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dybincka [34]
2 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]2 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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Answer:

Fixed inventory costs are treated in the same manner as they are under variable costing.

Explanation:

As we know that

The variable costing includes all the variable cost i.e direct material cost, direct labor cost and variable manufacturing overhead cost

While on the other hand the absorption costing is the costing in which all the cost i.e fixed cost and the irascible cost are considered

So the first option is not true as it should not be treated in the same way under both costing methods

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3 years ago
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Alex is using a plug figure which will ensure that the plan for next year is internally consistent with a plan to identify the sources of financing for all assets that will be needed.

<h3>What is a balance sheet?</h3>

It should be noted that a balance sheet simply means a financial statement that shows the financial status of a company.

In this case, Alex is using a plug figure which will ensure that the plan for next year is internally consistent with a plan to identify the sources of financing for all assets that will be needed.

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4 0
1 year ago
Which services would a charitable organization provide? Check all that apply. preserving waterways operating a city aquarium ope
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3 years ago
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When a tactics is harmful causing various harms to human health or posing threat it should not be supported.

<h3>What are Harmful tactics?</h3>

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This actions are harmful and the results are usually detrimental.

Therefore, U.S. government should not support U.S. tobacco company interest abroad if they are using harmful tactics.

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