Answer: B. If a firm has been suffering accounting losses that are expected to continue into the foreseeable future, and therefore its tax rate is zero, then it is possible for the after-tax cost of preferred stock to be less than the after-tax cost of debt.
Explanation: A firm suffering from losses due to accounting that are expected to continued in the future then the prefect stock will be less than cost of debt after tax.
The option " B* is the only correct statement among the others .
The integrated cost leadership/differentiation strategy needs structural features that are partially centralized and partially decentralized, jobs that are semispecialized, and rules and procedures that call for some formal and some informal job behavior. True or false?
Answer:
true
Explanation:
An integrated cost leadership/differentiation strategy basically combines a cost leadership strategy (selling your products or services at a low cost) and a differentiation strategy (offering differentiated products or services). This way, the company offers differentiated products at the lowest possible price.
This strategy is very difficult to execute properly and successfully since generally differentiated products tend to be more expensive to produce than standard products.
In a manufacturing company, the cost of factory labor consists of all of the following except __________.a. net earnings of factory workers. b. gross earnings of factory workers. c. employer payroll taxes. d. fringe benefits incurred by the employer.
Answer:
a. net earnings of factory workers
Explanation:
As the total factory cost is equal to the total direct material and plus the direct labour plus the factory overhead. The direct labour is involved in the production of the goods. And most of the labour production is needed to produce a minimum number of staffing to the production area and should be considered as an overhead cost with the unit of production. For an example of a worker is paid a free piece-rate wage this can be considered as direct labour for each unit of manufacturing.Final answer:
In a manufacturing company, the cost of factory labor includes net earnings, gross earnings, employer payroll taxes, and fringe benefits, but not the profits earned by the company, which are the outcome after labor and other production costs are accounted for.
Explanation:
In the context of a manufacturing company, the cost of factory labor includes various elements such as the wages and benefits paid to and on behalf of the workers. The cost of labor incorporates the net earnings of factory workers, gross earnings of factory workers, employer payroll taxes, and fringe benefits incurred by the employer.
However, the part of the costs that doesn't constitute a manufacturing labor cost is the profits earned by the company or any potential capital owners. Profits are what remain after deducting the cost of production, including labor, from the revenue generated by the sale of the goods. Therefore, profits are not a part of the labor cost; instead, they are an outcome of the production process that includes those labor costs.
The term wages in economics refers to the total compensation, which goes beyond mere cash payments to include various benefits. The cost of production in economic discussions is mainly centered around labor and wages. While tools, materials, and other resources are certainly part of manufacturing costs, they ultimately represent labor costs since their production also required labor.
Rachel attends weekly major league baseball games with her boyfriend. One day, she gets hit in the head by a foul ball. If Rachel sues the baseball stadium for negligence related to the damages she sustained from the ball hitting her head, but the stadium prevails, what would be the stadium's winning defense
Answer:
Implied assumption of the risk
Explanation:
Implied assumption of the risk is the situation whereby the plaintiff underwent the full event with full knowledge understanding of the possible harm to him or herself and consent to the risk under those circumstances. In a baseball game, there's always a risk of the ball hitting the fans seated in the stadium. Each stadium going fan is aware of this risk and consent to it whenever the ugh choose to watch the game live from inside the stadium. Thus, the stadium would use the implied assumption of risk in winning a law suit that Racheal sues them for. Implied assumption of risk points to the fact that the individual voluntarily and knowingly assumed the risk present or associated with the activity.
Let's say that you are in the market to purchase an already built house. Sort the items below into the correct bin based on whether the statement reflects something you need to know in order to purchase a house. How to keep the living room's color from clashing with the bathroom's The price of the house. How to wire the house for electricity Your monthly income, expenses, and savings. How to place anchor bolts into the house's foundation. How to make the kitchen plumbing work.
Answer:
1. How to place anchor bolts into the foundation
2. How to make the kitchen plumbing work
3. How to wire the house for electricity
4. How to keep the living rooms color from clashing with the bathrooms
Explanation:
These are the proper step by step processes to follow and it has to be in this order
GroundSwell Pools, Inc., agrees to build a swimming pool for Francis, but fails to complete the job. Francis hires EquiAqua, Inc., to finish the project. Francis may recover from GroundSwella.the costs needed to complete construction.b.the contract price.c.the contract price less costs of materials and labor.d.profits plus the costs incurred up to the time of the breach.
Answer:
Option A. The costs needed to complete construction
Explanation:
The reason is that the harm that the Francis beared due to the unableness of the company GroundSwell to complete the construction of the swimming pool is the cost needed to complete the construction because it is the price that the company GroundSwell must pay to EquiAqua Inc. to complete the construction. So this amount required for the completion of the construction is the actual harm to Francis and is also claimable.
A profit maximizing firm will hire inputs in combinations A. such that the marginal physical product per last dollar spent on each factor of production is equalized. B. that equate marginal revenue products of each input. C. that minimize the prices of inputs. D. that equate marginal physical products of each input.
Answer:
The correct answer is letter "A": such that the marginal physical product per last dollar spent on each factor of production is equalized.
Explanation:
The general concept of profit maximization relies on equalizing the marginal revenue to the marginal costs of a firm. The company selects the inputs necessary for production as well as the outputs that are likely to help to generate revenues at its maximum level. Inputs are hired in combinations when the last dollar spent on each input equals the marginal output.
Profit maximizing firms will hire inputs in combinations that equalize the marginal benefit from each input to its cost. This is not about minimizing input costs, but about maximizing the profit from each input.
Explanation:A profit maximizing firm will hire inputs in combination such that the marginal physical product per last dollar spent on each factor of production is the same (principle of equi-marginal utility) or the marginal revenue products of each input are the same. This means that the firm will balance the costs and benefits of each input in such a way that no change in the input mix can further increase profit. The idea is to get the most output from the least cost. It's not about minimizing the cost of inputs, but rather about equating the marginal returns of each input to the cost of that input. So the correct answers are options A and B. For example, if a firm finds that hiring an additional employee generates more additional revenue than it costs, then it is profitable to hire that worker. But if the additional revenue from hiring one more worker is less than the cost, then it is not profitable to hire that worker.
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Lein's net income is $200,000 and its operating cash flows are $240,000. The company reports total assets of $1.6 million and $1.8 million at the end of the prior and current year, respectively. Cash return on assets (rounded to one-tenth of a percent) is:
Final answer:
To calculate the Cash Return on Assets for Lein, the operating cash flows are divided by the average total assets, resulting in a CROA of 14.12%.
Explanation:
The question is asking to calculate the Cash Return on Assets (CROA), which is a measure of a company's operational efficiency in generating cash from its assets. To calculate this, we first find the average total assets for the year, then divide the company's operating cash flows by this average. Lein's average total assets would be ($1.6 million + $1.8 million) / 2, which is $1.7 million. The CROA is then computed as $240,000 (operating cash flows) divided by $1.7 million (average total assets), giving us 0.1412, or 14.12% when converted into a percentage and rounded to one-tenth of a percent.
Western Company has net income of $100 million in 2018. If net income in 2019 is $175 million or more, executives will receive 2 million additional shares of common stock. How does this effect the calculation of diluted EPS?
Answer:
Diluted earnings per share (EPS) measures how EPS would be affected if all convertible securities are turned into common stock. As more convertible securities are turned into common stock, the EPS dilutes or decreases since net income must be divided by a larger amount of stocks.
In this case we are not told how many outstanding common stocks exist, but whatever the number, e.g. 50 million, the effect of the 2 million additional stocks given to the company's executives will reduce the EPS of all the outstanding common stocks. Current EPS = $175 million / 50 million = $3.50 per stock. With 2 million more common stocks, EPS = $175 million / 52 million = $3.37 per stock.
Final answer:
If executives receive additional shares of common stock, it would affect the calculation of diluted EPS by increasing the weighted average number of shares outstanding and potentially diluting the EPS.
Explanation:
The calculation of diluted earnings per share (EPS) takes into account the potential impact of potentially dilutive securities on the company's earnings per share. In this case, if executives receive 2 million additional shares of common stock, it would increase the weighted average number of shares outstanding and potentially dilute the EPS.
To calculate diluted EPS, you would add the additional shares received by the executives to the denominator of the EPS formula, which is the weighted average number of shares outstanding. This would result in a larger number of shares and, all else being equal, a lower diluted EPS.
For example, if the weighted average number of shares outstanding is 100 million and the net income is $175 million, the diluted EPS would be calculated as $175 million / (100 million + 2 million) = $1.73 per share.
If a company owns 25% of the voting stock of Pink Co. and can exercise significant influence, dividends received will be A. credited to Cash. B. debited to Equity Investmentslong dashPink Co. C. credited to Equity Investmentslong dashPink Co. D. credited to Dividend Revenue.
Answer:
C. credited to Equity Investmentslong dashPink Co.
Explanation:
With 25% voting power and the ability to exercise significant influence, Pink Co is an associate of the company.
For dividend received from associate, we subtract it from the cost of investment in associate hence it it posted as a credit entry to the account (Investment in associate).
The right option is C.
ghana and south korea each have 200 units of resources. for ghana, it takes 10 units of resources to produce one ton of cocoa and 13.33 units to produce one ton of rice. for south korea, it takes 40 units to produce one ton of cocoa and 20 resources to produce one ton of rice. which one is not correct?
Answer:
Ghana has comparative advantage in Cocoa. And, South Korea has comparative advantage in Rice.
Explanation:
Resources needed to produce Cocoa & Rice, in Ghana & South Korea
Cocoa Rice Trade off Ratio
Ghana 10 13.33 10 : 13.33 = 0.75
South Korea 40 20 40 : 20 = 2
Comparative Advantage is an economy's ability to produce a good at lower opportunity cost (other good sacrifised) ; than other economy. It happens when economy is relatively more productive in production of that good, than the other good ; compared to other economy.
Ghana is 4 times productive in producing cocoa than South Africa (takes 1/4th resources). But it is comparatively lesser times productive in producing rice than South Korea.
Ghana produces cocoa by sacrifising less amount of rice than South Korea (0.75 < 2). So, Ghana has comparative advantage in Cocoa South Korea produces rice by sacrifising less cocoa units i.e = 0.5 (20/40), than Ghana which can produce rice by sacrifising 1.3 (13.33 / 10) cocoa units. So, South Korea has comparative advantage in Rice.At what amount is a short-term notes receivable recorded on the issue date?
Answer:
At face value
Explanation:
Short term notes are always recorded at face value, and that applies to both interest and non-interest bearing short term notes.
Non-interest bearing long term notes must be recorded at their discounted value, i.e. you must discount the long term note' face value by the discount rate used by the company.
Regulations could add to the cost of business because companies would have to spend money to meet regulatory guidelines.
True or False
Answer:
On Edg, the correct answer to this is true.
Allison, an HR Executive at BigMind Inc., must recruit suitable candidates from a list of 50 job applicants. Which of the following is a legally permissible criterion that Allison can use to make a hiring decision?A. EducationB. GenderC. AgeD. National origin
Answer:
A. Education
Explanation:
OPTION (A) is absolutely correct, because Allison can only make hiring decision of the fifty applicants by their education.
As we know that the interviewer is not suppose to question any of the interviewee regarding their personal information like what is your color, where is your national origin, what is you age, what is your religion, what is your gender and marital status and also the interviewee's sexual orientation.
Final answer:
Education is the only legally permissible and non-discriminatory criterion Allison can use for hiring decisions at BigMind Inc., as Gender, Age, and National origin are protected characteristics under U.S. federal laws enforced by the EEOC.
Explanation:
Allison, an HR Executive at BigMind Inc., can use several legally permissible criteria to make a hiring decision. Among the options provided, Education is the only criterion that is legally permissible and non-discriminatory. Criteria such as Gender, Age, and National origin are protected characteristics under federal laws administered by the U.S. Equal Employment Opportunity Commission (EEOC) and cannot be considered in hiring decisions unless they are bona fide occupational qualifications (BFOQs), which are rare exceptions.
For instance, it is illegal for employers to make hiring decisions based on age under the Age Discrimination in Employment Act, or on national origin under the Civil Rights Act of 1964. Therefore, Allison must ensure that the recruitment process is free from discrimination by focusing on job-related qualifications like education, relevant experience, and specific skills necessary for the job.
Stan plans to invest $100,000 in either a risk-free bond or a portfolio of 100 stocks. If he buys the bond, it will be worth $107,000 at the end of one year, for a guaranteed return of 7 percent. Alternatively, he could put $1,000 each into 100 different stocks. Each stock has a 50-50 chance of being worth either $2,300 or $0 at the end of the year, so the expected return on each stock (and the whole portfolio) is 15 percent. Which of the following should make Stan more likely to invest in the stock portfolio?The stocks are uncorrelated with each other (r = 0).
Answer:
The stock investment is preferred
Explanation:
The bond give a holding period yield of 14% which is calculated thus:
holding period yield =(p1-p0)/p0+return of 7%
=(107,000-100,000)/100,000+7%
=7%+7%
=14%
The stock investment of 15% is preferred over the bond return of 14%,since the stock portfolio comprises of assets that are not correlated which implies adverse performance in one stock asset does not affect the performance of others,invariably the 15% return is near guarantee.
Sammy's Soups markets just one product: canned soup. However, it markets 27 different varieties of canned soup. Based on this information, it is evident that Sammy's Soups has a a. deep product line but a narrow product mix. b. broad product line and a wide product mix. c. narrow product line but a deep product mix. d. narrow product line and a wide product mix.
Answer:
a.
Explanation:
Based on the scenario being described within the question it can be said that it is evident that Sammy's Soups has a deep product line but a narrow product mix. This is because he only offers one category of items, which are soup making his product mix all but non-existent, yet he offers 27 different varieties of soup which makes his product line very deep.
Answer:
A. Deep product line but a narrow product mix.
Explanation:
From the scenario given, it can be inferred that Sammy's Soups markets one product, however, they have 27 different varieties of the product. This implies that they possess a deep product line but a very narrow product mix.
When a company or business possesses one or a few products but different varieties within the product, it is said to have a deep product line but a narrow product mix.
One major disadvantage of this is that when the need for the product reduces, it affects the company's profits drastically because it has only one product in the market in different forms.
Software (such as typical tax preparation software) which in essence interviews the user is following which user interface metaphor? a. Interview metaphor b. Collaboration metaphor c. Document metaphor d. Dialog metaphor
An HCI metaphor that compares communicating with a computer to having a conversation or dialog The user makes a request of the computer, and the computer responds. Hence option D is Correct .
What is Dialog Metaphor ?The screens that users will utilize and how they interact with other program components are defined by the revised boundary classes. Two metaphors are typically employed while creating user interfaces.
Dialog Metaphor is a method of user-system communication that involves the use of menus, function keys, or the entry of commands through a command line. Such a metaphor is frequently employed in the methodical approach to creating user interfaces that are displayed on terminals with character or text input.
System utilizing GUIs, or graphical user interfacesThese user interfaces are event-driven, meaning that they react when a user, let's say, hits a button. The user gets the idea that they are moving things around on the screen.
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At January 1, 2019, the Accrued Warranty Payable is $ 1 comma 100. During 2019, the company recorded Warranty Expense of $ 19 comma 100. During 2019, the company replaced defective products in accordance with product warranties at a cost of $ 12 comma 800. What is the Accrued Warranty Payable at December 31, 2019?
Answer:
$7,400
Explanation:
The computation of the accrued Warranty Payable at December 31, 2019 is shown below:
= Opening balance in accrued warranty payable + warranty expense - defective products
= $1,100 + $19,100 - $12,800
= $7,400
We simply applied the above formula so that the Accrued Warranty Payable at December 31, 2019 could come
As the chief financial officer (CFO), you identify that your firm needs to raise additionalfunds by selling new shares of stock. Which of the following refers to a specialist that assists corporations in the issue and sale of new securities? A. An investment bankerB. A commodities brokerC. An officer of the Securities and Exchanges Commission (SEC)D. An institutional investor advisor
Answer:
The correct option is A,an investment banker
Explanation:
Investment banks normally underwrites large issue of stock by buying the entire issue of shares at a discounted price to its face value and then selling them to individual or institutional investors at the face value,thereby making as a profit the spread between the face value and the discounted price.
The CFO would probably have to contact a prominent investment bank that has, based on track record,handled similar transactions in the past and recorded high success rate.
If a company does not intend to expand globally, but exports some products without customizing for international markets, it should organize around...a. transnational strategyb. standardization strategyc. an exporting strateg
If a company does not intend to expand globally, but exports some products without customizing for international markets, it should organize around an exporting strategy. Thus, option (c) is correct.
What is company?
The term "company" refers to legal entities that are lawfully registered under the Company Act. The company's major goal is to increase profits while maintaining goodwill. With the assistance of management, the organization was flawlessly run. Employees are compensated by the company.
A company's export strategy focuses mostly on domestic markets. It has no plans to expand abroad, but it does export some products to international markets without customizing them. Goods are manufactured in the nation of origin. Exporting may be profitable for many types of enterprises.
As a result, the company does not intend to expand globally it should organize around an exporting strategy. Therefore, option (c) is correct.
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Which of the following involves planning, implementing, and controlling the efficient and effective flow and storage of products and information from the point of origin to consumption to meet customers' needs and wants?
a. physical distribution
b. logistics management
c. supply-chain management
d. supply management
e. operations management
Answer:
The answer is option (B) logistics management.
Explanation:
Logistics management is a business term that describes the process of organizing the flow of product, information and resources from a starting point to the endpoint in order to meet or fulfill customers expectations.
In other words, logistics management is all about processes involved in the acquisition, storage, management and transportation of products, information and resources to their final destinations from the point of origin (starting point).
Lyle’s manager just handed him a list of goals for the year. Because Lyle had no say in setting these goals, he isn’t sure that they are the right ones for him, and as a result, he isn’t very motivated to accomplish them.
Answer: Goal acceptance
Explanation:
Most times in organizations, it is the people in leadership positions who set and manage goals for the employees and it is rare for staff to be part of the goal setting process,
Such employees are sometimes not sure of what to do and how to achieve the goals. Such employees are not in charge of their own responsibilities. Employee goal acceptance is when employees are just part of the process when making decisions even though the goals are set by the management.
Answer:
Goal acceptance
Explanation:
Goals setting means outlining the desired objectives to achieved by a business or an organization for the period. Organizations usually set goals at the beginning of each period or year. This will guide them throughout the course of the period should their be any deviation from these set goals.
When goals are spelt out and cascaded to lower cadre, the surbodinate must take ownership of the goals related to him or her. There must be commitment to the attainment of these goals by the surbodinate.
Managers have a duty to help and guide surbodinates reasonably so that they can accept the goals and make it their own. Where goals are not clearly spelt out or are ambiguous, it is the duty of the manager to help simplify and make it clearer for his surbodinate.
It is also imperative that surbodinates are involved in goal settings. Their involvement would bring internalization and drive essential to the attainment of these goals.
Dr. Wilson, an orthopedic surgeon worked for the Medical Group in Utah. He signed an agreement when hired to not "compete with the Group after leaving it for 2 years and within a radius of 5 miles." After leaving the group, and in violation of the covenant against competition, Dr. Wilson set up an orthopedic practice. The Medical Group did not replace Dr. Wilson with another orthopedic surgeon and none was practicing medicine within 35 miles. If the Medical Group sued to enforce the covenant, a court would rule in its favor.
A. True
B. False
Answer:
False
Explanation:
The reason is clear, that is the breach of the contract hasn't caused any harm to the medical group, because after the resignation of Dr. Wilson, Medical Group didn't had replaced Dr. Wilson with another Orthopedic Surgeon. As a result, the practicing of Dr. Wilson hasn't caused any financial loss to Medical Group. So the court will rule in the favor of Dr. Wilson.
Matias is developing a pricing strategy for his start-up company. Market research tells him that there is no elite segment and the product that he sells offers little opportunity for differentiation. His marketing plan includes investments in advertising and promotion. Which pricing strategy is best suited for Matias's company?
Answer:
Penetration Pricing Strategy
Explanation:
The reason is that the penetration strategy is used when the product that the company wants to offer to its customers has very little or no differentiation, which is the case here. It is also helpful in promoting the product as the product is sold at lower prices helps to attract potential customers to buy the product. So setting a penetration price is itself a promotion strategy as well.
The economy is in the horizontal portion of the AS curve, investment spending is interest insensitive and there is no liquidity trap. According to the Keynesian transmission mechanism, if the money supply increases the interest rate will __________, investment spending will __________, the AD curve will __________, and Real GDP will __________.
Answer: does not change, does not change, does not change, does not change.
Explanation: Keynesian transmission mechanism traditional state that, changes in money supply affect aggregate demand through changes in interest rate or exchange rate.
If the money supply increases the interest rate will "does not change", investment spending will "not change ", and the AD curve "not change", and the real GDP will "not change".
Consider an economy with two types of firms, S and I. S firms always move together, but I firms move independently of each other. For both types of firm there is a 70% probability that the firm will have a 20% return and a 30% probability that the firm will have a -30% return.(a) What is the expected return for an individual firm?
(1) 14% (2) 3% (3) 5% (4) -5%
(b) The standard deviation for the return on an individual firm is closest to:
(1) 23% (2) 5.25% (3) 15% (4) 10%
Based on the probabilities and returns, the following are true:
Expected return = 5%Standard deviation = 23%Expected return is the weighted average of probabilities and returns:
= (Probability of payoff x Payoff) + (Probability of second payoff x Second payoff)
= (70% x 20%) + (30% x -30%)
= 5%
Standard deviation requires that variance is calculated first:
Variance = ∑((Probability x Difference between return and expected return) )²
= ((70% x (0.2 - 0.05)) + ( 30% x (-30% -0.05)))²
= 0.0525
Standard deviation:
= √Variance
= √0.0525
= 0.023
= 23%
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The expected return for an individual firm is 5%. The standard deviation for the return on an individual firm is closest to 23%.
Explanation:The expected return for an individual firm is calculated by adding the product of each possible outcome and its respective probability. For firm S and I, that would be (0.7 * 20%) + (0.3 * -30%) = 14% - 9% = 5%. Hence, 5% is the expected return.
Now, let's calculate the standard deviation. It gives us a measure of the variation or dispersion of the returns. First, we calculate the variance by squaring the difference between each possible outcome and the expected return, multiplying this by their respective probability, and adding these up [(0.7 * (20%-5%)^2) + (0.3 * (-30%-5%)^2)]. This results in 0.0525 or 5.25% when converted to percentage. The standard deviation is then found by finding the square root of the variance which is approximately 22.9% or closest to 23%.
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A company offering local telecommunications service combines resources with an international company that manufactures digital switching equipment to research a new type of telecommunications technology. This is an example of ________.A. joint diversification.
B. strategic alliance.
C. divestment.
D. global integration.
Answer:
A. joint diversification.
Explanation: Diversification by method of Joint Ventures, is a
Good way to diversify when it is
Uneconomical ( not economical from a single partner point of view) and risky to venture into it alone, the Puling power and competency of the two partners would provides more competitive strength and advantage. Foreign partners are needed for this kind of business ventures.
Answer:
The correct answer is B. strategic alliance.
Explanation:
A strategic alliance is an arrangement between two companies to undertake a mutually beneficial project while each retains its independence. In this case, the company make a strategic alliance with the international company .
Akira Takano, a marketing manager, is about to test the hypothesis that the sale of a particular product will increase exponentially if there is a $5 drop in the selling price of the product. Akira is involved in ________ research. A. causal B. constructive C. ethnographic D. descriptive
Answer:
casual
Explanation:
Causal analysis, also termed causal analysis, is the study of the links between causes and effects. In order to identify causal link, it is necessary to identify differences in the variables that are believed to trigger the shift in another variables and then calculate the differences in the other.
This form of study is very complicated and the investigator could never be entirely confident that there are hardly any other variables affecting the causal link, particularly when working with the perceptions and motives of individuals. There are also psychological factors far deeper than even the participant might not be conscious of.
You are hired as the consultant to a monopolistically competitive firm. The firm reports the following information about its price, marginal cost, and average total cost: P>MC, P=ATC. In what position is the monopolistically competitive firm?
A. A long run disequilibrium position
B. A short run disequilibrium position
C. A long run equilibrium position
D. A short run equilibrium position
Answer:
C. A long run equilibrium position
Explanation:
In the long run of monopolistical competition there are zero benefitis for the firms (P=ATV). This is because when there are no more incentives for firms to enter the market (which happens when there are possitive benefits, which means P>ATC). Each time a firms enter, it "captures" a part of the demand for our products, reducing demand. When benefits reduce to zero, no other firm has incentives to enter . Because a monopollistically competitive firm still faces a unique demand for its products, equilibria conditions state that it will produce the quantity delimited by the condition MC=MI (marginal cost equal to marginal income), then, marginal cost would be lower than price.This two considerations alltogheter determine the long run equilibria of a monopollistically competitive firm. See picture above.If equilibrium exists:a) the number of buyers will equal the number of sellers. b) the price in that market will not fluctuate by more than 5%. c) all individuals must have an equal amount of income. d) there will be no remaining opportunities for individuals to make themselves better off.
Answer:
Explanation:
At equilibrium market demand =market supply and there is no pareto improvement over the equilibrium.Pareto improvement is where somebody can be improved off without intensifying other.
At equilibrium,total number of quantities that purchaser needs are equivalent to amounts which a providers needs to sell at a given cost
It does not implies all people will have same pay and market cost can vary by over 5% if request or supply changes
If the recent financial crisis raises awareness about the dangers of not saving, leading to an increase in overall savings rates across the country, the loanable funds market will experience an increase in the _____ loanable funds and _____ in equilibrium interest rates. supply of; an increase demand for; an increase supply of; a decrease demand for; a decrease
Answer:
supply of; a decrease
Explanation:
If the recent financial crisis raises awareness about the dangers of not saving, leading to an increase in overall savings rates across the country, the loanable funds market will experience an increase in the supply of loanable funds and a decrease in equilibrium interest rates.