Answer:
number of delis will eventually increase.
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
The deli industry in the town is still earning economic profit because it is producing the quantity that minimizes average total cost. Therefore, in the long run, more firms would enter in the industry.
Answer:
$0.68
Explanation:
Multiply each possible prize by its likelihood and add the results in order to obtain the expected value (Note that there is a 100% of losing 0.57 cents since that is the cost of entry):
The expected value of the amount won for one entry if the cost of entering is 57 cents is $0.68
Answer:
net present value = $1,420.14
Explanation:
given data
start up costs = $25,000
cost of capital = 12%
present value of the cash flows = $26,420.14
solution
we get here net present value will be express as here
net present value = present value of the cash flows for the first three years - start up costs ........................1
put here value and we get
net present value = $26,420.14 - $25,000
net present value = $1,420.14
It should be Joe and ISADORA and it should be ISADORA 37 and Joe 48
Answer:
$77,152.90
Explanation:
The computation of the future value is shown below:
Given that
Yearly cash flows
$12,900
$16,300
$18,600
$19,800
Discount rate = 10%
Time period = 4 years
So, the future value of these cash flows is
= $12,900 × (1.1)^3 + $16,300 × (1.1)^2 + $18,600 × (1.1)^1 + $19,800
After solving this the amount came is
= $77,152.90