners. Assuming the given net income is after operations but before partner deductions, the share of the partners is calculated as follows:

Sheldon Morton

Interest $8,000 $4,000

Salaries $10,000 $25,000

Profit share $21, 500 $21, 500

Total share $39, 500 $50, 500

Interest (10% * $80, 000) (10% * $40, 000)

Profit share (50% * $43,000) (50% * $43,000)

Net Profit Share: $90, 000 - $(8,000 + 10,000 + 4,000 + 25,000)= $43,000

8 0

3 years ago

Stock and bond markets:

olga_2 [115]

Stock markets is a stock exchange and a bond market is where dept securities are issues and traded

8 0

3 years ago

profit maximization pricing objective a. is a status quo oriented pricing objective. b. is a sales-oriented pricing objective. c

nika2105 [10]

Answer:

e. does not always lead to high prices.

Explanation:

Profit-maximization pricing means fixing prices so that total revenue is more as compared to total costs. This pricing strategy is used by a monopolist.

It is the short run or long run process by which the price and output level is determined by the firm that can give the maximum profit.

The price per item has been set higher than its total cost of production make to sure that the company makes a profit on each sale. As a result, the company makes a profit on every sale and to reduce risk and uncertainty factors in business operations.

Profit maximization pricing objective does not always lead to high prices.

5 0

3 years ago