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snow_tiger [21]
3 years ago
13

Monopolies can earn positive economic profits in the long run while monopolistically competitive firms cannot due to

Business
1 answer:
inessss [21]3 years ago
4 0

Answer:

barriers to entry in monopoly but not in monopolistic competition.

Explanation:

Imagine a situation where a monopolistically competitive firm is doing very well and is able to earn economic profit (profits higher than normal) in the short run. Since this company is earning higher than normal profits, other companies will enter the market and start competing against them hoping to get a piece of that abnormally high gain. As more competitors enter the market, economic profits will start to decrease until finally they are eliminated.

Since monopolies do not face competition, they can earn economic profits in the long run.  

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Gabriele Enterprises has bonds on the market making annual payments, with eight years to maturity, a par value of $1,000, and se
iVinArrow [24]

Answer:

Coupon rate = 5.8%

Explanation:

The price of a bond is the present value (PV)  of the future cash flows discounted at its yield.

So we will need to work back to ascertain the coupon rate

Step 1

<em>Calculate the PV of redemption value and PV of interest payments</em>

<em>PV of Redemption </em>

= 1.067^(-5) × 1000

=723.06

<em>PV of the annual interest rate</em>

= price of the bond - PV of redemption

= $964- 723.06

= 240.934

Step 2

<em>Calculate the interest payment</em>

Interest payment = PV of redemption value / annuity factor

Annuity factor =( 1 -(1+r)^(-n) )/r

<em>Annuity factor at 6.7% for 5 years</em>

Factor =( 1-1.067^(-5) )/0.067

          = 4.1333

Interest payment =  <em>PV of the annual interest rate</em> / Annuity factor

Interest payment=

=240.93/4.1333

=58.290

Step 3

<em>Calculate the coupon rate</em>

Coupon rate = interest payment/ par value

Coupon rate = (58.290/1000) × 100

= 5.8%

Coupon rate = 5.8%

4 0
3 years ago
Why might a company that sells advanced lighting systems include a technical specialist on its sales teams?done
erik [133]
I think the answer is C
7 0
2 years ago
Examples of transaction costs include ​(check all that​ apply): A. the cost of the externality. B. the cost of monitoring an agr
Paha777 [63]

Answer:

The correct answer is option B, C, and E.

Explanation:

Transaction cost refers to the cost incurred on resources and time necessary for facilitating exchange of goods and services.

Among the given options, the examples of transaction cost is cost of monitoring an agreement, the cost of drafting a contract or agreement, and the time required to negotiate an agreement.

All these costs are incurred in order to facilitate exchange of goods and services.

The problem of externalities can have efficient private solution if these transaction costs are low otherwise the governement has to intervene to efficiently allocate resources.

3 0
3 years ago
I wanna know about debit and credit full explanation ​
BigorU [14]

Answer:

Explanation:

A debit is an entry made in an account. It either increases an asset or expense account or decreases equity, liability, or revenue accounts.

A credit is an entry  alsom made in an account. It either increases equity, liability, or revenue accounts or decreases an asset or expense account.

7 0
2 years ago
Read 2 more answers
Assuming P≥0, suppose that a population develops according to the logistic equation ????P/????????=0.07P−0.00014P2 where ???? is
Natasha2012 [34]

Answer:

A complete description of the problem and solutions to each point are given below.

Explanation:

The Logistic Growth model of a population is defined as follows:

                                   dP/dt = kP (1 - P/M) (1)

Where:

dP/dt is the population growth rate.

k is the maximal individual growth rate for a given population

P is the number of individual in the population

M= carrying capacity of the population.

In the problem this first order derivative ecuation is given by

                               dP/dt= 0,07P - 0,00014P² (2)

So, we can factorize ecuation (1) and compare it with (2) to find the carryng capacity and k value (questions 1 and 2).

                                        kP (1 - P/M) = 0,07P - 0,00014P²

                                        kP - (k/M)P² = 0,07P - 0,00014P²

Here kP = 0,07P ⇒ k = 0,07 (answer to question 2)

Then, (k/M)P² = 0,00014P²⇒ (k/M) = 0,00014 and given that k= 0,07

⇒ 0,07/M = 0,00014 ⇒ M = 0,07/0,00014 ⇒ M=500 (answer to question 1)

Finally to find for which values of P is the population increasing/decreasing, we have to find the values at which dP/dt is zero. Analyzing the equation as a quadratic function (applying Baskara´s equation) we find that the values at which dP/dt is zero are P= 0 and P = -1.

x = [-0,07 ± √(0,07²)]/ 0,14 ⇒ x=  [-0,07 ± 0,07)]/ 0,14 ⇒ x = 0 and x= -1.

Then the vertex here is P = -0,5.

Now we can state that for P greater than - 0,5 the population is decreasimg (question 4), while for values from -∞ to - 0,5 the population is increasing (question 3).

Summarizing, given the first order derivative, the carrying capacity of the population is 500, the value of k is 0,07, the values of P for which dP/dt is positive (incresing population) are those comprised in the range (-∞, -0,5) and those for which the population is decreasing are (-0,5,∞).

3 0
3 years ago
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