1answer.
Ask question
Login Signup
Ask question
All categories
  • English
  • Mathematics
  • Social Studies
  • Business
  • History
  • Health
  • Geography
  • Biology
  • Physics
  • Chemistry
  • Computers and Technology
  • Arts
  • World Languages
  • Spanish
  • French
  • German
  • Advanced Placement (AP)
  • SAT
  • Medicine
  • Law
  • Engineering
Firdavs [7]
2 years ago
9

Assume that in a monopolistically competitive industry, firms are earning economic profit. This situation will:

Business
1 answer:
forsale [732]2 years ago
6 0

Answer:

attract other firms to enter the industry, causing the existing firms' profits to shrink.

Explanation:

Monopolistic competition can be defined as an imperfect competition where many producers or organizations sell differentiated products that are not perfect substitutes. Examples of firms or organizations engaging in a monopolistic competition are restaurants, shoes, clothing lines etc.

Generally, a monopolistic competitive market is characterized by the presence of large numbers of firm (producers) and a very low entry barrier.

Hence, in a monopolistic competition, firms have a degree of control over price, make independent decisions and can freely enter or exit the market in the long-run. Therefore, these firms combine elements of both monopoly and competition.

When a monopolistically competitive firm is in long-run equilibrium marginal revenue is equal to marginal cost (MR = MC) . This ultimately implies that in the long-run, firms engaging in monopolistic competitive market are often going to manufacture the quantity of goods where the marginal cost (MC) curve intersect with the marginal revenue (MR). Also, the price set would be greater than the minimum average total cost (ATC).

Hence, assuming that in a monopolistically competitive industry, firms are earning economic profit. This situation will attract other firms to enter the industry, causing the existing firms' profits to shrink.

You might be interested in
Which of the following employees has the largest gross pay? a. Employee A: Total employee benefits $1,500 Total job benefits $49
Fiesta28 [93]

Answer:

<h2>Employee D has the largest gross pay among all the four employees.</h2>

Explanation:

Gross pay is normally calculated by taking the sum or aggregation of the basic salary or direct job related benefits and any additional employee benefits obtained by the employee from the company.

Therefore,for employee A,total gross pay=(49,800+1500)=51,300 dollars

For employee B,total gross pay=(51,200+1050)=52,250 dollars

For employee C,total gross pay=(51,900+1000)=52,900 dollars

For employee D,total gross pay=(52,300+3000)=55,300 dollars

Therefore,based on the above calculations of gross pay of all the employees,employee D has the highest or largest gross pay which is $55,300.

4 0
3 years ago
Read 2 more answers
In what way does the kettle falls five case illustrate a weakness of a federal system? choose the best answer.
almond37 [142]

The kettle falls five case illustrate a weakness of a federal system in such a way that f<span>ederalism limits political power and that it depends on compliance of state.</span>
<span>The federal system also aggravates the efficiency in awareness of Policies and its implementation. The kettle falls five case was very surprising.</span>

6 0
3 years ago
A moderately-priced jewelry store is trying to differentiate itself from other jewelry stores. The store prices products somewha
AlekseyPX

Answer:

The correct answer is: monopolistic competition.

Explanation:

There is monopolistic competition in markets that have many companies offering similar products or services. Restaurants, grocery stores, and clothing stores, for example. Such similar products and services are not ideal substitutes for each other. In these industries the barrier to entry and exit is low.

8 0
3 years ago
OSHA is an acronym that represents:
Svetach [21]
Your answer would be D.) Occupational safety and health administration 

5 0
3 years ago
On Monday, the regular price of a widget was discounted by 25 percent. On Tuesday, the reduced price was discounted by 50 percen
Anvisha [2.4K]

Answer:

<u>The Regular Price was $112.50</u>

Explanation:

On Monday- Discounted -25% from original price

On Tuesday- Discounted -50% from the price from "Monday"

I am going to multiply

60 x 0.25 = $15

$15 was discounted from the original price so you should add it to 60

the price is 75 now. Next

We need to multiply 75 x 0.50 = $ 37.5

We do the same and add $37.5 to $75

Which equals = $112.5

<u>The Regular Price was $112.50</u>

Ask Me any questions in the comments so i can clarify myself.

Cheers!

3 0
3 years ago
Other questions:
  • On April 1, 2021, BigBen Company acquired 30% of the shares of LittleTick, Inc. BigBen paid $100,000 for the investment, which i
    9·1 answer
  • What are the good manner the service provider must demonstrate when communicate with customer​
    6·1 answer
  • A paper mill releases chemicals into a river. There is one town downstream that uses the water. For every unit of chemicals rele
    8·1 answer
  • Inflation is best understood as the rate at which __________.
    12·1 answer
  • What is the first step to take when trying to solve a problem?
    7·2 answers
  • country cupboard purchased inventory for $ 4 comma 800 and also paid a $ 360 freight bill. Country Cupboard returned 20​% of the
    6·1 answer
  • Arabian Beauty Cosmetics borrowed BD 152.300 from the National Bank of Bahrain (NBB) for three years. If the quoted rate (APR) i
    11·1 answer
  • Does anybody know how to calculate early start early finish late start Late finish and slack?
    9·1 answer
  • The process by which ANZ bank's internal job descriptions are matched to external jobs with similar responsibilities to identify
    15·1 answer
  • I feel like it’s depreciation I need help please
    7·1 answer
Add answer
Login
Not registered? Fast signup
Signup
Login Signup
Ask question!