Answer:
Option A:
<em>Large</em> Marginal costs; less <em>firms in the industry</em>
Explanation:
Monopolistic competitions are market models which are charaterized by low barriers to entry. High marginal costs will discourage firms from entering the industry, thereby leading to a reduced number of firms operating there in the long run.
Since the marginal costs reduce profit, if this continues to rise, most firms will discover that it is difficult to make profit in such an industry. They will definitely leave industry for a different one.
This makes Option C the answer.
If the fed sells $5 billion of u. S. Bonds in the open market and the reserve requirement is 5 percent, m1 will eventually decrease by $100 billion.
<h3>What is the effect of the sale of bonds on M1?</h3>
M1 is comprised of the most liquid money supply e.g. currency, demand deposits. When the Fed sells bonds they are conducting a contractionary monetary policy. The aim of this policy is to reduce the supply of money in the economy.
Reduction in the value of money = value of bonds sold / reserve requirement
$5 billion /0.05 = $100 billion.
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Profit - Liabilities = Income
In this context, the Pineapple whip is engaged in a business arrangement called Franchising.
<h3>What is
Franchising?</h3>
Franchising is a business arrangement where the franchisor (one party) grants some rights and authorities to the franchisee.
In this case, the , the franchisee will pays a fee to the franchisor because he is using the business's success, trademarks, proprietary knowledge etc.
In conclusion, the the Pineapple whip is engaged in a business arrangement called Franchising.
Read more about Franchising
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