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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

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Answer:

Why should we simplify expressions in algebra Using race?

Learning how to simplify an expression is the most important step in understanding and mastering algebra. Simplification of expressions is a handy mathematics skill because it allows us to change complex or awkward expressions into simpler and compact forms.

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4 0
3 years ago
Read 2 more answers
You are a loan officer for National Bank. You have a loan application submitted by a company for $50,000. This company just got
MArishka [77]

Answer:

5678

Explanation:

I think thats right

5 0
2 years ago
Collier Chemicals has redesigned many jobs to make the work more interesting and challenging for its employees. The company enco
Novay_Z [31]

Answer:

correct option is b. frederick herzberg to increase worker motivation.

Explanation:

given data

reimbursing them up to =  $7,500 per year

solution

  • Frederick Herzberg developed his two-factor theory from the hierarchy of Abraham Maslow to the theory of necessities. The two-factor theory basically states that employers have a set of factors that motivate them and that they have a particular set of factors that do not motivate them, and that the two factors are independent of each other.  
  • as employers may try to motivate employees by following certain actions, but this does not mean that employees are ignored every time, because beliefs, actions, and events that lead to lack of motivation are different from those that go by. More motivation.
  • Factors that motivate employees include: self-awareness, complexity of work, achievement recognition, loss of responsibility.

so  Collier Chemicals is adopting a strategy to meet those needs.

7 0
3 years ago
On April 1, Lewis Company paid $14,400 for two years of insurance in advance. Lewis Company recorded the transaction by debiting
Dominik [7]

Answer:

31 Dec       Expense A/c Dr.                      $5,400

                         To Prepaid Expense A/c                   $5,400

(Therefore, expense for the current financial year recorded)

Explanation:

We know that at the time of insurance paid in advance on 1 April for 2 years, entry was;

Prepaid Insurance A/c Dr.            $14,400

                 To Cash A/c                                      $14,400

Now at year end the expense relating to current period shall be recognized properly in the books, so that matching principle of revenue against expenses shall be matched.

Thus, period from 1 April to 31 December = 9 months

Expense for 9 months = 14,400 \times \frac{9}{24} = 5,400

That means expense for the year = $5,400

Therefore, entry for such recording will be:

31 Dec       Expense A/c Dr.                      $5,400

                         To Prepaid Expense A/c                   $5,400

(Therefore, expense for the current financial year recorded)

6 0
3 years ago
Identify the correct pricing strategy. Incorporating _______ pricing strategy drives customers to pay a higher price for a valua
harkovskaia [24]

Answer:

Premium, value

Explanation:

Premium Pricing Strategy: this a strategy used by companies to drive up the prices for their products. This strategy is used when customers can be convinced that a company will offer a higher value than its competitors.

For example, looking at the prices of a Rolls Royce Phantom and a Toyota, one costs $450,000 and the other costs $25,000, both will take you from your office to your house, but some customers will prefer to buy the Rolls Royce, this is because of the value the Rolls Royce offers.

Value: this is the worth or usefulness of something. Therefore, if a company can offer value for money, customers will be willing to pay.

8 0
2 years ago
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