One difference between perfectly competitive and monopolistically competitive markets is that in long-run equilibrium, monopolistically competitive businesses charge a price higher than marginal cost. Hence, option A is correct.
What is the difference between monopolistic competition and perfect competition?
Excess capacity and markup over marginal cost are the two fundamental factors that separate monopolistic competition from perfect competition.
In a monopolistically competitive market, entry and exit drive each firm to a point of tangency between its demand and average total cost curve. The link between price and marginal cost is a second distinction between monopolistic competition and perfect competition.
Therefore, Option A is correct.
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The complete question has been attached in text form:
How does the long-run equilibrium for a monopolistically competitive market differ from the long-run equilibrium for a perfectly competitive market? One way in which monopolistically competitive markets and perfectly competitive markets differ is that in long-run equilibrium, monopolistically competitive firms A. charge a price greater than marginal cost . B. do not earn zero economic profits. C. charge a price less than marginal revenue. D. produce at minimum marginal cost. E. produce where marginal revenue is less than marginal cost.
the abc cement corporation produces a high quality cement that is supplied to construction companies. the potential demand and the probability of each potential demand quantity are given for the upcoming year: demand in tons probability 500,000 0.3 250,000 0.4 300,000 0.3 assuming manufacturing capacity of 700,000 tons, the estimated capacity cushion is 340,000 tons. it cannot be computed from this information. 360,000 tons. >1,000,000 tons.
The ABC Cement Corporation produces a high-quality cement that is supplied to construction companies.
the cushion capacity estimated is 360,000 tons.
How does the capacity estimate method work?Due to its practicality and efficiency in submitting data at the Station level, the Capacity Estimate method is the most widely used method of inputting data for the Resource Center. When conducting your daily, weekly, or monthly audit, you should estimate the volume of each container before entering the data. For example A two-stream station is station A. "Cans & Bottles" is bin #1. Waste is the second bin. Using the capacity estimate approach, the user entering the data determines that Bin #1 is 70% full with "Cans & Bottles" and Bin #2 is 30% full of "trash" based on their visual assessment.
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The balance sheet for Ronlad Corporation reported 180,000 shares outstanding, 271,000 shares authorized, and 24,000 shares in treasury stock. How many shares have been issued?
The number of shares that have been issued are 77,000.
What is a share?A share is a unit of equity ownership in the capital stock of a company in the financial markets, and it can also be used to refer to shares of the mutual funds, limited partnerships, and the real estate investment trusts. A share is an immovable unit of capital that symbolizes the ownership connection between the company and the shareholder. The denominated value of share is its face value, which could not be same as share's market value. The capital of firm consists of whole face value of its issued shares. A dividend is income received as compensation for holding shares. Equity, preference, deferred, redeemable, bonus, right, and shares from employee stock option programs are only a few of the several types of shares.
Here, total authorized shares are 330,000 and the outstanding shares are 230,000 and 23,000 shares in the treasury stock.
Total number of authorized shares= issued shares + shares yet to be issued
Number of new shares can be issue is= 330,000- (230,000+23,000)
= 77,000 shares
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a treasury bill purchased in december 2020 has 143 days until maturity and a bank discount yield of 2.18 percent. assume a $100 face value. a. what is the price of the bill as a percentage of face value?
The cost of the bill, expressed as a percentage of its face value, is $99.17.
being that:
face amount is $100.
discount yield: 2.18 percent, or 0.0218
equals 143 days
discount yield is equal to [(FV-P)/P] (360/d).
0.0218 = [( 100 - P )/P] × 360/143
0.0218P = (100 - P ) 2.517
0.0218 P + 2.517 P = 251.7
P = 251.7 /2.538
P = $99.17
The bond equivalent yield is now provided as follows:BEY is calculated as (face value - purchase price) / (purchase price 360) / day.
BEY = ( 100 - 99.17 ) / 99.17 × 36 / 143
BEY = 0.0083 × 2.517
BEY = 0.020
2% BEY to percent
The total of the bill is therefore $99.17. In it's final valuation.
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a potential new project has an expected salvage value of $200,000 and an expected book value of zero at the end of its 5-year expected life. what taxes would the company own at the end of year 5 because of this project's expected salvage value of their tax rate is 25%.
As a result, the company would be responsible for $50,000 in taxes related to this project after five years.
What is salvage value?After all depreciation has been properly expensed, the salvage value of an asset is its book value. The salvage value of an asset is determined by what a corporation anticipates getting in exchange for selling or dividing the asset after the end of its useful life. The amount that the object can be sold for when its useful life is up is its salvage value. The estimated value of an asset that is fixed at the end of its useful life or lease term is its residual value, which is often referred to as salvage value. The residual value is one of the lessor's main ways for calculating the amount of the lessee's periodic lease payments in lease agreements.
Why is salvage value important?Determining the salvage value of an asset aids a company in planning its depreciation schedule. This schedule's identification is crucial for financial accounting departments' bookkeeping needs, including tax deductions and calculating how much an asset will increase or decrease cash flow.
Briefing:Salvage Value = $200,000
Excepted Book Value=0
Excepted Life= 5 Year
Tax Rate= 25%
Now,
Gain over the book value = Salvage value - Expected book value
= $200,000 - 0
= $200,000
Taxes owed = Gain over the book value × Tax rate
= $200,000 × 25%
= $50,000
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ashton corporation is headquartered in pennsylvania and has a state income tax base there of $531,000. of this amount, $59,000 was nonbusiness income. ashton's pennsylvania apportionment factor is 43.85 percent. the nonbusiness income allocated to pennsylvania was $22,000. assuming a pennsylvania corporate tax rate of 8.25 percent, what is ashton's pennsylvania state tax liability?
The state tax liability is $18,890
Explanation:
The computation of the state tax liability is shown below:
= [({State income tax base - non business income) × apportionment factor} + non business income] × corporate tax rate
= [({$531,000 - $59,000) × 43.85% } + $22,000] × 8.25%
= [$472,000 × 43.85% + $22,000] × 8.25%
= $228,972 × 8.25%
= $18,890
What is the tax calculation?Tax computation refers to the working documents, statements, schedules, computations, and other supporting materials that serve as the foundation for an income tax return and must be included with the return or kept on file by the individual filing it.
What are obligations for state income taxes mean?The sum of money you owe to taxing bodies, such as your local, state, and federal governments, is known as your tax liability (e.g., the IRS). You owe your creditor money when you have a tax liability because it is a contract. Tax liabilities can arise for both people and companies.
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Because companies target different customers with different kinds of products and services, performance measures should be tailored to the specific ____________ of a company.
strategy
Because companies target different customers with different kinds of products and services, performance measures should be tailored to the specific strategy of a company.
An organization's long-term objectives and the plan it has to achieve them are referred to as its strategy. In other words, it demonstrates the strategy for achieving the stated goal. The specific steps taken to accomplish the objectives in accordance with the strategy are referred to as a tactic. A plan outlines the ways by which the outcomes (goals) will be accomplished (resources). Strategy can be predetermined or it can develop organically when an organization competes or changes its surroundings. It entails tasks like strategic planning and strategic thought. Business, operational, and transformational strategies are all types of strategy. The five Ps each stand for a different method of strategy. Plan, Ploy, Pattern, Position, and Perspective fall under this category. These five factors make it possible for a business to create a more effective plan.
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a nash equilibrium occurs when part 2 a. there is no dominant firm in a market. b. each firm is doing the best it can given its opponents' actions. c. a player can choose a strategy that is optimal regardless of its rivals' actions. d. each firm chooses the strategy that maximizes its minimum gain.
The correct response is b. each firm is doing the best it can given its opponentsʹ actions. A Nash equilibrium occurs when each firm is doing the best it can given its opponentsʹ actions.
The Nash equilibrium, which bears the name of the mathematician John Nash, is the most popular technique in game theory to describe the outcome of a non-cooperative game involving two or more participants. Each player in a Nash equilibrium is considered to be aware of the equilibrium strategies of the other players, and changing one's own strategy will not benefit anyone. Cournot first used the concept of Nash equilibrium in 1838 when he applied it to output selection by rival enterprises. The current set of strategy options represents a Nash equilibrium if each player has chosen a strategy and an action plan based on what has transpired so far in the game and no one can raise their personal expected return by changing their approach while the other players leave theirs unchanged. If two players, Alice and Bob, choose strategies A and B, then (A, B) is a Nash equilibrium if neither Alice nor Bob has access to a different strategy that maximizes their payoff in response to the other player choosing B, and neither Alice nor Bob has access to a different strategy that maximizes their payoff in response to the other player choosing A. (A, B, C, D) is a Nash equilibrium in a game where Carol and Dan are also participants if A is Alice's best response to (B, C, D), Bob's best response to (A, C, D), and so on.
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imagine a trader buys a put option on a stock with a strike price of 500 and pays a premum of 25. what is the traders break even point
By deducting the cost per share from the strike price, one can determine the put option's break-even point. The break even point is therefore 50 -25, giving us 475.
What is break even point?The break-even point in economics, business, and cost accounting is the point at which total costs and total revenues are equal, or "even." There is no net loss or gain, and one has "broken even," even though opportunity costs have been paid and capital has received the risk-adjusted, expected return.
The term "break-even point" (BEP) in accounting refers to the situation where a company's revenues and expenses were equal for a specific accounting period. It means the company "broke even," which means there were neither net profits nor losses.
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according to the federal department of health and human services, the 2020 poverty index for a family of four was $26,500 in annual income, with nearly 14 percent of texans falling below the poverty line. use your understanding of the poverty rates in texas and the information in the map to determine which statement is the most accurate
Answer:
Texas families living below the poverty line in urban areas are likely to struggle to meet basic needs after paying for housing.
Explanation:
if a monopolist is able to increase the amount of product she sells from 400 to 425 units by lowering the price of that product from $40 to $30, her marginal revenue is:
If a monopolist is able to increase the amount of product she sells from 400 to 425 units by lowering the price of that product from $40 to $30, her marginal revenue is:$-55
TR=P*Q
TR(400)=400*50=20000
TR(420)=420*45=18900
MR(n)=(TR(n)-TR(p))/(n-p)
MR(n)= MR of n th unit of output
TR(n)=TR of n units of output
TR(p)=TR of p units of output
it is true for n>p
MR(420)=(18900-20000)/(420-400)
=$-55
Sales is the whole quantity of profits generated through the sale of goods and services related to the primary operations of the enterprise. commercial revenue can also be called sales or as turnover. a few businesses acquire sales from hobby, royalties, or other fees.
Revenue definition says that it's miles the overall sum of money obtained from wearing out the enterprise operations inclusive of income.
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unlikely candidates for divestiture in a corporate restructuring effort are multiple choice weak performers. businesses in unattractive industries. businesses compatible with the company's revised diversification strategy. businesses that are cash hogs or that lack other types of resource fit. business units that lack strategic fit with the businesses to be retained.
Unlikely candidates for divestiture in a corporate restructuring effort are weak performers.
A candidate or nominee is a person who may receive an award or honor or who is seeking or being considered for a position. for example: In this case, there will be a selection process for applicants in order to be elected to public office become a member of a group.
Nomination is part of the process of selecting a candidate for election by a political party or for the awarding of honors or honors. This person is called a "candidate," although "candidate" is often used interchangeably with "candidate." A presumptive nominee is an individual or organization that believes nomination is inevitable or likely to be nominated.
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a firm has a pure discount loan with face value of $75,000 that is due in six months. the assets of the firm are currently worth $96,000. the stockholders in this firm basically own options on the assets of the firm with a strike price of .
As you owns stock in a firm that has a pure discount loan due in six months. The loan has a face value of $70,000. The assets of the firm are currently worth $96,000. The stockholders in this firm basically own a call option on the assets of the firm with a strike price of $70,000.
What Is a Call Option?Basically, a call options refers to a financial contracts that give the option buyer the right, but not an obligation to buy a stock, bond, commodity or other asset or instrument at a specified price within a specific time period.
What is a Strike price?On an options contract, a strike price refers to the the price at which the underlying security can be either bought or sold once exercised. It is also known as the exercise price and it is a key feature of an options contract.
In conclusion, as the firm has a pure discount loan with face value of $75,000 which is due in six months whereas its assets are worth $96,000, then, we will say the firm have a call option with a strike price of $96,000.
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jounralize and post closing entries and complete the closing process list all debit entries before credit entries credit account titles are authomatically indented when the amount is entered
Preparing closing entries, which involves journalizing and uploading the entries to the ledger, is the eighth phase in the accounting cycle. During closure, there are four entries. To the Income Summary account, the initial entry cancels revenue accounts.
What order should the steps for closing an account be taken in?Following is the basic order of closing entries: Clear the balances in the revenue accounts by debiting each revenue account and crediting the income summary account. To eliminate the balances in all expenditure accounts, credit all expense, accounts and debit the revenue summary account.
A journal entry debiting all revenue accounts and crediting the income summary is used to accomplish this. The same procedure is then used to calculate expenditures. Crediting the expense accounts and debiting the income summaries closes out all expenditures.
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delivery cycle time is an example of which performance measure category? multiple choice internal business processes. customer. financial. learning and growth.
Delivery cycle time is an example of financial customer learning and growth performance measure category.
What three elements make up a performance objective?The student performance, the conditions, and the criterion are the three main components of performance targets (accuracy). The quick outline provided below should help you create performance objectives that are appropriate.
How is the rate of employee turnover determined?By adding your starting and ending workforces and dividing by two, you may get your average workforce (Avg) (Avg = [B+E]/2). The number of departing employees should now be divided by your average staff count. To calculate your final turnover %, multiply [L/Avg] by 100.
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each firm embraces objectives that management believes will make the firm more successful. these specific objectives usually reflect how the firm intends to grow. do managers want it to grow by increasing profits, increasing sales, decreasing competition, or building customer satisfaction? these questions are answered by a firm's choice of pricing strategy.
These specific goals usually reflect how the company intends to grow. The managers want it to grow in accordance with the company's goals.
A manager is someone who is in charge of running a portion or the entire operation of a business. Managers can provide leadership to their teams by providing a sense of purpose and direction in which employees can put their trust.
According to Driffill, good managers help their employees grow and succeed. Continued education and training programs can assist them in learning. Employees who are well-trained improve customer service, increase profits and productivity and provide peace of mind when you are away from the office.
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zima and jin both work at the local factory producing cars. zima earns $20 per hour working the day shift, and jin earns $21 per hour working the night shift. zima and jin do the same job, have the same experience, and have the same level of education. this means that the
Based on the context of the question, and compensation principles, when Zima and jin do the same job, have the same experience, and have the same level of education. this means that the higher-paying job has a compensating wage differential of $1 per hour.
What is Compensating Wage?Compensate Wage is a term that is used to describe the additional amount of income that a given work must be offered to encourage them to accept a given unpleasant job, relative to other jobs that the worker could perform.
Generally, Compensating Wage is often referred to as Compensating differential and is described as a means to compensate workers for nonwage characteristics of the job.
In this case, given that Zima and jin do the same job, have the same experience, and have the same level of education, but Zima works in the day shift for $20 and Jin works the Night shift for $21 then, this implies that the higher-paying job has a compensating wage differential of $1 per hour.
Hence, in this case, it is concluded that the compensating wage is often used to motivate workers to do extra work.
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a treasury bond has a face value of $25,000 and a quoted price of 103.3750. what is the bond's dollar price?
Figure the bond esteem by duplicating the rate cost statement by the security's standard worth.The bond value, for instance, is $1,100 if the bond is listed at 110.0 and has a $1,000 par value.
How is the cost of a Treasury bond determined?
At the point when they mature, we pay you the presumptive worth."Interest" refers to the difference between the discounted price you pay and the face value of the item.Utilize the following formula to determine the purchase price for a particular discount rate.
How is the value of a bond determined?
Face value = (discount rate x time)/360
This Excel formula would be used to determine the value for the first month, beginning on the first day of the month following your purchase, if you purchased $10,000 in an I Bond dated May 2022:=ROUND(25*(1+0.0962/2)^(1/6),2) .ROUND(25*(1+0.0962/2)(2/6),2) would be the second month.
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when a manufacturer gives customers a small allowance to cover any potentially damaged product, this:
It's known as a swell allowance or an adjustable rate program when a manufacturer offers customers a minor allowance to compensate any potentially damaged goods.
What does the term "adjustable-rate" mean?
A house loan with an interest rate that changes over time in accordance with the market is known as an adjustable-rate mortgage, or ARM. If you want to acquire the lowest mortgage rate available at first, an ARM is an excellent choice because it often has a lower initial interest rate than fixed-rate mortgages.
What benefit does an adjustable rate offer?Early in the loan period, payments are lower and rates are lower. People can purchase more costly homes than they otherwise might since lenders can take the reduced payment into account when determining the eligibility of borrowers. Borrowers can benefit from declining rates without refinancing thanks to it.
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Price elasticity for a good depends on the share of a consumer's budget spent on a good. Other things being equal, which of the following goods has the most elastic demand? Toothbrush O Lightbulbs O TV and Internet service plan
Price elasticity of a good is influenced by the percentage of a consumer's budget that is allocated to it. The most elastic demand is - TV and Internet service plan.
The correct option is C.
The link between the percentage change in a product's quantity sought after and the percentage change in price is known as price elasticity of demand.
A price change causes a considerable change in the amount needed to satisfy an elastic demand. Demand is considered to be inelastic when the amount desired does not vary much as a result of a price modification.
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d in determining company credit ratings are discussed in the Help document associated with page 5 of the Camera & Drone Journal.)
A.) Issue additional shares of stock and use the proceeds to pay down 5-year and 10-year loans
B.) Pay off any 1-year loans (and temporarily avoid the use of 1-year loans) because 1-year loans are considered a current liability and thus reduce the company's current ratio
C.) Temporarily reduce dividend payments to shareholders and use the cash saved from lower dividend payments to pay down 5-year and 10-year loans
D.) use a portion on the company's internal cash flows and new issues of common stock to pay higher dividends to shareholders.
E.) Place increased attention on improving operating profits and operating profit margins in all four geographic regions -- the resulting growth in operating profits companywide will increase the company's interest coverage ratio
The deposit rating technique is when a deposit ranking agency (preferably a third party) takes important points of a bond, stock, security, or organization and analyses them to price them so that every body else can use these scores to use them as investments.
Why credit rating is important?A accurate deposit ranking improves credibility and shows a excellent records of paying lower back loans on time in the past. It helps banks and buyers figure out about approving mortgage applications and the charge of hobby offered.
What elements have an effect on deposit rating?Payment history, debt-to-credit ratio, length of credit score history, new credit, and the quantity of credit score you have all play a role in your deposit file and credit score score.
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which sustainable marketing principle emphasizes building long-run consumer loyalty and relationships?
Sense-of-mission advertising:a sustainable principle that says a business should talk about its mission in broad social terms rather than in terms of its products.
What exactly are marketing tenets?
Companies use marketing principles, also known as principles of marketing, to implement an efficient marketing strategy.We base our product promotion strategies on these principles.We can effectively promote goods or services by utilizing marketing principles.
What is the marketing concept's primary focus?
The Sales Concept is preoccupied with the seller's need to turn his or her product into cash, whereas the Marketing Concept is preoccupied with the needs of the buyer.The marketing concept is preoccupied with the idea of providing a product as a solution to the customer's problem (needs) in order to meet the needs of the customer.
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stock price data show periods of relatively calm interrupted by periods of enhanced price volatility. this suggests stock price data are
Stock price data show periods of relatively calm interrupted by periods of enhanced price volatility. Stock price data are heteroscedastic.
What Causes Heteroscedastic ?
Heteroscedasticity is primarily due to the presence of outliers in the data. Heteroscedasticity outliers mean that there are observations in the sample that are either small or large relative to other observations. Heteroscedasticity can also occur by omitting variables from the model.
What is heteroscedasticity and why is it important?Heteroscedasticity refers to the situation where the variances of the residuals are not equal over the range of measurements. If unequal variances are present and the populations used in the regression contain unequal variances, the analysis results may be invalid.
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question content area top part 1 safe dog company makes dog crates. the budgeted selling price is per crate, the variable rate is per crate and budgeted fixed costs are per month. what is the budgeted operating income for crates sold in a month?
The budgeted operating income for crates sold in a month is $20,000 per month.
What is the operating income?Operating income is the adjusted earnings of a business after all operating costs and depreciation have been taken into account. The charges incurred to maintain the operation of the business are known as operating expenses.
A company's operating income is computed by deducting operating costs from its gross profit. Administrative, selling, or expenditures are examples of the combination of natural expenses involved to run a business.
Operating income refers to the amount of profit that remains, after all, operating costs have been taken into account and deducted from the overall value. The financial statements, which contain a summary of a company's revenues and expenditures for a certain time, list this kind of income.
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exercise 12-9 (static) cash flows from investing activities lo p3 equipment with a book value of $65,300 and an original cost of $133,000 was sold at a loss of $14,000. paid $89,000 cash for a new truck. sold land costing $154,000 for $198,000 cash, yielding a gain of $44,000. stock investments were sold for $60,800 cash, yielding a gain of $4,150. use the above information to determine cash flows from investing activities. note: amounts to be deducted should be indicated with a minus sign.
The cash flows from investing activities, given the costs of equipment and other fixed assets, are $ 221, 100.
How to find the cash flow from investing activities?The cash flow from investing activities refers to those cash flows that are either made from the sale of fixed assets and capital assets, or lost to the purchase of these same things.
The cash flows from investing activities here is therefore:
= Gain from sale of equipment - purchase of new truck + sale of and + sale of long term investment
= ( 65, 300 - 14, 000 ) - 89, 000 + 198, 000 + 60, 800
= $ 221, 100
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you have landed an interview with your dream company. because they are out of state, they asked to do the initial interview on video. how can you best prepare to ace your video job interview? check all that apply.
As you have landed an interview with your dream company. Because they are out of state, they asked to do the initial interview on video, the best way to prepare to ace your video job interview includes:
C. Dress as you would for a face-to-face interview.D. Project an upbeat attitude by using positive words.E Position your camera at eye level.What is an interview preparation?Most of an effective interview preparation primarily involves researching the job and the company and thoughtfully considering your answers to the interview questions. In addition to the pre-interview preparation, there are also some other aspects you are required to prepare for during and after the interview.
Missing option " Focus on answers and stories that illustrate your competence. Have a prepared script to read from. o o o o o . Dress as you would for a face-to-face interview. Project an upbeat attitude by using positive words. Position your camera at eye level.
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when will it make sense to borrow to finance education beyond high school? what are some of the factors that will make borrowing to finance higher education risky?
There are some reasons that will make borrowing to finance higher education risky:
1. You'll have to pay more than you originally borrowed, thanks to interest.
2. Falling behind on student loan repayment can lead to delinquency and default.
3. Student loans can hurt your debt-to-income ratio.
Student loan debt affects more than your financial independence and your standard of living. You may find yourself sacrificing a job that offers you more purpose and fulfillment for a career with a higher salary.
Sometimes it will not make sense to borrow to finance education beyond high school, is usually a mistake. If you borrow to finance an investment; sometimes equity is a better choice because to borrow for high school is to take a risk. Indebted students may not earn enough to repay their loans after they graduate, or the worse student may fail to graduate at all. For students who cannot pay for college without borrowing, this risk is both a disincentive and a penalty.
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you're working on a new ad campaign for your photography supplies business. you use campaign manager 360 and want to work with a solution to measure app conversions, and you're also comfortable with coding. which solution should you select that meets your needs?
you're working on a new ad campaign for your photography supplies business. you use campaign manager 360 and want to work with a solution to measure app conversions- Firebase SDK.
Firebase SDKFirebase will supply resources for your Firebase project automatically. When the procedure is finished, you'll be brought to the Firebase console's overview page for your Firebase project. If you are setting up a new project, you need to install the SDK for the language of your choice. The Firebase Admin Node.js SDK is available on npm.
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what type of money is a u.s. $100 bill? group of answer choices fiat money virtual money commodity money polymer money
Fiat money is the type of money is a u.s. $100 bill.
Fiat cash is a sort of forex that isn't always sponsored with the aid of any commodity inclusive of gold or silver. it is commonly specified by way of the issuing government to be prison soft. throughout history, fiat cash changed into occasionally issued via neighborhood banks and other institutions.
A few human beings, however, use the time period fiat foreign money to explain any money issued through a central authority and used as criminal smooth. these days, the term fiat forex is commonly used as a way of distinguishing ordinary money from cryptocurrency.
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trent bought a coat on sale for 45 % off the retail price. if he paid $ 130 , what was the original retail price?\
The original retail price is $236.36
Given
Sale price = $130
Discount rate = 45%
Let original retail price be x
Sale price = Retail price - ( retail price * discount)
130 = x - ( x * 0.45)
130 = x - 0.45x
130 = 0.55 x
x = 130 * 0.55
x = $236.36
What is retail price?
The list price of a product, sometimes referred to as the manufacturer's suggested retail price, recommended retail price, or proposed retail price, is the amount that the manufacturer theoretically advises that a retailer sell it for.
The cost a customer will incur when buying a product from a retail establishment is known as the retail price. Customers will ultimately pay this amount for the goods they buy.
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if a competitive firm is currently producing a level of output at which marginal revenue exceeds marginal cost, then question 3 options: a) a one-unit increase in output will increase the firm's profit. b) a one-unit decrease in output will increase the firm's profit. c) total revenue exceeds total cost. d) total revenue exceeds total cost.
If a competitive firm is currently producing a level of output at which marginal revenue exceeds marginal cost, then one-unit increase in output will increase the firm's profit.
A perfectly competitive business must accept the equilibrium price at which it sells its products because it is a price taker. A completely competitive business will not be able to generate any sales if it seeks to charge even a small amount above the going rate.
There are numerous buyers and sellers in a market with perfect competition, and prices always reflect supply and demand. Companies only make as much money as is necessary to stay in operation. Other businesses would enter the market and reduce revenues if they were to make excessive profits.
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