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]
3 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]3 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]3 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
identify the reason(s) that accountants use a sales returns and allowances account: multiple select question.
Sloan [31]

The reason(s) that accountants use sales returns and allowances account to keep a complete record of sales returns and allowances to calculate operating efficiency.

An accountant is a practitioner of accounting or accountancy. Accountants who have verified competency through their expert associations' certification exam ·​rely on ·​ing ə-: the device of recording and summarizing commercial enterprise and monetary transactions and reading, verifying, and reporting the effects. also: the principles and tactics of this gadget. they studied accounting as a freshman. : work executed in accounting or by using accountants.

An Accountant facilitates agencies making critical monetary decisions by collecting, tracking, and correcting the corporation's budget. they may be accountable for economic audits, reconciling financial institution statements, and making sure financial information is correct for the duration of the yr.

Learn more about accountants here: brainly.com/question/25568979

#SPJ4

5 0
10 months ago
Assume the money supply is $500, the velocity of money is 8, and the price level is $2. Using the quantity theory of money:
LiRa [457]

Answer:

a) 2000

b) 4000

c) 2000 and 4800

Explanation:

The quantitative theory of money shows how the monetary side of an economy behaves, that is, the effect of money supply on income. It is given by the equation MV = PY, where M = money supply, V is the currency's velocity, P is the price level and Y is the real income level.

M = 500, V = 8, P = 2

a) The real income level:

MV = PY

500 x 8 = 2 x Y

Y = 2000

b) Nominal income level (price level multiplied by real income)

PY

2 x 2000 = 4000

C) If the money supply increases by 20%, ie to 600, the real income will be:

MV = PY

600 x 8 = 2.4 x Y (Y is full employment income, so the effects of money supply will be on the price level)

Y = 2000 Real income remains the same, increase in money supply does not affect real output, only price level, which increases from 2 to 2.4.

The nominal income, in turn, will be:

PY

2.4 x 2000 = 4800

That is, an increase in the money supply only increases nominal income.

3 0
3 years ago
1. A company wants to build a new voting kiosk for sales to governments around the world. Which IoT technologies should the comp
Anarel [89]

Based on the situation described in the question, the IoT technology that the company should choose to ensure the highest degree of security is "<u>Azure Sphere."</u>

This is because Azure Sphere is the operating system that Microsoft designs to ensure the dealers of Internet of Things devices increase their security by incorporating a specific system on a chip.

Azure Sphere is known for its protection, high-level application functionalities, and well built-in communication and security traits for internet-connected devices.

Hence, in this case, it is concluded that the correct answer is "<u>Azure Sphere</u>."

Learn more here: brainly.com/question/22977393

6 0
2 years ago
Which economic utility increased when fast-food restaurants began accepting credit.
Alborosie

Answer:

Possession utility

Explanation:

Possession utility is the value consumers derive from purchasing a good and there is an option for them to make use of the good for the primary function it was made to perform or when it is possible to make use of the good in another way.

The possession utility of a product can increase when a customer is given a means of finance that affords him an immediate enjoyment of a commodity by  paying little or no money for it.

Therefore, possession utility increased when fast-food restaurants began accepting credit.

4 0
3 years ago
Read 2 more answers
Ttttthhhhheeeeeeeeeeeeeeeeeeeeeeeeeeeeeeeeeeeeeeeeeeeeeeeeeeeeeeeeeeeeeeeeee accounf is not working
frez [133]

Answer:

Step by step explanation

8 0
3 years ago
Other questions:
  • Suppose you deposit ​$2,200 cash into your checking account. By how much will the total money supply increase as a result when t
    15·1 answer
  • The cpi is a measure of the overall cost of the goods and services bought by __________. a a typical consumer, and the cpi is co
    12·1 answer
  • Paying taxes to governmental bodies is considered a cash outflow in the operating activities section on the statement of cash fl
    5·1 answer
  • Innove Tech is a technological firm that wants to build a global service delivery system. It has consulted a larger firm, Ziff C
    12·1 answer
  • Estimated expenses of liquidation were $10,000. Henry, Isaac, and Jacobs shared profits and losses in a ratio of 2:4:4. Before l
    9·1 answer
  • Some estimates have been presented to Charlene, the Director of Operations (DO) at Holly Farms, which is considering alternative
    12·1 answer
  • Patricia Ness is a lawyer specializing in employment law. Her clients showed her that the right-to-work laws create many problem
    6·1 answer
  • Consider the CAPM. The risk-free rate is 7%, and the expected return on the market is 13%. What is the expected return on a stoc
    5·1 answer
  • Trout Company is considering introducing a new line of pagers targeting the preteen population. Trout believes that if the pager
    14·2 answers
  • Employees who record and are paid for the exact amount or time spent working are paid on
    11·1 answer
Add answer
Login
Not registered? Fast signup
Signup
Login Signup
Ask question!