All categories

4 years ago

Why do monopolistic firms exhibit excess capacity?

Business

1 answer:

Sonja [21]4 years ago

7 0

Answer:

Excess capacity under monopolistic competition is caused by product differentiation that leads to product variety and quality, which is beneficial to consumers. Consumers generally do not prefer homogenous products. Technically, excess capacity increases consumer satisfaction.

Explanation:

(hope this helps)

You might be interested in

In the components of a business plan, what section contains a detailed description of the company, the problem/opportunity, prop

dimaraw [331]

In the components of a business plan, the section which contains a detailed description of the company, the problem/opportunity, proposed solution to be offered, and your competitive advantage is "Financial Projections section"

<h3>What is Financial Projections?</h3>

Financial predictions forecast your company's future revenues and expenses using existing and estimated financial data.

They frequently contain many scenarios so you may see how adjustments to one part of your finances (for example, increased sales or reduced operational expenses) may affect your profitability.

Financial predictions are an important tool for business planning for a variety of reasons.

Financial predictions assist you in setting your beginning budget, determine when you may anticipate the business to be become profitable, or set benchmarks for meeting financial goals if you're starting a business.
If you currently have a firm, making annual financial projections can assist you in setting goals and keep on target.
Both startups and current firms will require financial estimates when seeking outside finance to convince investors and lenders of the business's development potential.

To know more about the financial projections, here

brainly.com/question/21773027

#SPJ4

5 0

2 years ago

Money markets are markets for_________.

Mila [183]

Answer:

e. Short-term debt securities such as Treasury bills and commercial paper.

Explanation:

The money market is a branch of financial markets that trade in short-term, high liquidity debt instruments. The money markets create an opportunity for investors and borrowers to buy and sell different types of short term financial securities. The short-term securities maturity period ranges from one day to less than 12 months.

The securities that trade in market markets are called money market instruments. They include commercial papers, Eurodollar deposits, treasury bills, federal agency notes, and certificates of deposit. The money markets are important because they enable companies with temporary financial shortfalls to borrow money by selling money market instruments. They also give companies with cash surplus a platform to invest and earn interests.

8 0

3 years ago

The rule preventing recovery for reasonably avoidable damages is often called the duty to mitigate. True or false

Degger [83]

Answer:

True

Explanation:

In contract law and civil law, the duty to mitigate damages refers to the duty that the individual responsible for the wrongdoing must carry out to limit the harm or injury caused by him/her. The duty to mitigate applies both for contract breaches and victims or torts.

3 0

3 years ago

If major earthquakes occur along active segments of the san andreas fault about every 200 years, when can another major event be

Aleonysh [2.5K]

It should generate another major event around 2050-2060

8 0

3 years ago

2700 thousand bonds with a face value of $1000 each, are sold at 106. The entry to record the issuance is

IceJOKER [234]

Date, bonds sold at a premium

Dr Cash $28620000000

Cr Bonds payable $2,700,000,000

Cr Premium on bonds payable $1,62,000,000

Explanation:

The total face value of the bonds is $1,000 x 2700,000 bonds = $2,700,000,000

since the bonds were sold at 106, their price was =

$2,700,000,000 x 106% = $28620000000

the difference between the face value and the actual market price = $2,862,000,000 - $2,700,000,000 = $1,62,000,000 must be recorded as premium on bonds payable (increases the bonds' carrying value)

<h3>What is the difference between market value and face value?</h3>

The market value is the actual price at which the security trades on the open market, as well as the price that fluctuates when the yield reacts to changes in interest rates.

The face value is determined by the issuing company. It may be the value at which the firm redeems the shares at some point in the future, but there is no guarantee.

Learn more about date and the interest expense:

brainly.com/question/20038664

#SPJ4

7 0

2 years ago