Demand and marginal revenue curves are downward-sloping for monopolistically competition firms because: a. product differentiation allows each firm some degree of monopoly power.
<h3>What is product differentiation?</h3>
Product differentiation can be defined as what makes a product to different from another product which is why some producer tend to include a unique features in their so as to make their product distinct from that of others.
A monopolistic competitive firms can tend to face a downward - sloping demand curve based on the fact that it help to differentiate their product from that of others competitors.
Therefore the correct option is A.
Learn more about Product differentiation here: brainly.com/question/8107956
#SPJ1
The complete question is:
Demand and marginal revenue curves are downward-sloping for monopolistically competition firms because...
a)product differentiation allows each firm some degree of monopoly power
b)there are a few large firms in the industry and they each act as a monopolist
c)mutual interdependence among all firms in the industry leads to collusion
d)each firm has to take the market price as given
Answer:
a. Dr goodwill; credit building for $8,000,000
Explanation:
Goodwill refers to excess of purchase consideration over net assets value of an entity in case of acquisition.
Goodwill is an intangible asset which is recorded as follows on the date of acquisition.
Journal entry for Goodwill is;
Goodwill A/C Dr
Net Assets Acquired Dr.
To Purchase Consideration
(Being goodwill recorded)
In the given case, building was acquired for $15,000,000 against it's fair value which was only $7,000,000. The excess price paid for such acquisition represents goodwill which shall be recorded as;
Goodwill A/C ($15,000,000- $7,000,000) Dr. $8,000,000
To Building $8,000,000
(Being goodwill recorded)
Answer:
The answer is letter D
Explanation:
Under a P system, an order is placed to replenish the inventory position up to the target level T every P time periods.
Answer:
Portugal and Austria
Comparative Advantage in the Production of Beer and Cheese:
1a. Portugal
b. Austria
2. a. 3 barrels and
b. 0.09 or 1/11 pounds
3. A. 4 barrels of beer per pound of cheese
Explanation:
a) Data and Calculations:
Portugal's opportunity cost of producing a pound of cheese = 3 barrels of beer
Austria's opportunity cost of producing a pound of cheese = 11 barrels of beer
Price of trade (cheese in terms of beer) = 11/3 = 3.667 = 4
b) Portugal's comparative advantage over the production of cheese is her economy's ability to produce cheese at a lower opportunity cost than Austria. This comparative advantage gives Portugal the ability to sell cheese at a lower price than Austria and realize a more favorable balance of trade.
