Answer:
the difference between revenue and variable cost
Explanation:
As we know that
Producer surplus is = Total Revenue - Total Variable Cost
So here we can see that the producer surplus would be the difference between the revenue & the variable cost in the industry i.e. perfectly competitive
Hence, the second last option is correct
And, the other options are wrong
The market demand curve in perfect competition is found by A. the interaction of supply and demand at the individual firm and consumer levels. B. horizontally summing the demand curves of the individual consumers. C. utility maximizing behavior of the "representative consumer." D. horizontally summing the supply curves of the individual firms in the industry.
Answer:
b
Explanation:
A perfect competition is characterized by many buyers and sellers of homogenous goods and services. Market prices are set by the forces of demand and supply. There are no barriers to entry or exit of firms into the industry.
In the long run, firms earn zero economic profit. If in the short run firms are earning economic profit, in the long run firms would enter into the industry. This would drive economic profit to zero.
Also, if in the short run, firms are earning economic loss, in the long run, firms would exit the industry until economic profit falls to zero.
the demand curve is a graph of the quantity demanded on the vertical axis and the price on the horizontal axis. it is downward sloping
market demand curve is the aggregation of demand curves
Because goods are identical, market demand curve can be determined by horizontally summing the demand curves of the individual consumers
Jacques lives in Miami and runs a business that sells guitars. In an average year, he receives $793,000 from selling guitars. Of this sales revenue, he must pay the manufacturer a wholesale cost of $430,000; he also pays wages and utility bills totaling $301,000. He owns his showroom; if he chooses to rent it out, he will receive $15,000 in rent per year. Assume that the value of this showroom does not depreciate over the year. Also, if Jacques does not operate this guitar business, he can work as a financial advisor, receive an annual salary of $50,000 with no additional monetary costs, and rent out his showroom at the $15,000 per year rate. No other costs are incurred in running this guitar business.
Identify each of Jake's costs in the following table as either an implicit cost or an explicit cost of selling guitars.
Implicit Cost Explicit Cost
The wages and utility bills that Jake pays
The salary Jake could earn if he worked as an accountant
The wholesale cost for the guitars that Jake pays the manufacturer
The rental income Jake could receive if he chose to rent out his showroom
Complete the following table by determining Jake's accounting and economic profit of his guitar business.
Profit (Dollars)
Accounting Profit
Economic Profit
Answer:
Explicit Costs
The wages and utility bills that Jake pays
The wholesale cost for the guitars that Jake pays the manufacturer
Implicit costs
The salary Jake could earn if he worked as an accountant
The rental income Jake could receive if he chose to rent out his showroom
Accounting profit = $62,000
economic profit = $-3000
Explanation:
Explicit cost includes the amount expended in running the business. They include rent , salary and cost of raw materials
Implicit cost is the cost of the next best option forgone when one alternative is chosen over other alternatives. Jacques forgoes the opportunity to earn a salary and rent out his showroom when he started his business
Accounting profit= total revenue - explicit cost
$793,000 - ($430,000 + $301,000) = $62,000
Economic profit = accounting profit - implicit cost
$62,000 - (50,000 + 15,000) =$-3000
The ____ rate is the interest rate banks charge each other for borrowing or storing money?
A. Federal Reserve interest
B. Federal funds
C. Loan interest
Answer:
C. Loan interests
Explanation:
Answer:
Federal fund is the correct answer
Explanation:
I made a 100 on the test
What is the term for the daily activity of handling economic resources and planning for future economic goals?
Answer:
Money Management
Explanation:
Gilberto Company currently manufactures 90,000 units per year of one of its crucial parts. Variable costs are $3.20 per unit, fixed costs related to making this part are $100,000 per year, and allocated fixed costs are $87,000 per year. Allocated fixed costs are unavoidable whether the company makes or buys the part. Gilberto is considering buying the part from a supplier for a quoted price of $4.40 per unit guaranteed for a three-year period. Calculate the total incremental cost of making 90,000 and buying 90,000 units. Should the company continue to manufacture the part, or should it buy the part from the outside supplier?
Answer:
Part 1
total incremental cost of making 90,000 units = $388,000
total incremental cost of buying 90,000 units = $396,000
Part 2
There is a cost advantage of $8,000 of making than buying, therefore the company should continue to manufacture the part.
Explanation:
total incremental cost of making 90,000 units
Variable costs are ($3.20 x 90,000 units) $288,000
Fixed Costs $100,000
Total $388,000
total incremental cost of buying 90,000 units
Purchase Price ($4.40 x 90,000 units) $396,000
Total $396,000
Decision :
There is a cost advantage of $8,000 of making than buying, therefore the company should continue to manufacture the part.
On January 1, 2021, Crane Corporation had 980,000 shares of common stock outstanding. On March 1, the corporation issued 120,000 new shares to raise additional capital. On July 1, the corporation declared and issued a 2-for-1 stock split. On October 1, the corporation purchased on the market 450,000 of its own outstanding shares and retired them.
Required:
Compute the weighted average number of shares to be used in computing earnings per share for 2021.
Answer:
what subject is this i dont know
Explanation:
what subject
Marin Industries had one patent recorded on its books as of January 1, 2020. This patent had a book value of $201,600 and a remaining useful life of 8 years. During 2020, Marin incurred research and development costs of $93,000 and brought a patent infringement suit against a competitor. On December 1, 2020, Marin received the good news that its patent was valid and that its competitor could not use the process Marin had patented. The company incurred $127,500 to defend this patent. At what amount should patent(s) be reported on the December 31, 2020, balance sheet, assuming monthly amortization of patents
Answer:
The patent should be reported at $302,400 on the December 31, 2020, balance sheet.
Explanation:
Remaining useful life in month of patent on January 1, 2020 = 8 * 12 = 96 months
Remaining useful life in month of patent on December 1, 2020 = 96 - 11 = 85 months
Amortization of book value of patent in 2020 = (Patent Book value / Remaining useful life in month of patent on January 1, 2020) * 12 = ($201,600 / 96) * 12 = $25,200
Amortization of legal cost in 2020 = (Legal cost / Remaining useful life in month of patent on December 1,, 2020) * 1 = ($127,500 / 85) * 1 = $1,500
Carrying amount of patent = Patent Book value + Legal cost = $201,600 + $127,500 = $329,100
Patent book value on December 31, 2020 = Carrying amount of patent - Amortization of book value of patent in 2020 - Amortization of legal cost in 2020 = $329,100 - $25,200 - $1,500 = $302,400
Therefore, the patent should be reported at $302,400 on the December 31, 2020, balance sheet.
The company budgeted for production of 2,400 units in June, but actual production was 2,500 units. The company used 19,850 pounds of direct material and 980 direct labor-hours to produce this output. The company purchased 21,700 pounds of the direct material at $6.70 per pound. The actual direct labor rate was $19.20 per hour and the actual variable overhead rate was $1.80 per hour.
The company applies variable overhead on the basis of direct labor-hours. The direct materials purchases variance is computed when the materials are purchased.
The variable overhead efficiency variance for June is: _________
a. $36 U
b. $36 F
c. $40 U
d. $40 F
Answer:
d. $40 F
Explanation:
Calculation to determine what The variable overhead efficiency variance for June is
First step is to calculate the SH
SH = 2,500 units × 0.4 hour per unit
SH= 1,000 hours
Now let calculate the Variable overhead efficiency variance
Using this formula
Variable overhead efficiency variance = (AH - SH) × SR
Let plug in the formula
Variable overhead efficiency variance= (980 hours - 1,000 hours) × $2 per hour= (-20 hours) × $2 per hour
Variable overhead efficiency variance= $40 F
Therefore Variable overhead efficiency variance is $40 F
Let corn denote per capita consumption of corn in bushels at the county level, let price be the price per bushel of corn, let income denote per capita county income, and let rainf all be inches of rainfall during the last corn-growing season. The following simultaneous equations model imposes the equilibrium condition that supply equals demand:
corn = α1 price + β1 income + u1
corn = α2 price + β2 rainfall + γ2 rainfall 2 + u2 .
Which is the supply equation, and which is the demand equation? Explain.
Answer:
corn = α1 price + β1 income + u1 <=== Demand equation
corn = α2 price + β2 rainfall + γ2 rainfall 2 + u2 <=== Supply equation.
Explanation:
Given:
corn = α1 price + β1 income + u1 …………………………………………. (1)
corn = α2 price + β2 rainfall + γ2 rainfall 2 + u2 …………………….. (2)
From the above, equation (1) is the demand equation while equation (2) the supply equation.
Equation (1) is the demand equation because parts of the factors determining the demand for a product are the price of the product itself and the income of the buyers. However, rainfall is NOT one of the factors determining the demand for a product.
Equation (2) is the supply equation because parts of the factors determining the supply a product are the price of the product itself and other factors such as rainfall for corn in this case. However, income of the buyers is NOT one of the factors determining the supply for a product.
Influential factors such as cost, price, break-even analysis, sales potential,
and competition are evaluated as part of which phase? *
Concept development
Generating ideas
Screening ideas
Market Product
Product Development
Answer:46
Explanation:
Management of Mittel Company would like to reduce the amount of time between when a customer places an order and when the order is shipped. For the first quarter of operations during the current year the following data were reported:
Inspection time 0.2 days
Wait time (from order to start of production) 17.0 days
Process time 3.1 days
Move time 0.9 days
Queue time 4.2 days
Required:
a. Compute the throughput time. (Round your answer to 1 decimal place.)
b. Compute the manufacturing cycle efficiency (MCE) for the quarter.
c. What percentage of the throughput time was spent in non–value-added activities?
d. Compute the delivery cycle time.
e. If by using Lean Production all queue time during production is eliminated, what will be the new MCE?
Answer:1.
a)Through put time =8.4days
b)The manufacturing cycle efficiency =36.9%
c)percentage of the through put time spent on non–value-added activities =63.1%
d)Delivery time =25.4days
e) The New manufacturing cycle efficiency =73.8%
Explanation:
1. The through put time is given as
Process time + Inspection time + Move time+Queue time
Through put time=3.1 + 0.2 + 0.9 + 4.2
Through put time=8.4days
2. The manufacturing cycle efficiency
,is given as
Process ÷Through put time
manufacturing cycle efficiency
, =3.1/8.4=0.369=36.9%
3. The manufacturing cycle efficiency
, is 36.9%
Thus percentage of the throughput time spent in non–value-added activities is given as
1 - 36.9% = 63.1%
4.The delivery cycle time is calculated as
Wait time + through put time
Delivery cycle =17.0 + 8.4 = 25.4 days
5. The New manufacturing cycle efficiency is calculated as
Process ÷through put time
But the new through put time =8.4 -4.2=4.2
New manufacturing cycle efficiency =3.1 / 4.2 = 0.7380
=73.8%
Which of the following is recorded in a country’s balance of payments accounts?
Answer:
Considering there are no options to pick from, the following accounts are recorded in a country’s balance of payments accounts:
1. the current account
2. the capital account
3. the financial account.
Explanation:
Therefore;
1. The current account is part of the country’s balance of payments accounts to define the inflow and outflow of goods and services into a particular country.
2. The capital account is also a country’s balance of payments account that documents all the international capital transfers of a country.
3. The financial account is part of the country’s balance of payments accounts where the international monetary flows concerning the investment in the business, real estate, bonds, and stocks are fully recordsd.
explain 2 benefits of being self-employed.
The two benefits of being self-employed includes
one will be in controlone is at will of making his/her own work scheduleWhat is self-employment?A self-employment refers to working for oneself or as owner of a business rather than for an employer.
It is when someone earns money by working for themselves instead of for another person or company.
In conclusion, a self-employer is an entreprenuer.
Read more about self employment
brainly.com/question/20750656
On January 1, 2018, Frontier Corporation purchased for $474,000, equipment having a useful life of ten years and an estimated salvage value of $24,000. Adventure has recorded depreciation of the equipment on the straight-line method. On December 31, 2025, the equipment was sold for $84,000. What is the journal entry to record this sale
Answer:
Frontier Corporation
Journal Entry to record the sale:
Debit Cash $84,000
Credit Sale of Equipment $84,000
To record the sale of the equipment.
Others:
Debit Sale of Equipment $474,000
Credit Equipment $474,000
To transfer the equipment account to the Sale of Equipment account.
Debit Accumulated Depreciation $360,000
Credit Sale of Equipment $360,000
To transfer the accumulated depreciation to the Sale of Equipment account.
Debit Loss from Sale of Equipment $30,000
Credit Sale of Equipment $30,000
To close the Sale of Equipment account to income statement.
Explanation:
a) Data and Calculations:
January 1, 2018: Purchase of equipment = $474,000
Estimated useful life = 10 years
Estimated salvage value = $24,000
Depreciable amount = $450,000 ($474,000 - $24,000)
Straight-line Annual Depreciation Expense = $45,000 ($450,000/10)
Accumulated depreciation after 8 years = $360,000 ($45,000 * 8)
Net book value of equipment = $114,000 ($474,000 - $360,000)
December 31, 2015: Proceeds from sale of equipment = $84,000
Analysis:
Cash $84,000 Sale of Equipment $84,000
Sale of Equipment $474,000 Equipment $474,000
Accumulated Depreciation $360,000 Sale of Equipment $360,000
Loss from Sale of Equipment $30,000 Sale of Equipment $30,000
What are the dimensions of organizational climate in restaurant management?
The owner of an office building is interested in selling the building in order to raise capital for development of a large shopping mall. The building has a 30-year, 7% mortgage with 20 years of remaining payments; the original mortgage principal was $200 million. The building is fully occupied by tenants who have long-term leases of at least 20 years. The owner enjoys net income of $1 million per month after paying all operating expenses and the mortgage payment. The new owner would be able to take over the existing mortgage. a. What is the minimum offer that the owner would accept, assuming th
Answer:
the minimum price depends on the owner's discount rate. For example, if the discount rate is 12% per year or 1% per month, then the price should equal:
PV = $1,000,000 x 90.81942 (PVIFA, 1%, 240 periods) = $90,819,420
You would need to adjust the PVIFA depending on the owner's discount rate; the higher the rate, the lower the price.
According to the law of demand, as prices fall, ceteris paribus
quantity demanded decreases.
demand increases.
quantity demanded increases.
demand decreases
Answer:
quantity demanded increases
Explanation:
price and demand are inversely related
this means as price falls it increases the willingness and ability of consumers to purchase a product.
Cityscape Hotels has 200 rooms available in a major metropolitan city. The hotel is able to attract business customers during the weekdays and leisure customers during the weekend. However, the leisure customers on weekends occupy fewer rooms than do business customers on weekdays.
Thus, Cityscape plans to provide special weekend pricing to attract additional leisure customers. A hotel room is priced at $180 per room night. The cost of a hotel room night includes the following:
Cost Per Room Night (at normal occupancy)
Housekeeping service................................................................$ 23
Utilities............................................................................................7
Amenities........................................................................................3
Hotel depreciation.........................................................................55
Hotel staff (excluding housekeeping)............................................42
Total....................................................................................$130
The special weekend price is proposed for $120 per room night. At this price, it is anticipated that average occupancy for the weekend (Friday, Saturday, and Sunday) will increase from 30% to 50% of available rooms.
A. What is the contribution margin for a room night under the normal pricing if only the hotel depreciation and hotel staff (excluding housekeeping) are assumed fixed for all occupancy levels?
B. Determine the contribution margin for a room night under the proposed weekend pricing.
C. Prepare a differential analysis showing the differential income for an average weekend between the existing (Alternative 1) and discount (Alternative 2) price plan.
D. Should management accept the proposed weekend pricing plan? Explain.
Answer: See explanation and attachment
Explanation:
a. What is the contribution margin for a room night under the normal pricing if only the hotel depreciation and hotel staff (excluding housekeeping) are assumed fixed for all occupancy levels?
Price = $180
Less: Variable Costs:
House keeping staff = $23
Utilities = $7
Amenities = $3
Total variable costs = $33
Contribution margin = $147
B. Determine the contribution margin for a room night under the proposed weekend pricing.
Price = $120
Less: Variable Costs:
House keeping staff = $23
Utilities = $7
Amenities = $3
Total variable costs = $33
Contribution margin = $87
C. Prepare a differential analysis showing the differential income for an average weekend between the existing (Alternative 1) and discount (Alternative 2) price plan.
Check attachment for solution
D. Should management accept the proposed weekend pricing plan? Explain.
No. From the calculation in C, there is reduction in income.
60. Pricing decisions may include which of the following?
a. Bundling
b. Pricing Strategy
C. Target group their concepts of Value
d. All of the above
Answer:
b. Pricing Strategy is the right answer
Explanation:
please mark me as brainliest answer
Answer:
Hello There!!
Explanation:
I think the answer is possibly d. All of the above.
hope this helps,have a great day!!
~Pinky~
. During 2007, Eaton Corp. started a construction job with a total contract price of $7,000,000. It was completed on December 15, 2008. Additional data are as follows: 2007 2008 Actual costs incurred in current year $2,700,000 $3,050,000 Estimated remaining costs 2,700,000 — Billed to customer 2,400,000 4,600,000 Received from customer 2,000,000 4,800,000 Under the completed-contract method, what amount should Eaton recognize as gross profit for 2008?
Answer:
$1,250,000
Explanation:
Calculation to determine what amount should Eaton recognize as gross profit for 2008
Using this formula
2008 Recognized gross profit=Total contract price- 2007 Actual costs incurred in current year -2008 Actual costs incurred in current year
Let plug in the formula
2008 Recognized gross profit=$7,000,000 - $2,700,000 - $3,050,000
2008 Recognized gross profit=$1,250,000
Therefore The amount that Eaton should recognize as gross profit for 2008 is $1,250,000
A sum of money was shared
between Joan and Ngozi in the
ratio 5:3. If Joan's share was 40.00,
how much was the original sum of
money?
Answer:
6400
Explanation:
Let the shares of money for Joan and Ngozi be 5x and 3x respectively.
Joan's share = 40.00 (given)
Therefore,
5x = 40,00
x = 40,00/5
x = 800
5x + 3x
= 8x
= 8*800
= 6400
Original sum of money = 6400
Software Distributors reports net income of $48,000. Included in that number is depreciation expense of $6,500 and a loss on the sale of land of $4,300. A comparison of this year's and last year's balance sheets reveals a decrease in accounts receivable of $18,000, a decrease in inventory of $11,500, and an increase in accounts payable of $38,000. Required: Prepare the operating activities section of the statement of cash flows using the indirect method. (List cash outflows and any decrease in cash as negative amounts.)
Answer:
Operating Activities Section
Net Income $48,000
Adjust for non -cash items :
Depreciation expense $6,500
Loss on the sale of land $4,300
Adjust for changes in working capital :
Decrease in accounts receivable $18,000
Decrease in inventory $11,500
Increase in accounts payable $38,000
Net Cash Provided by Operating Activities $126,000
Explanation:
The Indirect Method of preparing the cash flow from operating activities section reconciles the Net Income for the Year to Operating Cash flow amount.
This reconciliation adjusts non cash items previously included in net income and changes in working capital to arrive at Operating Cash flow amount as shown above.
A disadvantage of the corporate form of business ownership is that:
a) shareholders receive dividends.
b) most shareholders have little direct control over how the company is managed.
shareholders are not personally liable for the debts
of the corporation except to
the extent of their investment.
c)the life of the corporation is ongoing even after the death of a shareholder.
Answer:
b) most shareholders have little direct control over how the company is managed.
A plant manager wants to know how much she should be willing to pay for perfect market research. Currently there are two states of nature facing her decision to expand or do nothing. Under favorable market conditions the manager would make $100,000 for the large plant and $5,000 for the small plant. Under unfavorable market conditions the large plant would lose $80,000 and the small plant would make $0. If the two states of nature are equally likely, how much should she pay for perfect information
Answer:
She should pay $25,000 for perfect information.
Explanation:
Since it is assumed that the two states of nature are equally likely, we therefore have:
P1 = Probability favorable market condition = 50%, or 0.5
P2 = Probability of unfavorable market condition = 50%, or 0.5
For large plant, we have:
Amount to make under favorable market condition = $100,000
Amount to make unfavorable market condition = -$50,000
Therefore, we have:
Expected value of the amount to make from large plant = (P1 * $100,000) + (P2 * (-$50,000)) = (0.5 * $100,000) + (0.5 * (-$50,000)) = $25,000
For small plant, we have:
Amount to make under favorable market condition = $5,000
Amount to make unfavorable market condition = $0
Therefore, we have:
Expected value of the amount to make from small plant = (P1 * $5,000) + (P2 * $0) = (0.5 * $5,000) + (0.5 * $0) = $2,500
Decision
Expected value of the amount to make from large plant = $25,000
Expected value of the amount to make from small plant = $2,500
Since the expected value of the amount to make from large plant of $25,000 is larger than the expected value of the amount to make from small plant of $2,500, this implies that the maximum the plant manager can make is $25,000.
Therefore, she should pay $25,000 for perfect information.
McCanless Co. recently purchased an asset for $2,100,000 that will be used in a 3-year project. The asset is in the 3-year MACRS class. The depreciation percentage each year is 33.33 percent, 44.45 percent, 14.81 percent, and 7.41 percent, respectively. What is the amount of depreciation in Year 2
Answer:
$933,450
Explanation:
Calculation to determine What is the amount of depreciation in Year 2
using this formula
Year 2 depreciation=Year 2 depreciation percentage* Asset purchased
Let plug in the formula
Year 2 depreciation = .4445*$2,100,000
Year 2 depreciation = $933,450
Therefore the amount of depreciation in Year 2 will be $933,450
Dennis Kozlowski, John Thain, and Raj Rajaratnam are former CEOs mentioned in the text that have been involved in corporate governance problems to one degree or another. What did Dennis Kozlowski do that was considered inappropriate behavior? Multiple Choice He provided insider information to the Goldman Sachs' board. He sold 500,000 shares of his personal stock right before a negative quarterly earnings report was released. He spent $2 million of company funds for his own birthday party. He created a Ponzi scheme that grew to $65 billion dollars before the SEC shut it down. He spent $1.2 million of company funds redecorating his office while demanding cost cutting from employees.
Answer: He spent $2 million of company funds for his own birthday party.
Explanation:
The article in question relates to the Agency problem which is a problem that arises as a result of management acting in such a way as to benefit themselves instead of the shareholders that they are supposed to be maximizing wealth for.
Dennis Kozlowski was the former CEO of Tyco. In this position, he committed several financial crimes such as throwing a $2 million birthday party that was funded by the company. He eventually went to prison for this and the other crimes.
Presented below are selected ledger accounts of Whispering Corporation as of December 31, 2020.
Cash $65,000
Administrative expenses 130,000
Selling expenses 104,000
Net sales 702,000
Cost of goods sold 273,000
Cash dividends declared (2020) 26,000
Cash dividends paid (2020) 19,500
Discontinued operations (loss before income taxes) 52,000
Depreciation expense, not recorded in 2019 39,000
Retained earnings, December 31, 2019 117,000
Effective tax rate 20%
Required:
a. Compute net income for 2020.
b. Prepare a partial income statement beginning with income from continuing operations before income tax, and including appropriate earnings per share information.
Answer:
Part a
Whispering Corporation
Income Statement for the year ended December 31, 2020.
Net Sales 702,000
Less Cost of Sales (273,000)
Gross Profit 429,000
Less Expenses
Administrative expenses (130,000)
Selling expenses (104,000)
Depreciation expense (39,000)
Net Income 195,000
Part b
Whispering Corporation
Partial income statement for the year ended December 31, 2020.
Continuing Activities 195,000
Less Discontinued operations ( 52,000
Total Comprehensive income 143,000
Explanation:
Income Statement only includes incomes and expenses.
Earnings per share is what shareholders expect to receive per share out of profits earned.
An electronics firm is currently manufacturing an item that has a variable cost of $.50 per unit and a selling price of $1.00 per unit. Fixed costs are $14,000. Current volume is 30,000 units. The firm can substantially improve the product quality by adding a new piece of equipment at an additional fixed cost of $6,000. Variable cost would increase to $.60, but volume should jump to 50,000 units due to a higherquality product. Should the company buy the new equipment
Answer: The company should not buy the new equipment
Explanation:
For the 1st case:
Revenue = Selling price × Number of units
= 1 × 30000
= $30,000
Total cost = Fixed cost + Variable cost
= 14000 + (0.5 × 30000)
= 14000 + 15000
= $29000
Profit = Revenue - Cost
= $30000 - $29000
= $1000
For the 2nd case:
Revenue = Selling price × Number of units
Revenue = Selling price × Number of units
= 1 × 50000
= $50,000
Total cost = Fixed cost + Variable cost
= 20000 + (0.6 × 50000)
= 20000 + 30000
= $50000
Profit = Revenue - Cost
= $50000 - $50000
= $0
Based on the calculation above, the company should not buy the new equipment as no profit will be made while currently a profit of $1000 is made.
If the toothpaste market is monopolistically competitive, product differentiation would not take the form of: production of many varieties of toothpaste, including those with whitening agents. quality differences among the various brands. setting the price of the product well below the price charged by the rivals. differentiation in the locations where certain toothpastes are available.
Answer:
setting the price of the product well below the price charged by the rival
Explanation:
A monopolistic competition is when there are many firms selling differentiated products in an industry. A monopoly has characteristics of both a monopoly and a perfect competition. the demand curve is downward sloping. it sets the price for its goods and services.
An example of monopolistic competition are restaurants
When firms are earning positive economic profit, in the long run, firms enter into the industry. This drives economic profit to zero
If firms are earning negative economic profit, in the long run, firms leave the industry. This drives economic profit to zero
in the long run, only normal profit is earned
If a monopolistically competitive sets price below competitors, losses would be made. So, there is no incentive to do this
how can the size of the industrial/service sector and the agriculture employment rate indicate the level of industrialization?