Monopolistically competitive firms are unlikely to:
A. produce where price equals average total cost.
B. charge a higher price than firms in perfect competition.
C. produce a smaller quantity than firms in perfect competition.
<u>D. operate where price equals marginal cost.</u>
E. exit the industry when demand falls below long-run average costs.
The Correct answer is <u><em>OPTION D</em></u><em>.</em>
<em />
When several firms provide similar but not identical replacement goods or services, we have<em> </em>monopolistic competition.
An industry with low barriers to entry and little impact from any one company's actions is said to be monopolistically competitive. Companies separate themselves from one another in the market by using price and advertising strategies.
It is called monopolistic competition when multiple businesses sell nearly identical goods. In monopolistic competition, businesses use price and marketing tactics to set themselves apart from rivals. In monopolistic competition, there are few barriers to entry in the form of high start-up costs or other difficulties to new entrants.
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Answer:
Inelastic
Explanation:
When the price elasticity of demand (PED) is lower than 1, the demand is said to be inelastic. This means that a 1% increase in the price of a good or service will result in a proportionally smaller reduction of the quantity demanded. The formula for calculating price elasticity of demand is:
PED = % of change in quantity / % of change in price
For example, if the price of gasoline increases by 5% but the quantity demanded for gasoline decreases only by 2%, the PED = 2% / 5% = 0.4, therefore the demand for gasoline is inelastic.
Answer:
The correct answer is letter "A": lump-sum payment made to a life insurance company that promises to make a series of equal payments later for some period of time.
Explanation:
An annuity is a payment made to an insurance company under the promise the insurance will make equally-distributed repayments to the policyholder at a specific period. The payments for the annuity are usually made in a lump-sum but they can be paid in small installments. When the repayments start immediately after the insured hires the policy, the insurance is called it is called an annuity due.
Answer:
135.3
Explanation:
GRM stands for Gross rent multiplier.
The formula and the computation of the gross rent multiplier are shown below:
Gross rent multiplier = Appraisal value ÷ rent for each four plex
= $460,000 ÷ 3,400
= 135.3
The rent for 4 units is computed below:
= Rent per month × number of four plex
= $850 × 4
= $3,400
Answer:
The correct anwer is: the rest of the world; the United States.
Explanation:
Now, the goods exported by the United States tell only part of the story. Services are the largest export of this country, with sales abroad for 778,000 million dollars last year. In fact, the United States has a trade surplus of $ 243 billion in services, which is good news since the industries in this sector account for 71% of jobs in the country
These are the service industries that generate the most money:
-
Travel and transportation: 236,000 million dollars.
- Finance and insurance: 76,000 million dollars.
-
Intellectual property sales: 49,000 million dollars. This includes software, movies and TV shows.
