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3 years ago

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

Business

1 answer:

forsale [732]3 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.

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Bramble Company uses a periodic inventory system. Details for the inventory account for the month of January, 2018 are as follow

Alecsey [184]

Answer:

Bramble Company

The gross profit for the month is:

$2,588.50

Explanation:

a) Data and Calculations:

Selling price = $12

Date Units Per unit price Total Balance,

Beginning Inventory 1/1/18 200 $6.00 $1,200

Purchase, 1/15/18 70 5.30 371

Purchase, 1/28/18 70 5.40 378

Cost of goods available 340 $1,949

Calculating the cost of goods available for sale allocated to, using FIFO:

Ending inventory 1/31/18 85 (70 * $5.40 + 15 * $5.30) = $457.50

Cost of goods sold, 255 units ($6.00 * 200 + 55 * $5.30) $1,491.50

Income Statement, December 31, 2018:

Sales Revenue = ($12 * 340) $4,080.00

Cost of goods sold 1,491.50

Gross profit $2,588.50

3 0

3 years ago

Bingo Land Inc. has a defined benefit pension for their employees. For the fiscal year 2019, the PBO beginning balance was $1,80

Umnica [9.8K]

Answer:

Ending balance is $152

Explanation:

The table is attached below

8 0

3 years ago

Adrian is one of several engineers applying for a job recently advertised on the internet. While writing his email cover letter,

umka2103 [35]

Adrian is one of several engineers applying for a job recently advertised on the internet. While writing his email cover letter, adrian should identify the position applied for in the project line.

In an email while applying for any job, jobseeker should use the job title as the subject line, so that the employer get to know what position the jobseekers are interested in.

That helps the busy hiring managers who are recruiting for multiple positions to see at a glance which job jobseeker are applying for.

Mentioning the job title which is also helpful in the case there is an automated filter that categorizes the hiring manager’s email. With the right subject line, jobseeker will be sure that his application is placed in the appropriate folder to be seen in a timely manner.

To know more about job title here:

brainly.com/question/12174315

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7 0

1 year ago

Suppose that, in a competitive market without government regulations the equilibrium price of gasoline is $3.00 per gallon.

yKpoI14uk [10]

Answer:

price floor , binding

price ceiling binding

price floor , non binding

Explanation:

A price floor is when the government or an agency of the government sets the minimum price of a product. A price floor is binding if it is set above equilibrium price.

Price ceiling is when the government or an agency of the government sets the maximum price for a product. It is binding when it is set below equilibrium price

Because firms are unable to hire workers due to the minimum wage laws., it means it is binding price floor

Equilibrium price is $3 and the maximum price is $2.70 . Thus, it is a binding price ceiling

Equilibrium price is $3 and the minimum price is $2.70 . Thus, it is a binding floor

8 0

3 years ago

34. Which of the following statements is correct? a. If oligopolists successfully collude, then their combined output will be eq

grandymaker [24]

Answer:

The correct answer is option d.

Explanation:

If oligopolists are able to collude successfully, they will be able to fix price and output similar to a monopoly.

In order to maximize profits, the oligopoly firms keep their prices higher than a perfectly competitive firm but lower than monopoly. The output level is kept higher than a monopoly firm but lower than a perfectly competitive firm.

5 0

3 years ago