Monopolistic competition is the economic market model with many sellers selling similar, but not identical, products. The demand curve of monopolistic competition is elastic because although the firms are selling differentiated products, many are still close substitutes, so if one firm raises its price too high, many of its customers will switch to products made by other firms. This elasticity of demand makes it similar to pure competition where elasticity is perfect. Demand is not perfectly elastic because a monopolistic competitor has fewer rivals then would be the case for perfect competition, and because the products are differentiated to some degree, so they are not perfect substitutes.
Monopolistic competition has a downward sloping demand curve. Thus, just as for a pure monopoly, its marginal revenue will always be less than the market price, because it can only increase demand by lowering prices, but by doing so, it must lower the prices of all units of its product. Hence, monopolistically competitive firms maximize profits or minimize losses by producing that quantity where marginal revenue equals marginal cost, both over the short run and the long run.
Answer:
The correct answer is letter "C": one of the satisfactions of being a leader.
Explanation:
The satisfaction of being a leader implies all those benefits employees with high rank and influence in the companies have. Those satisfactions are not merely monetary but also include having a wider knowledge of what the purposes of the firm are in the short and long term.
Answer:
<em>If two similar properties are for sale, a buyer will purchase the cheaper of the two</em>
Explanation:
This principle states <em>a property's maximum value is usually determined by the cost of purchasing an equivalent substitute property having the same usage, design, and income.</em>
For instance, why would someone pay $1,000,000 for an apartment when they could buy a different but equally desirable house for just $750,000 in the same area?
Answer:
Selling price= $224
Explanation:
Giving the following information:
Unitary purchase cost= $140
Mark-up percentage= 60%
<u>To calculate the selling price per unit, we need to use the following formula:</u>
Selling price= unitary cost*(1 + mark-up)
Selling price= 140*1.6
Selling price= $224
