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3 years ago

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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Please think of one example of a product that you use on a regular basis for which some of the cost of production or consumption

Lelu [443]

Answer and explanation:

Externalized costs are costs that the society pays that are generated by producers and the consumers of the product. The common example is the use of petrol. If I own a car and I don't like riding bicyle for smaller distances, this means the Carbon dioxie emission caused due to me have to be born by the society. This means that the net effect would be a loss to society caused by the usage of products that are injurious to our ecosystem.

UK has targeted to achieve zero Carbon dioxide emission by 2050, which shows their commitment to social responsibility and we keep dumping things in the oceans because nobody acknowlegdes the damage caused by using plastic made products and also not recycling it. After plastic into the oceans the marine life suffers. The Carbon Dioxide emission is one of the main reasons why the glaciers are melting and many animals are dying annually. We unaware with our responsibilities to our society and love profits no matter if someone dies or get harmed by the operations of the company or using products that have greater externalized costs.

7 0

3 years ago

Read 2 more answers

Required: 1-a. Prepare a contribution format income statement for the game last year. 1-b. Compute the degree of operating lever

Flura [38]

Question Completion:

Magic Realm, Inc., has developed a new fantasy board game. The company sold 32,400 games last year at a selling price of $67 per game. Fixed expenses associated with the game total $567,000 per year, and variable expenses are $47 per game. Production of the game is entrusted to a printing contractor. Variable expenses consist mostly of payments to this contractor. Required: 1-a. Prepare a contribution format income statement for the game last year. 1-b. Compute the degree of operating leverage. 2. Management is confident that the company can sell 41,796 games next year (an increase of 9,396 games, or 29%, over last year). Given this assumption: a. What is the expected percentage increase in net operating income for next year?

Answer:

Magic Realm, Inc.

1-a. Contribution-Format Income Statement

For the last year ended December 31

Sales revenue $2,170,000 (32,400 * $67)

Variable costs 1,522,800 (32,400 * $47)

Contribution $647,200 (32,400 * $20)

Fixed expenses 567,000

Net operating income $80,200

1-b. Degree of Operating Leverage = Contribution/Net operating income

= 8.07

The expected percentage increase in net operating income for next year

= 235.3%

Explanation:

a) Data and Calculations:

Last year's figures:

Sales = 32,400 games

Selling price per game = $67

Variable cost per game = $47

Fixed expenses = $567,000 per year

1-a. Contribution-Format Income Statement

For the last year ended December 31

Sales revenue $2,170,000 (32,400 * $67)

Variable costs 1,522,800 (32,400 * $47)

Contribution $647,200 (32,400 * $20)

Fixed expenses 567,000

Net operating income $80,200

1-b. Degree of Operating Leverage = Contribution/Net operating income

= $647,200/$80,200 = 8.07

2. Next year:

Sales = 41,796 games

Sales revenue = $2,800,332 (41,796 * $67)

Variable cost = 1,964,412 (41,796 * $47)

Contribution = $835,920

Fixed costs = 567,000

Net operating income $268,920

The expected percentage increase in net operating income for next year

Increase in net operating income = $188,720 ($268,920 - $80,200)

= $188,720/$80,200 * 100 = 235.3%

5 0

3 years ago

Susan bought a new sweater on sale for dollar 28.93.she was charged HST of 13%.find the total amount of her bill including taxes

Leya [2.2K]

Answer:

The answer is 32.69$.

Explanation:

The Sale price of sweater was $28.93, to add 13% HST we need to multiply 28.93 by 13 % & add 28.93 to it.

8 0

3 years ago

Tim is a single, cash-method taxpayer with an AGI of $50,000. In April of this year, Tim paid $740 with his state income tax ret

oksano4ka [1.4K]

Answer: $5960

Explanation:

Based on the analysis and the information provided in the question, the amount of taxes that Tim can deduct as an itemized deduction will be the addition of the Tim's state income tax return for the previous year, the state tax that was held during the year and the estimated state tax payment. This will be:

= $740 + $4200 + $1020

= $5960

Therefore, the amount of taxes that Tim can deduct as an itemized deduction will be $5960.

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3 years ago

_____ is a teamwork skill that salespeople must apply in the process of building internal partnerships.

Brut [27]

<span>Teamwork is a must necessary for any kind of business setup to grow. Salespeople have to build internal partnerships through teamwork by understanding the other team members and clarifying expectations. Fulfilling the commitments and focusing on little things too also help in achieving the goals. They must attend to the little things if they want to succeed.</span>

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3 years ago