Which of the following are reasons to form a corporation? *
Less resources, more responsibility
More expenses, less revenue
More resources, less responsibility
More money, less investment

Answers

Answer 1

Answer:

More resources, less responsibility


Related Questions

An ad for Tums antacid shows a guest at a restaurant asking for Tums to alleviate his heartburn. The waitress brings him a bowl that is filled with packets of Maalox, Rolaids, Tums and other antacids. The waitress says that all antacids are the same. The guest then explains to her that Tums is different because it is the only antacid brand that has calcium. Tums is using: Group of answer choices one-sided advertising two-sided advertising comparative advertising verbal appeals visual appeals'

Answers

Answer:

comparative advertising

Explanation:

Comparative advertising is a marketing strategy where the product or service of the company would be represented as a superior good as compared to the competitor. It compared the features of the company to the competitor

Since in the given situation, it is mentioned that the guest explains to her than tums should be different as it the antacid brand that contains only calcium

So, the above represent the answer

Baltimore, MD. The line started forming at 4 a.m. By 8 a.m. there were over 3,000 people in the line snaking around Amazon's fulfillment center. Despite 85-degree heat and equally high humidity, these people were willing to stand in line for hours, just for a chance to land a job at Amazon's local fulfillment center. By the end of the day, over 4,500 job-seekers had applied for the 1,200 jobs Amazon had posted, which pay wages of around $14 an hour. Amazon held similar job fairs in 11 other cities around the nation, promising to hire as many as 50,000 new employees. Source: News accounts of August 2-4, 2017.
a. What was the apparent market surplus at the Amazon job fair?
b. If Amazon increased wages to $16 per hour, what do you predict will happen to that market surplus?

Answers

Answer:

Here the quantity demanded, that is, vacancy = 1,200  While the total number of applications for these 1,200 positions was 4,500.

Explanation:

If Amazon increased wages to $16 per hour, what do you predict will happen to that.

1. A service level agreement must be
a. A result of collaboration and negotiation
b. A simple clear summary document
Ć Stated in non-technical language
d. All of the above​

Answers

Answer:

the answer is D

I think it will helps you

Beverly, a real estate broker, had the following income and expenses in her business: Commission income $160,000 Expenses: Bribes paid to city officials (illegal under state law) 30,000 Referral fees paid (not illegal) 11,000 Travel and transportation 6,000 Supplies 5,000 Office and phone 4,000 Parking tickets/fines 1,500 How much net income must Beverly report from her business? Group of answer choices $134,000 $104,000 $102,500 $132,500

Answers

Answer:

$134,000

Explanation:

Calculation to determine How much net income must Beverly report from her business

Commission income $160,000

Less Expenses:

Commissions to other brokers$11,000

Travel and transportation $6,000

Supplies $5,000

Office and phone$4000

Net income $134,000

Therefore the amount of net income that Beverly must report from her business is $134,000

Which type of bonds are written by a municipality with you give me to repay the amount of the bond plus interest on a particular maturity date

A) government

B) preferred

C)mutual

Answers

The Correct Answer: government

Which of the following is a gauge used to measure distance traveled?

Answers

Answer:

please give me brainlist and follow

Explanation:

An odometer or odograph is an instrument used for measuring the distance traveled by a vehicle, such as a bicycle or car. The device may be electronic, mechanical, or a combination of the two (electromechanical).

The equation of exchange states

Answers

[tex] \texttt{The equation of exchange states}[/tex]

Anatomy of the Exchange Equation There are different variants of the equation (M * V = P * T, M * V = P * Y, M * V = P * Q,to take the simplest), but none of them is substantially different from the original formula of Fisher: [tex]{\boxed{ \boxed{ \bold{M * V = P * T.}}}}[/tex]

----------------------------------------------------------------------------------------------

[tex] \bold{BRAINLYMENTALMENTE}[/tex]

The equation of exchange is a mathematical expression of the quantity theory of money. In its basic form, the equation says that the total amount of money that changes hands in an economy equals the total money value of goods that change hands, or that nominal spending equals nominal income.

an increase in supply is illustrated by a supply curve sifting to the right

Answers

Answer:

Right************, ***

Select the correct example of a "benefits received" tax.
OA. Income tax.
OB. The tax that is collected at a toll booth on a highway.

Answers

Answer:

I’m thinking it’s A. But I’m not for sure

Explanation:

I looked it up ;)

On January 1, James Industries leased equipment to a customer for a five-year period, at which time possession of the leased asset will revert back to James. The equipment cost James $830,000 and has an expected useful life of seven years. Its normal sales price is $830,000. The residual value after five years is $200,000. Lease payments are due on December 31 of each year, beginning with the first payment at the end of the first year. The interest rate is 8%. (FV of $1. PV of $1. FVA of $1. PVA of $1. FVAD of $1 and PVAD of $1) (Use appropriate factor(s) from the tables provided.)
Calculate the amount of the annual lease payments.

Answers

Answer:

James Industries

The amount of the annual lease payments is:

= $207,878.86.

Explanation:

a) Data and Calculations:

Cost of equipment = $830,000

Normal sales price = $830,000

Residual value after 5 years = $200,000

Interest rate = 8%

Lease period = 5 years

From an online financial calculator:

Loan Amount  830000

Loan Term  5  years

Interest Rate  8

Results:

Payment Every Year   $207,878.86

Total of 5 Payments   $1,039,394.29

Total Interest   $209,394.29

Lease Payment Schedule:

Period    PV                      PMT                      Interest           FV

1           $830,000.00     $-207,878.86   $66,400.00    $-688,521.14

2            $688,521.14     $-207,878.86    $55,081.69  $-535,723.98

3          $535,723.98     $-207,878.86    $42,857.92  $-370,703.04

4          $370,703.04     $-207,878.86    $29,656.24  $-192,480.42

5          $192,480.42     $-207,878.86     $15,398.43  $0.00

Entry for Issuing Materials
Materials issued for the current month are as follows:
Requisition No. Material Job No. Amount
103 Plastic 400 $ 2,800
104 Steel 402 24,000
105 Glue Indirect 1,620
106 Rubber 403 3,200
107 Titanium 404 31,600
Journalize the entry to record the issuance of materials.
For a compound transaction, if an amount box does not require an entry, leave it blank.
Work in Process
Factory Overhead
Materials

Answers

Answer:

Journal entry to record the issuance of materials

Date   Accounts & explanation               Debit         Credit

          Work in process                           $61,600

          (2,800+24,000+3,200+31,600)

          Factory overhead                         $1,620

                 Material                                                       $63,220

          (To record the issuance of material)

The following information is available for the year ended December 31: Beginning raw materials inventory$12,000 Raw materials purchases 88,000 Ending raw materials inventory 11,400 Manufacturing supplies expense 800 The amount of raw materials used in production for the year is: Multiple Choice $88,600. $76,600. $89,400. $87,400.

Answers

Answer:

Direct material used= $88,600

Explanation:

Giving the following information:

Beginning raw materials inventory$12,000

Raw materials purchase 88,000

Ending raw materials inventory 11,400

To calculate the direct material used in production, we need to use the following formula:

Direct material used= beginning inventory + purchases - ending inventory

Direct material used= 12,000 + 88,000 - 11,400

Direct material used= $88,600

explain the roles of directors of the company and the roles of auditors using the categories provided explain in three points exclude executed non-executive ​

Answers

Answer:

directors are the trustees of the company's money and property, and also act as agents in the transaction which they enter into on behalf of the company. Directors are liable as trustees for breach of trust, if they misapplied the funds or committed breach of byelaws of the company.

An auditor is an authorised personnel that reviews and verifies the accuracy of financial records and ensures that companies comply with tax norms. They primarily objective is to protect businesses from fraud, highlight any discrepancies in accounting methods, among other things.

The management of City Front Inc. must decide between scrapping or reworking units that do not pass inspection. The company has 11,000 defective units that cost $6.00 per unit to manufacture. The units can be sold as is for $2.50 each or they can be reworked for $3.50 each and then sold for the full price of $9.70 each. What is the incremental income from reworking and selling the units

Answers

Answer:

If the units are reworked, income will increase by $40,700.

Explanation:

Giving the following information:

Number of units= 11,000

Sell as-is:

Selling price= $2.5

Rework:

Selling price= $9.7

Increase in costs= $3.5

We will take into account the incremental costs, the first production costs are equal to both options.

Sell as-is:

Effect on income= 11,000*2.5= $27,500 increase

Rework:

Effect on income= 11,000*(9.7 - 3.5)

Effect on income= $68,200 increase

If the units are reworked, income will increase by $40,700.

The Puyer Corporation makes and sells only one product called a Deb. The company is in the process of preparing its Selling and Administrative Expense Budget for next year. The following budget data are available: Monthly Fixed Cost Variable Cost Per Deb Sold Sales commissions $ 1.01 Shipping $ 1.51 Advertising $ 51,100 $ 0.31 Executive salaries $ 61,100 Depreciation on office equipment $ 21,100 Other $ 41,100 All of these expenses (except depreciation) are paid in cash in the month they are incurred. If the company has budgeted to sell 16,100 Debs in February, then the total budgeted fixed selling and administrative expenses for February is: Multiple Choice

Answers

Total= $159,552



Giving the following information:
The company has budgeted to sell 15,600 Debs in February.
Sales commissions $ 0.96*15,600= 14,976
Shipping $ 1.46 *15,600= 22,776
Executive salaries $ 60,600
Depreciation on office equipment $ 20,600
Other $ 40,600
Total= $159,552

write the importance of flower farming in Nepal in point​

Answers

Importance of flower cultivation is increasing day by day in Nepal because they understood the income which can be generated by floriculture and the soil also permits the cultivation of the plants at a large scale.

Morgana Company identifies three activities in its manufacturing process: machine setups, machining, and inspections. Estimated annual overhead cost for each activity is $205,900, $265,100, and $78,400, respectively. The cost driver for each activity and the estimated annual usage are number of setups 2,900, machine hours 24,100, and number of inspections 1,600. Compute the overhead rate for each activity.

Answers

Answer:

Overhead cost per set-up =$71

Overhead cost per machine hour =$11

Overhead cost per inspection=$49

Explanation:

Activity-based costing is a form of absorption costing where overheads are charged to product using cost drivers. Under this method, overheads are first analyzed and categorized by the activities responsible for them and then charged to product based on the amount of benefits enjoyed using cost drivers.

Activity rate is calculated as:

Activity cost for the period / Total cost drivers for the period

So, we can apply this formula as follows:

Overhead cost per set-up = $205,900/2,900 set-ups=$71

Overhead cost per machine hour = $265,100/24,100 hours=$11

Overhead cost per inspection = $78,400/1,600 inspection=$49

10:02 0
Today
During the year to 31
December 2019 the
following total
transactions occurred:
1. Mary withdrew a
total of
Sh.10,000.00 in
cash
2. Stock in trade was
bought, all on
credit, for
Sh.34,000.00
3. Sales were made
totaling 60,000.00
of stock in trade
which had cost
Sh.37.000.00. Of
these sales Sh.51.
000.00 were on
credit and Sh.9,
000.00 for cash
Send​

Answers

Answer:

I can't understand the question

Journal Entries (Note Received, Renewed, and Collected) 1. Prepare general journal entries for the transactions. When required, enter amounts to the nearest cent. If an amount box does not require an entry, leave it blank. Assume 360 days in a year. May 22 Received a 30-day, 6% note in payment for merchandise sale of $20,000. June 21 Received $100 cash (interest) on the old (May 22) note; the old note is renewed for 30 days at 7%. July 21 Received principal and interest on the new (June 21) note. 28 Received a 45-day, 7% note in payment for accounts receivable balance of $11,600. Sept. 11 Received $101.5 cash (interest) plus $1,200 principal on the old (July 28) note; the old note is renewed for 60 days (from September 11) at 7.5%. Nov. 10 Received principal and interest on the new (September 11) note.

Answers

Answer:

Journal Entries:

May 22 Debit 6% Note Receivable $20,000

Credit Sales Revenue $20,000

To record the receipt of a 30-day, 6% note in payment for merchandise.

June 21 Debit Cash $100

Credit Interest Revenue $100

To record a month's interest received on the note receivable.

Debit 7% Note Receivable $20,000

Credit 6% Note Receivable $20,000

To record the renewal of the 6% note with a 7% note for 30 days.

July 21 Debit Cash $20,116.67

Credit 7% Note Receivable $20,000

Credit Interest REvenue $116.67

To record the receipt of principal and interest on the new (June 21) note.

July 28 Debit 7% Note Receivable $11,600

Credit Accounts Receivable $11,600

To record the receipt of a 45-day, 7% note in payment for accounts receivable balance.

Sept. 11 Debit Cash $1,301.50

Credit Interest Revenue $101.5

Credit 7% Note Receivable $1,200

To record the receipt of cash for note and interest.

Debit 7.5% Note Receivable $10,400

Credit 7% Note Receivable $10,400

To record the renewal of the old note for 60 days at 7.5%.

Nov. 10 Debit Cash $10,530

Credit 7.5% Note Receivable $10,400

Credit Interest Revenue $130

To record full settlement of principal and interest on the note.

Explanation:

a) Data and Analysis:

May 22 6% Note Receivable $20,000 Sales Revenue $20,000.

June 21 Cash $100 Interest Revenue $100

7% Note Receivable $20,000 6% Note Receivable $20,000

July 21 Cash $20,116.67 7% Note Receivable $20,000 Interest REvenue $116.67

July 28 7% Note Receivable $11,600 Accounts Receivable $11,600

Sept. 11 Cash $1,301.50 Interest Revenue $101.5 7% Note Receivable $1,200

7.5% Note Receivable $10,400 7% Note Receivable $10,400

Nov. 10 Cash $10,530 7.5% Note Receivable $10,400 Interest Revenue $130

To be included in property, plant, and equipment, an asset must have all of the following except Group of answer choices a. the asset must be held for use. b. the asset must have an expected life of a normal operating cycle. c. the asset must be tangible in nature. d. the asset must have an expected life of more than one year. g

Answers

Answer:

b. the asset must have an expected life of a normal operating cycle.

Explanation:

A current asset can be defined as all of the assets that are being owned by a company or business entity and are expected to be converted into their cash equivalent through sales or use within a period of one year of its date on the organization's balance sheet.

Hence, to be included in property, plant, and equipment, an asset must have all of the following;

I. The asset is expected or required to be held for use

II. It must be tangible in nature.

III. It is required to have an expected life of that is typically above a year.

First and Ten Corporation’s stock returns have a covariance with the market portfolio of .0415. The standard deviation of the returns on the market portfolio is 20% and the expected market risk premium is 6.7%. The company has bonds outstanding with a total market value of $55 million and a yield to maturity of 6.5%. The company also has 4.2 million shares of common stock outstanding, each selling for $35. The company’s CEO considers the firm’s current debt-equity ratio optimal. The corporate tax rate is 21% and Treasury bills currently yield 3.4%. The company is considering the purchase of additional equipment that would cost $49 million. The expected unlevered cash flows from the equipment are $16.4 million per year for five years. Purchasing the equipment will not change the risk level of the firm. Calculate the NPV of the project.

Answers

Answer:

NPV of the project = $14,906,309.99

Explanation:

Note: See the attached excel file for calculation of the NPV of the project (in bold red color).

The weighted average cost of capital (WACC) used in calculating the discounting factor used in the attached excel file is calculated as follows:

Cost of equity = Treasury bills current yield + (Stock returns covariance with the market portfolio / Standard deviation of the returns on the market portfolio^2) * Expected market risk premium = 3.4% + (0.0415 / 20%^2) * 6.7% = 10.35%

After tax cost of debt = Bond yield to maturity * (100% - Tax rate) = 6.5% * (100% - 21%) = 5.14%

Market value of debt = $55,000,000

Market value of equity = Shares of common stock outstanding * Market price per share = 4,200,000 * $35 = $147,000,000

Total market value = Market value of equity + Market value of debt = $147,000,000 + $55,000,000 = $202,000,000

Equity share in the market value = $147,000,000 / $202,000,000 = 72.77%

Debt share in the market value = $55,000,000 / $202,000,000 = 27.23%

WACC = (Cost of equity * Equity share in the market value) + (After tax cost of debt * Debt share in the market value) = (10.35% * 72.77%) + (5.14% * 27.23%) = 8.93%

From attached excel file, we have:

NPV of the project = $14,906,309.99

Grassley Corporation allocates administrative costs on the basis of staff hours. Short-run monthly usage and anticipated long-run monthly usage of staff hours for Operating Departments 1 and 2 follow. Department 1 Department 2 Total Short-run usage (hours) 40,000 60,000 100,000 Long-run usage (hours) 45,000 55,000 100,000 If Grassley uses dual-cost accounting procedures and variable administrative costs total $200,000, the amount of variable administrative cost to allocate to Department 1 would be

Answers

Answer:

$80,000

Explanation:

Calculation to determine what the amount of variable administrative cost to allocate to Department 1 would be

Variable administrative cost to allocate to Department 1=(40,000 ÷100,000) x $200,000

Variable administrative cost to allocate to Department 1=0.4×$200,000

Variable administrative cost to allocate to Department 1= $80,000

Therefore The Variable administrative cost to allocate to Department 1 would be $80,000

Sophia just graduated from college. She just sold the furniture from her college apartment for $450 in cash. She just deposited $2,700 in graduation money into her checking account and has $7,500 saved in her savings account from working part-time. She charged gas and groceries to her credit card that she hasn't paid off yet. The total balance on her credit card is $179. Sophia has driven the same car since high school that is valued at $3,254. She doesn't have an auto loan. Her total student loan amount after graduating is $54,178. What is Sophia's net worth? (Do not include the $ sign or commas in your answer).

Answers

Answer:

Sophia's Net Worth

Sophia's net worth is:

=  ($40,453).

Explanation:

a) Data and Calculations:

Assets:

Proceeds from sale of furniture = $450

Checking account deposit =         2,700

Savings account                            7,500

Car                                                 3,254

Total assets                               $13,904

Liabilities:

Credit card                                     $179

Student loan after graduating   54,178

Total liabilities                         $54,357

Sophia's net worth =             ($40,453)

b) Sophia's net worth is in the negative because of the student loan.  This implies that she is in debt.  A negative net worth simply means that Sophia owes more than she owns.  In other words, Sophia's liabilities exceed her assets' value.

Remember that Molly has a $2500 down payment saved for this purchase. The dealer will take the $500 Cash Allowance straight off her total. How much loan does Molly need?

Answers

Answer: $3000

Explanation:

Based on the information given, the amount of loan that Milly needs will be the addition of the down payment and the cash allowance and this will be:

= Down payment + Cash allowance

= $2500 + $500

= $3000

Molly needs a loan of $3000

Answer:

Molly needs a $1,000 loan.

Dilly Farm Supply is located in a small town in the rural west. Data regarding the store's operations follow: Sales are budgeted at $305,000 for November, $325,000 for December, and $225,000 for January. Collections are expected to be 65% in the month of sale and 35% in the month following the sale. The cost of goods sold is 80% of sales. The company desires to have an ending merchandise inventory at the end of each month equal to 70% of the next month's cost of goods sold. Payment for merchandise is made in the month following the purchase. Other monthly expenses to be paid in cash are $22,600. Monthly depreciation is $28,500. Ignore taxes. Balance Sheet October 31 Assets Cash $ 34,000 Accounts receivable 84,500 Merchandise inventory 170,800 Property, plant and equipment, net of $624,000 accumulated depreciation 920,000 Total assets $ 1,209,300 Liabilities and Stockholders' Equity Accounts payable $ 254,000 Common stock 755,000 Retained earnings 200,300 Total liabilities and stockholders' equity $ 1,209,300 Accounts payable at the end of December would be:

Answers

Answer:

$204,000

Explanation:

Calculation to determine what the Accounts payable at the end of December would be:

December Account payable = ($325,000*80%)+($225,000*80%*70%)-($325,000*80%*70%)

December Account payable=$260,000+$126,000-$182,000

December purchase= $204,000

Therefore the Accounts payable at the end of December would be: $204,000

Item1 10 points Time Remaining 59 minutes 50 seconds00:59:50 eBookItem 1 Time Remaining 59 minutes 50 seconds00:59:50 Denny Corporation is considering replacing a technologically obsolete machine with a new state-of-the-art numerically controlled machine. The new machine would cost $150,000 and would have a sixteen-year useful life. Unfortunately, the new machine would have no salvage value. The new machine would cost $20,000 per year to operate and maintain, but would save $50,000 per year in labor and other costs. The old machine can be sold now for scrap for $15,000. The simple rate of return on the new machine is closest to (Ignore income taxes.)

Answers

Answer:

Denny Corporation

The simple rate of return on the new machine is closest to:

= 13.75%.

Explanation:

a) Data and Calculations:

Cost of new machine = $150,000

Estimated useful life = 16 years

Salvage Value = $0

Annual depreciation expense = $9,375 ($150,000/16)

Operation and maintenance cost per year = $20,000

Savings in labor and other costs per year = $50,000

The net savings in costs per year = $30,000 ($50,000 - $20,000)

Incremental net income = $20,625 ($30,000 - $9,375)

The simple rate of return = Net Savings per year/Cost of new machine * 100

= $20,625/$150,000 * 100

= 13.75%

b) This simple rate of return of 13.75% does not account for inflation or the time value of the investment.  So there is no discounting or calculation of the present values of the investment and the incremental net income.  Instead, it considers the annual depreciation expense that is attributable to the investment.

Tandy Company was issued a charter by the state of Indiana on January 15 of this year. The charter authorized the following: Common stock, $7 par value, 119,000 shares authorized Preferred stock, 15 percent, par value $6 per share, 6,000 shares authorized During the year, the following transactions took place in the order presented: a. Sold and issued 21,300 shares of common stock at $12 cash per share. b. Sold and issued 1,900 shares of preferred stock at $16 cash per share. c. At the end of the year, the accounts showed net income of $41,400. No dividends were declared.

Answers

Answer:

$327,400

Explanation:

Preparation of the stockholders' equity section of the balance sheet at the end of the year.

TANDY, INCORPORATED Balance Sheet (Partial) At December

TANDY, INCORPORATED

Balance Sheet (Partial)

At December 31, this year

Stockholders' equity:

Contributed capital:

Common stock $149,100

(21,300*$7)

Additional paid-in capital, common stock $106,500

[21,300 x (12-7)]

Common stock - Contributed capital $255,600

($149,100+$106,500)

Preferred stock $11,400

(1,900*$6)

Additional paid-in capital, Preferred stock $19,000

[1,900 x (16-6)]

Preferred stock - Contributed capital $30,400

($11,400+$19,000)

Total Contributed Capital $286,000

($255,600+$30,400)

Retained earnings $41,400

Total Stockholders' equity $327,400

($286,000+$41,400)

Therefore the stockholders' equity section of the balance sheet at the end of the year will be $327,400

The following labor standards have been established for a particular product: Standard labor hours per unit of output 4.5 hours Standard labor rate $ 17.60 per hour The following data pertain to operations concerning the product for the last month: Actual hours worked 6,100 hours Actual total labor cost $ 107,970 Actual output 1,300 units Required: a. What is the labor rate variance for the month

Answers

Answer:

4400 Unfavorable

Explanation:

Calculation to determine the labor rate variance for the month

First step is to calculate the Standard hours using this formula

Standard hours = Standard labor-hours per unit of output*Actual output

Let plug in the formula

Standard hours= 4.5*1,300 units

Standard hours= 5850

Now let calculate the Direct labor efficiency variance using this formula

Direct labor efficiency variance = (Standard hours - Actual hours)*Standard rate

Let plug in the formula

Direct labor efficiency variance= (5,850-6,100)*17.60

Direct labor efficiency variance= 4400 Unfavorable

Therefore the labor rate variance for the month is 4400 Unfavorable

Haver Company currently produces component RX5 for its sole product. The current cost per unit to manufacture the required 54,000 units of RX5 follows. Direct materials$4.00 Direct labor 8.00 Overhead 9.00 Total costs per unit$21.00 Direct materials and direct labor are 100% variable. Overhead is 80% fixed. An outside supplier has offered to supply the 54,000 units of RX5 for $19.00 per unit. Required:1. Determine the total incremental cost of making 54,000 units of RX5.2. Determine the total incremental cost of buying 54,000 units of RX5.3. Should the company make or buy RX5

Answers

Answer:

If the company makes the units in-house, it will save $280,800.

Explanation:

First, we need to calculate the incremental cost of making the units. We will take into account only the avoidable overhead costs, fixed costs will remain constant in both options (make or buy).

Direct materials= 4

Direct labor= 8

Avoidable overhead=  9*0.2= 1.8

Total variable cost= $13.8

Incremental cost= 54,000*13.8= $745,200

Now, the total cost of buying:

Buy= 54,000*19= $1,026,000

If the company makes the units in-house, it will save $280,800.

Problems and Applications
For each of the following characteristics, indicate whether it describes a perfectly competitive firm, a monopolistically competitive firm, both, or neither.
Characteristic Perfectly Monopolistically
Competitive Competitive
Charges a price that is the same as marginal cost.
Sells a product differentiated from those of its competitors.
Produces at the efficient scale of the firm.
Equates marginal revenue and marginal cost.
Operates with excess capacity.
Earns economic profit in the long run.

Answers

Answer:

a perfectly competitive firm

a monopolistically competitive firm

a perfectly competitive firm

Both the perfectly competitive firm and monopolistically competitive firm

a monopolistically competitive firm

Neither firms

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.

Firms are productive and allocative efficient and do not operate with excess capacity  

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. As a result, price is always higher than marginal cost

Profit is maximised when marginal revenue equal marginal cost  

An example of monopolistic competition are restaurants  

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