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dybincka [34]
3 years ago
9

All of the following statements about exit in monopolistic competition are true, except: Select the correct answer below: When e

conomic losses induce firms to leave the industry, demand for the original firm decreases. As long as a monopolistic competitive firm is earning positive economic profits, new competitors will continue to enter the market, Even though a monopolistically competitive firm may earn positive economic profits in the short term, the process of new entry will drive down economic profits to zero in the long run. In an environment with monopolistic competition, economic losses induce firms to leave the industry.
Business
1 answer:
Murljashka [212]3 years ago
5 0

Answer:

When economic losses induce firms to leave the industry, demand for the original firm decreases.

Explanation:

A monopolistic competition is when there are many firms selling differentiated products in an industry. A monopoly 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

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Ratification occurs when the principal accepts responsibility for the agent's acts. For ratification to be valid, the agent must
Zinaida [17]

Answer:

The answers are : unauthorized, identified, facts, affirm, authorization, withdraws, observe.

Explanation:

Ratification occurs when the principal accepts responsibility for the agent's unauthorized acts. For ratification to be valid, the agent must have acted on behalf of an identified principal, that principal must know all of the material facts , must affirm the agent's act in its entirety, and must have the legal authorization to ratify the transaction both at the time the agent engages in the act and at the time the principal ratifies it. The principal's ratification must occur before the third party withdraws from the transaction, and the principal must observe the same formalities when ratifying the act as would have been required to authorize it initially.

5 0
3 years ago
If the Dow Jones Industrial Average is 3.2% down that means that: Question 10 options: The stocks of all the companies in Dow Jo
Vera_Pavlovna [14]

Answer:

b). The average value of the 30 blue-chip stocks is down by 3.2%.  

Explanation:

'Dow Jones Industrial Average' also known as 'DJIA' is characterized as the standard indicator to denote the stock-market prices of the shares of the major companies associated with blue-chip in the United States.

As per the question, a down or fall in DJIA by 3.2% would indicate that the stock prices of the companies trading with 'blue-chip' have faced a reduction in their share prices by 3.2% for that day. So, this allows the investors to keep a check on the stock prices and invest accordingly whenever they find it profitable. Thus, <u>option b</u> is the correct answer as the other options fail to convey this idea rather they either talk about the loss of value instead of decrease(in options a and c) or disassociates the entire concept with the stock market(in option d).

5 0
3 years ago
Jerry's supervisor has asked him to revise a memo because his paragraphs are too long. how long should jerry's paragraphs be, on
gavmur [86]
 A memo is a short written type of communication used in formal organizations. Memos should begin with a clear and to the point purpose statement. It is usually recommended that they do not exceed one page in length. A paragraph in a memo should not be longer than three to four sentences. 
4 0
3 years ago
The balance sheet of Innovative Products reports total assets of $570,000 and $770,000 at the beginning and end of the year, res
Makovka662 [10]

Answer:

$201,000

Explanation:

The computation of net cash flows from operating activities is shown below:-

Beginning Total Assets            $570,000

Ending total assets                   $770,000

Average Total Assets in use    $670,000

($570,000 + $770,000) ÷ 2

Cash return on Asset                    30%

Cash Flow from operating activities  

Average Assets × 25%               $201,000

($670,000 × 25%)

Therefore the Cash Flow from operating activities is $201,000

6 0
3 years ago
The start up costs for a project are $25,000. The cost of capital for the firm is 12%. The sum of the present value of the cash
Kobotan [32]

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

6 0
2 years ago
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