Answer and Explanation:
The computation is shown below:
a. The rate of return in percentage is
= return ÷ investment
= $15 ÷ $150
= 10%
b. The economic profit is
= rate of return - normal profit rate
= 10% - 5%
= 5%
c. As the economic profit is more than 0 so it should be the entry
d. The rate of return in the long-run equilibrium to the 5% as the rate of return should be equivalent to the normal rate of profit
An oligopoly is a market form in which a market is dominated by a small number of sellers. For example, as of fourth quarter 2008, Verizon, AT&T, Sprint, and T-Mobile together control 97% of the US cellular phone market. Competition is limited in an oligopoly because barriers to entry are high.The most important barriers are government licenses, economies of scale, patents, access to expensive and complex technology, and strategic actions by incumbent firms designed to discourage or destroy nascent firms.
Answer: To know the amount of tax the business should pay from reported profit which is different from it's actual tax bill
Explanation:
Income tax expense could be described as what is calculated that the company owes in taxes according to accounting rules. They are reported on the income statement.
While Income tax payable is described as the actual amount the company owes in taxes based on the rules of tax code. They appear on the balance sheet of the company accounting documents until the bills are cleared off or paid.
The reason for understanding the difference is to know the amount of tax the business should pay from reported profit which is different from it's actual tax bill
The consumer sector is the largest part of the macroeconomy
TRUE
Answer: (D) Multi-segment targeting
Explanation:
The multi-segment targeting is one of the type of marketing targeting strategy in which an organization is basically decided for providing an effective benefits and offers to each segments in the multi-segment.
The main objective of the multi-segment targeting is that it helps in increase the overall productivity by maximize the sales.
The multi-segment targeting is also known as the differentiated marketing in which the company gains some profit from the consumers.
According to given question, the piper corporation chose the three main specific type of market for targeting the different types of characteristics in an organization.
Therefore, Option (D) is correct answer.
