Answer:
MR =MC
P > MC
The industry will not be efficient.
In that order.
Explanation:
Just like in a monopoly, a monopolistically competitive firm always aims to produce at the profit maximizing level. This stays the same in long run and in the short run, this is where , Marginal revenue = Marginal Costs.
The price is set such that it is above average total costs and marginal costs, this results in an economic profit. Thus prices are usually set P > MC.
The prices are also greater than ATC and in the long run these prices equal the ATC while still remaining slightly above the MC curve if the product differentiation is successful.
When this happens, the industry is not efficient in the short run.
Hope that helps.
Answer:
ToySpot in this scenario is a soft toy retailer; this means it deals with customers directly and at the same location.
Answer:
$54,348
Explanation:
Given:
Consumer Price Index in 2009 = 207
Consumer Price Index in 2013 = 225
Income in 2009 = $50,000
Income in 2013 = ?
Computation of Income in 2013:
Income in 2013 = Income in 2009 x (Consumer Price Index in 2013 / Consumer Price Index in 2009)
= $50,000 x (225 / 207)
= $50,000 x 1.08695652
= $54,347.826
= $54,348 (Approx)
Answer:
A) $930
B) $930
C) See explanation
Explanation:
A) Since Jeremy spends by purchasing products from Michele, Michele earns an income. As there are no further activity, the economy's income is $930.
B) Since Jeremy spends by purchasing products from Michele, Jeremy pays money. As there are no further activity, the economy's expense is $930.
C) There is a relationship between income and expenses in an economy. That relationship is called the consumption factor. If people earn money, they tend to spend that money. In an economy, someone's income may include another person's expenditure. An example can show the relationship in a better way -
If Mary earns money by providing services, it will be her income and also the economy's income. As another person pays fees for the services, it will be the customer's expense and also the economy's expenditure.