One way that technological innovation has changed business is by decreasing the use of

If in the short run, firms in monopolistic competition _________, new firms will enter the market.

alukav5142 [94]

If in the short run, firms in monopolistic competition make an economic profit, new firms will enter the market.

A firm is a for-profit business organization—such as a company, limited liability company (LLC), or partnership—that provides skilled services. Most companies have only 1 location.

Companies during a monopolistic competition build economic profits within the short run, however within the long-standing time, they create zero economic profit. The latter is additionally a result of the liberty of entry and exit within the trade. Restaurants, hair salons, home items, and clothing are examples of industries with monopolistic competition.

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7 0

2 years ago

The long-run aggregate supply curve is vertical because: minimum wage sets the long-run wages. the price level is constant in th

mixas84 [53]

Answer:

The correct answer is the second option: The price level is constant in the long run.

Explanation:

To begin with, the concept of the <em>"aggregate supply"</em> refers to the total amount of goods and services that firms are willing and are able to offer at a certain price level given and at a determine period of time. Moreover, at the long-run the aggregate supply curve is not affected by many variables as it is in the short run and this is due to the fact in the long run the economy is said to be at full capacity and optimally and also because the changes in the aggregate demand are only affective in the short run to the economy's total output.

4 0

3 years ago

Along any downward sloping straight-line demand curve: Group of answer choices both the price elasticity and slope are constant.

vitfil [10]

Answer:

the price elasticity varies, but the slope is constant

Explanation:

The demand curve is a curve that shows the relationship between price and quantity demanded. The demand curve is negatively sloped because the higher the price, the lower the quantity demanded. This is in line with the law of demand.

According to the law of demand, the higher the price, the lower the quantity demanded and the lower the price, the higher the quantity demanded.

At the midpoint of the demand curve, demand is usually unit elastic. Above the midpoint of the demand curve, demand is elastic and blow the midpoint, demand is inelastic

Price elasticity of demand measures the responsiveness of quantity demanded to changes in price of the good.

Price elasticity of demand = percentage change in quantity demanded / percentage change in price

Price elasticity of demand = midpoint change in quantity demanded / midpoint change in price

If the absolute value of price elasticity is greater than one, it means demand is elastic. Elastic demand means that quantity demanded is sensitive to price changes.

Demand is inelastic if a small change in price has little or no effect on quantity demanded. The absolute value of elasticity would be less than one

Demand is unit elastic if a small change in price has an equal and proportionate effect on quantity demanded.

Infinitely elastic demand is perfectly elastic demand. Demand falls to zero when price increases

Perfectly inelastic demand is demand where there is no change in the quantity demanded regardless of changes in price.

8 0

3 years ago

Which of the following should take place in the completing stage when writing an instant message?a. Creating a content outline b

antoniya [11.8K]

Answer:

C. Proofreading

Explanation:

Option A is wrong. In an instant message, no one is trying to create a content outline as it is not a letter or assignment.

Option B is incorrect. An instant message can be sent to many people at a time. Therefore, maximizing the number of receivers is the main idea while writing an instant message.

Option D is also not correct. Acronyms are hard to understand. Writing acronyms in an instant message will be challenging for the receivers.

Option E cannot be the answer as an instant message can be sent anytime. Therefore, it can be increased.

<em>Option C</em> is correct because while writing an instant message, proofreading is a necessary stage. If anything misspelled or miswritten, the explanation will change.

5 0

3 years ago

A stock has an expected return of 11.85 percent, its beta is 1.24, and the expected return on the market is 10.2 percent. What m

prisoha [69]

Answer:

The risk free rate is 3.325%

Explanation:

The required rate of return or cost of equity of a stock can be calculated using the CAPM. The CAPM estimates the required rate of return of a stock based on three factors- risk free rate, stock's beta and the market risk premium. The equation of required rate of return under CAPM is,

r = rRF + Beta * (rM - rRF)

Where,

rRF is the risk free rate
rM is the return on market
(rM - rRF) gives us the risk premium of market

We already have the values for r, Beta and rM. Plugging in these values in the formula, we calculate the rRF to be,

Let rRF be x.

0.1185 = x + 1.24 * (0.102 - x)

0.1185 = x + 0.12648 - 1.24x

1.24x - x = 0.12648 - 0.1185

0.24x = 0.00798

x = 0.00798/0.24

x = 0.03325 or 3.325%

3 0

3 years ago