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Alik [6]
3 years ago
8

Monopolistically competitive firms do not achieve allocative efficiency because the _____. Multiple choice question. price for a

monopolistically competitive firm is lower than the average cost output produced is less than optimal and consumers pay a lower than competitive price, causing inefficient use of resources for society output produced is more than optimal and consumers pay a lower than competitive price, causing inefficient use of resources for society price for a monopolistically competitive firm exceeds the marginal cost
Business
1 answer:
andreev551 [17]3 years ago
4 0

Answer:

price for a monopolistically competitive firm exceeds the marginal cost

Explanation:

Monopolistically competitive firms do not achieve allocative efficiency because the <em>"price for a monopolistically competitive firm exceeds the marginal cost"</em>

Allocative efficiency is known to be an economic concept which actually regards efficiency at the societal level. This usually refers to the production of the optimal quantity of some output. The quantity produced is actually the marginal benefit of one more unit which the society enjoys and which is equal to the marginal cost.

In a monopolistically competitive industry, they will produce a lower quantity of a good and then their prices will be higher than would a perfectly competitive industry. A monopolistic competitive firm’s demand curve actually slopes downward. This then means that it will charge a price that exceeds marginal costs.

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Sunland Company incurs these expenditures in purchasing a truck: cash price $27,210, accident insurance (during use) $1,570, sal
aliina [53]

Answer:

Cost of Truck = $31,540

Explanation:

given data

cash price = $27,210

accident insurance =  $1,570

sales taxes = $1,840

motor vehicle license = $670

painting and lettering =  $2,490

to find out

cost of the truck

solution

as we know that Accidental insurance and the vehicle license are not include in cost of truck

because there are yearly costs

so that cost of the truck will be as

cost of the truck = cash price + sales taxes + painting and lettering   ...............1

put here value we get

Cost of Truck = $27,210 + $1,840 + $2,490

Cost of Truck = $31,540

3 0
3 years ago
​AllCity, Inc., is financed 39 % with​ debt, 11 % with preferred​ stock, and 50 % with common stock. Its cost of debt is 6.1 %​,
elena-14-01-66 [18.8K]

Answer:

Cost of debt (Kd) = 6.1%

Cost of preferred stock = <u>Dividend paid</u>

                                        Current market price

                                      = $2.53

                                         $33

                                      = 0.0767 = 7.67%

Risk-free rate (Rf) = 2.2%

Beta (β) = 1.11

Market risk premium (Rm - Rf) = 6.7%

Cost of equity (Ke) = Rf +β(Rm - Rf)

Cost of equity (Ke) = 2.2 + 1.11(6.7)

Cost of equity (Ke) =  9.637%    

WACC = Kd(D/V)(1-T) + Kp(P/V) + Ke(E/v)

WACC = 6.1(39  /100)(1 -0.35) + 7.67(11/100) + 9.637(50/100)  

WACC  = 1.55 + 0.84 + 4.82  

WACC  = 7.21%                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                    

Explanation:

In this case, cost of debt has been given. Cost of preferred stock is calculated as current dividend paid divided by current market price.

Cost of equity is calculated based on capital asset pricing model, which is Risk-free rate plus beta multiplied by the market risk premium.

WACC equals after-tax cost of debt multiplied by the proportion of debt in the capital structure plus cost of preferred stock multiplied by the proportion of preferred stock in the capital structure plus cost of equity multiplied by proportion of equity in the capital structure.

4 0
4 years ago
If a company has five employees with annual salaries of $40,000, $90,000, $40,000, $30,000, and $80,000, respectively, what is t
inessss [21]
Mean is where you add all of the values together and then divide the total by the number of values.

 After doing this, you should see this...

20,000+40,000+20,000+60,000+70,000 = 210,000

 After you get this number, you divide by the number of values, in this case, 5.

 210,000/5 = 42,000

6 0
3 years ago
What is a situation where you should not use credit?
nikklg [1K]
I would say it would be best to choice choice C because I mean if your already deep in debt then why would you want to be more into it? It wouldn't make sense. So I would go with C: When you are already in debt.
8 0
3 years ago
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4 0
4 years ago
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