1answer.
Ask question
Login Signup
Ask question
All categories
  • English
  • Mathematics
  • Social Studies
  • Business
  • History
  • Health
  • Geography
  • Biology
  • Physics
  • Chemistry
  • Computers and Technology
  • Arts
  • World Languages
  • Spanish
  • French
  • German
  • Advanced Placement (AP)
  • SAT
  • Medicine
  • Law
  • Engineering
saw5 [17]
4 years ago
9

Suppose Susan owns a business that operates in a market characterized by monopolistic competition. Susan's profit-maximizing pri

ce is $12, her profit-maximizing output is 900 units per week, and her profits are $1,800 per week. Susan decides that she needs more profits and therefore raises her price to $15. At the new price of $15:____________
A) profits will increase.
B) profits will remain at $1,800.
C) marginal revenue will be greater than marginal cost.
D) marginal revenue will be less than marginal cost
Business
2 answers:
nadya68 [22]4 years ago
7 0

Answer:

The answer to this question is Option C.

marginal revenue will be greater than marginal cost. 

Explanation:

Monopolistic competition characterizes an industry in which many firms offer products or services that are similar, but not perfect substitutes.

There is  low barrier to entry and exit in a monopolistic competitive industry and the decisions of any one firm do not directly affect those of its competitors.In a monopolistic competition, there is  a negative relationship between price and quantity demanded.

 

If Susan increases her price to $15, marginal revenue will be greater than marginal cost.  

Hence the answer is Option C

densk [106]4 years ago
4 0

Answer:

C) marginal revenue will be greater than marginal cost. 

Explanation:

A monopolistic competition is when there are many buyers of differentiated goods. The demand curve of a monopolistic competition is downward sloping. This downward sloping demand curve indicates that there's a negative relationship between price and quantity demanded.

If Susan increases her price to $15, all things being equal, Quanitity demanded would fall and her profit would fall.

At the profit maximising price of $12, marginal revenue is equal to marginal cost. So if price is increased to $15, marginal revenue would exceed marginal cost.

I hope my answer helps you

You might be interested in
4-55 A firm expects to install smog control equipment on the exhaust of a gasoline engine. The local smog control district has a
Kruka [31]

Answer:

the  amount that should be paid is $11,292

Explanation:

The computation of the amount that should be paid is shown below:

Present worth is

= $10,000 + $75(P/A, 6%, 10) + $25(P/G, 6%, 10)

= $10,000 + $75 × 7.3601 + $25 × 29.6023

= $11,292

Hence, the  amount that should be paid is $11,292

We simply applied the above calculation

8 0
3 years ago
What is one benefit of a savings account?
lisov135 [29]

Explanation:

the benefits of a savings account is to be secure from thief

6 0
2 years ago
As a manager, jermaine, defines goals, set performance objectives, and identify action steps for accomplishing them. jermaine is
enyata [817]

If Jermaine defines goals, set objectives and identifies the steps for having to accomplish them, she is engaged with the management function of planning as planning is a function in management in having to make plans in order to acquire specific goals.

3 0
3 years ago
Find an online news article related to tort law and write a 3 to 5 sentence response tying the article to at least one key conce
Arisa [49]

Answer:

Tort law is the civil law that enables the employees to seek compensation by the business if anything wrong is done against them.

Explanation:

Tort law secures the rights of employees and enables them to ask for compensation if they are mentally disturbed or physically harmed by the business activities or management team. The law also protects individuals from the threats of harm and compensation can be seek by providing proofs in the court.

4 0
3 years ago
Opportunity cost is best defined as: A. the monetary price of any productive resource. B. the amount of labor that must be used
andreyandreev [35.5K]

Answer:

D. The amount of one product that must be given up to produce one more unit of another product.

Explanation:

Opportunity cost is defined as the potential benefits that you would recieve if you choose one option over another. This is an economic term that can easily be applied in our day to day lives: Ex. When you choose to study over work, the opportunity cost is represented by the money you could earn as payment for your work.

In business, companies must decide whether they produce a wide range of products or services or if they focus their resources in producing those products in which they are more efficient and would represent higher earnings.

4 0
3 years ago
Other questions:
  • At Spring Fresh, water is added at the beginning of the filtration process. Conversion costs are added evenly throughout the pro
    6·1 answer
  • The expected return on the market portfolio is 15%. The risk-free rate is 8%. The return on SDA Corp. common stock turned to be
    6·1 answer
  • If the “exact” terms of the listing agreement are met, the listing broker is entitled to a commission, even if the:
    8·1 answer
  • Targeting Business Customers A soap company has been selling their soap to consumers with great success. However, recently they
    9·1 answer
  • Dewey, Cheatum, and Howe is a car company that makes four models, a hybrid sport utility, a sports car, a four-door sedan, and a
    10·2 answers
  • Kitchen dishcloths are often difficult to rinse clean and typically dry slowly. A company recently developed a disposable kitche
    9·1 answer
  • Machine A costs $750,000 and depreciates on a 15-year schedule. Machine B costs $480,000 and depreciates on a 24-year schedule.
    14·1 answer
  • In terms of the global marketplace there are three primary types of companies: __________, multinational firms, and transnationa
    6·1 answer
  • Chance to win 50 points for 2 luck winners
    5·2 answers
  • Ray's Pizzeria is considering the addition of a 5th worker if this increases profit. Pizza sales increased from 300 per day to 3
    8·1 answer
Add answer
Login
Not registered? Fast signup
Signup
Login Signup
Ask question!