knowing the second characteristic of monopolistic competition market structure con-cerning differentiated products, briefly explain why a firm cannot make abnormal profit in the lr.

Answers

Answer 1

A firm cannot make abnormal profit in the long run in a monopolistic competition market structure is because of the presence of differentiated products. In this market structure, firms produce products that are slightly different from each other, which means that each firm has its own brand image and loyal customer base.

As a result, firms cannot charge high prices for their products as customers can easily switch to similar products offered by other firms. This leads to intense competition in the market, forcing firms to lower their prices and reducing their profit margins.

In addition, new firms can enter the market with similar or better products, further increasing the competition and reducing the market share of existing firms. This competition prevents firms from earning abnormal profits in the long run, as they cannot maintain a significant market share or charge high prices without losing customers to their competitors.

In summary, the presence of differentiated products in a monopolistic competition market structure leads to intense competition, making it difficult for firms to earn abnormal profits in the long run. This competition is due to the ease of entry for new firms and the ability of customers to easily switch to similar products offered by other firms.

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Related Questions

As a student of business you recognize that the HR director believes that a person holding this postiion would be motivated by:_____.

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As a student of business, you recognize that the HR director believes that a person holding this position would be motivated by job enrichment.

Job enrichment is the system of including motivators to current roles which will increase satisfaction and productivity for the worker. this could be done thru increasing autonomy, skill and assignment range, presenting feedback, and so on.

The difference between process enrichment and activity expansion is fine and amount. Task enrichment means improvement, or growth with the help of upgrading and development, while job growth manner to features greater responsibilities and an extended workload.

Task enrichment is a method of motivating personnel in which an activity is designed to have exciting and difficult tasks which could require more skill and can grow pay.

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When the dollar strengthens the reported consolidated earnings of us based mncs are affected by translation exposure when:_____.

Answers

When the dollar strengthens the reported consolidated earnings of us based MNCs are affected by translation exposure when unfavorably, or favorably affected.

Borrow in foreign currency and convert to local currency before revaluation. Economic risk is a type of foreign exchange risk caused by the impact of unexpected currency fluctuations on a company's future cash flows, foreign investments, and earnings.

Since when the dollar is powerful the current of foreign purchased few of U. S dollar and in the case when the dollar is weak the condition is opposite

Therefore at the time of a powerful dollar, the consolidated earning MNC is unfavorably affected and at the time of weakens, it is favorably affected

As the dollar rises (the exchange rate rises), the relative prices of domestic goods and services rise and the relative prices of foreign goods and services fall. 1. Changes in relative prices cause US exports to fall and US imports to rise.

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A multi-step income statement ________. Group of answer choices combines cost of goods sold and operating expenses considers interest revenue an operating activity is another name for a simple income statement separates cost of goods sold from operating expenses

Answers

A multi-step income statement is option(a) i.e, separates the cost of goods sold from operating expenses

What is an income statement?

An income statement, also known as a profit and loss account, is one of a company's financial statements and displays the company's receipts and outlays for a specific time period. It describes the process through which revenues are converted into net income or net profit.

An income statement's objective is to display a company's financial success over a specific time frame. It narrates the financial history of a company's operations. You may discover all of the revenue and expense accounts for a specific time period in an income statement.

The multi-step income statement breaks down a company's profits or losses for a particular reporting period. It provides a thorough evaluation of a company's financial performance. A company's operating revenue and operating expenses are separated by its non-operating revenue and non-operating expenses by its format.

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Many corporate executives reported that they use social media to communicate their socially responsible activities to customers because it?

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Many corporate executives reported that they use social media to communicate their socially responsible activities to customers because it reaches broad and diverse groups; allows them to connect directly with customers; allows them to reach specific groups more directly

Social media is a collective term for websites and applications focused on communication, community-based input, interaction, content sharing, and collaboration. People use social media to stay in touch and interact with friends, family, and diverse communities

Engage with your audience and drive website traffic. However, there can also be downsides, such as resources needed and negative feedback.

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According to interdependency theory, the net profit or loss a person encounters in a particular interaction is known as the?

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According to interdependency theory, the net profit or loss a person encounters in a particular interaction is known as the outcomes.

According to the social exchange theory known as interdependence, interpersonal interdependence—which is defined as "the process through which interacting people impact one another's experiences"—defines interpersonal relationships.

The consequences of this structure for human psychology are discussed in the interdependence theory along with the structural characteristics that define relationships. The interdependence theory views the relationships between people as being as important as the individuals themselves, in contrast to most psychological theories that place a strong emphasis on the individual, contending that people's distinct experiences, cognitions, or personalities are to blame for how they behave.

This makes the theory a truly social psychological one and provides a much-needed explanation of the nature and consequences of interdependence.

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If you pay $35.00 for a drug and the selling price is $50.00, what is the percentage markup based on cost?

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The percentage markup base is 42.86%

What is markup?

Markup means profit as percentage of cost price whereas margin means profit as percentage of the selling price.

In this case, our emphasis is on markup, in other words, we need to first of all determine profit, which is the selling price minus the cost price, then compare the profit to the cost price in order to ascertain markup.

profit=selling price-cost price

selling price=$50.00

cost price=$35.00

profit=$50.00-$35.00

profit=$15.00

markup=profit/cost price

markup=$15.00/$35.00

markup=42.86%

In essence, the markup based on cost is 42.86% rounded to 2 decimal places.

If it were to be the case of margin, the profit per unit which is $15.00 would be compared to the selling price rather than cost price

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Fernanda is a marketing professional who majored in marketing in college. She often feels like she's a demanding customer when she visits a restaurant, retail outlet, or other business, because she critiques the service she receives and hopes to be treated in such a way as to be satisfied and feel valued as a customer. Which of the following reasons to study marketing captures Fernanda's customer expectations?
a. Marketing plays an important role in society.
b. Marketing can be used in everyday life.
c. Marketing is important to business.
d. Marketing offers outstanding career opportunities.

Answers

I believe the answer is D

What does it mean when an interface does not display configuration settings when using the show running-config and show startup-config commands?

Answers

B) It means the configuration is running with default settings.

You can use the show Interfaces command to view configurable parameters, get interface statistics on the router, verify that an interface is down, and display the IP address of each interface.

Which of the displayed switches will be the STP root bridge if the default parameters are used? SW1. How does STP protect redundant Ethernet networks? Protects against frames traversing Layer 2 domains.

The show running-config command displays the current running configuration on the FWSM. The running-config keyword can only be used with the show running-config command. You cannot use this keyword with no or clear, or as a standalone command, because the CLI treats it as an unsupported command.

The question is incomplete. Please read below to find the missing content.

What does it mean when an interface does NOT display configuration settings when using the show running-config and show startup-config commands?

Question 38 options:

A) It means the interface is not active.

B) It means the configuration is running with default settings.

C) It means the interface is configured the same as the following entry.

D) It means the interface is configured the same as the previous entry.

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What is an analysis of environmental impacts of products from the design stage through end-of-life?

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Life cycle assessment is an analysis of environmental impacts of products from the design stage through end-of-life.

Life cycle assessment (LCA), also referred to as environmental LCA, is a systematic, standardized technique for quantifying the capacity environmental effects of a product or technique that arise from uncooked substances extraction to stop lifestyles.

Lifestyles-cycle evaluation (LCA) is a procedure of comparing the outcomes that a product has on the surroundings over the complete length of its lifestyle thereby increasing aid-use efficiency and lowering liabilities.

Existence cycle assessment or LCA is a technique for assessing environmental effects associated with all the stages of the existence cycle of an industrial product, manner, or service.

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How much actual competition occurs in perfectly competitive markets? some make the claim that there is actually no competition between firms in a perfectly competitive market

Answers

The competition in the perfectly competitive market are known to be few in the actual sense.

What is a perfectly competitive market?

This is the type of market that is known to have barriers to entry in the market.

In such a business or a market type there is symmetry and their is perfect information existing for the consumers and the producers.

The following are the characteristics of this type of market

Firms that produce identical goodslarge number of buyersMany sellers of the productsThe buyers and the sellers have perfect information that would enable them to make decisions.

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Buyer Kristin has a buyer agency agreement with Carlotta, a licensee. Kristin's brother, Dalton, is going to showings with Kristin and helping her decide which house is the best fit. Who is/are Carlotta's client(s)

Answers

The person that is going to be the client of Carlotta would be Kristen herself.

Who is a client?

This is the term that is used to refer to the person that is making use of the services of another professional.

The client has the agent working for him or her. Kristin is the direct client in this question.

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Credit unions are considered not-for-profit entities and therefore generally offer higher rates on savings accounts and lower rates on loans than most commercial banks do.

a. True
b. False

Answers

Credit unions are considered not-for-profit entities and therefore generally offer higher rates on savings accounts and lower rates on loans than most commercial banks do.

This statement is true.

A credit union is that financial cooperative which provides different traditional banking services. These services ranges in size from small, volunteer-only operations to large entities with thousands of participants allover the country.

Credit unions can be formed by large corporations, organizations, or any other entities for their employees as well as members.

Credit unions are owned, and operated by their participants only. Because they are not-for-profit enterprises credit unions enjoy tax-exempt status.

Credit unions always follow a basic business model in which  members pool their money. In other words they  buy shares in the cooperative.

Any income generated by the credit union is used to fund  different projects and services that will benefit the community and the interests of its members.

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Firms have a tendency to change the industry structure in their favor, making it more __ through horizontal mergers and acquisitions, since this tends to be more profitable than a fragmented one.

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Firms have a tendency to change the industry structure in their favor, making it more consolidated through horizontal mergers and acquisitions, since this tends to be more profitable than a fragmented one.

Industry structure is described as the fundamental, underlying traits that influence how a set of businesses producing closely related goods compete with one another.

Porter's industry structure perspective on strategy is based on using the industry as the analytical unit, with the players' relative bargaining power and entry barriers serving as the main sources of supernormal profit.

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A likely analytical procedure to test the accuracy of purchase discounts would be to compute the ratio of cash discounts earned to:

Answers

A likely analytical procedure to test the accuracy of purchase discounts would be to compute the ratio of cash discounts earned to : Purchase

What is Purchase Discount?

Purchase discount is deducted to the total purchases when computing for the net purchases. This account has a normal balance of credit and decreases the total amount of cost of goods sold.

What is Analytical procedures ?

Analytical procedures refer to study of significant ratios and past trends and investigating unusual fluctuations.

Under analytical review procedures, an auditor compares financial information of the current period with those of the previous periods, applying techniques of ratio analysis and investigating the causes of unusual fluctuations and deviations.

Therefore, we can conclude that the correct option is C.

Your question is incomplete, but most probably your full question was:

A likely analytical procedure to test the accuracy of purchase discounts would be to compute the ratio of cash discounts earned to:

a. accounts payable

b. notes payable

c. purchases

d. sales discounts

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Practices that reduce competition without actual documented agreements between firms to raise price are commonly referred to as ______________________ .

Answers

Practices that reduce competition without actual documented agreements between firms to raise price are commonly referred to as restrictive practices.

How does competition affect the demand curve of a firm?

When competing firms establish prices in response to the prices set by their competitors, the demand curve that each firm faces becomes ambiguous. Increased government wheat price subsidies will not make wheat growing more lucrative.

What has the regulator allowed firms to do to set prices?

The regulator has allowed for an adjustment for the firm's usual rate of profit, and then established the price that customers can be paid correspondingly.

What are Restrictive practices?

Restricted interventions are another term for restrictive practice. This is when someone is forced to do something they don't want to do or is prevented from doing something they want to do.

This can be accomplished by employing:

seclusion.environmental constraint medication (sometimes referred to as chemical restraint).mechanical restraint psychological restraint.

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A private closed economy includes:

Answers

A private closed economy includes households, businesses but not government or international trade.

What is a private closed economy?

A private closed economy is an economy that is driven by consumer spending and business investment. There is no contribution from the government. Also a private closed economy is closed off from the import or the export of goods and services.

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Income inequality in the United States has increased somewhat over the past 30 years. Two factors that appear to have contributed to this are

Answers

C: rapid technological change and expanding international trade

About Technological change:

Ours is a time of amazing new technologies. It is frequently described in epochal terms, as a time of technological renaissance propelled by brilliant new technologies, a second machine age, and a new industrial revolution.

Technological change and income inequality:

Technology drives productivity, which drives economic growth. However, as digital technologies have grown in popularity, productivity growth has slowed rather than accelerated. This is a great modern paradox.

Meanwhile, income inequality in the United States has increased sharply, more so than in other major advanced economies. Since the early 1980s, the top 10%'s share of national income has increased from 35% to 47%.

Job insecurity has grown, as have fears of a "robocalypse"—massive job losses due to automation. Intergenerational economic mobility has decreased as income inequality has increased.

Complete Question

Income inequality in the United States has increased somewhat over the past 30 years. Two factors that appear to have contributed to this are

A: tax cuts on high-income individuals and large increases in prices of stocks.

B: strong economic growth and low inflation.

C: rapid technological change and expanding international trade.

D: outsourcing of jobs by U.S. firms and cuts in taxes on capital gains.

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Jonas had a reputation for underestimating the abilities of his employees;__________workers were often let go after it had been deemed that they lacked the skills required to fulfill the responsibilities of the job.

Answers

Jonas had a reputation for underestimating the abilities of his employees; a. incompetent workers were often let go after it had been deemed that they lacked the skills required to fulfill the responsibilities of the job.

Who is an incompetent worker?

An incompetent worker can be identified by the following characteristics:

LazinessLow performanceLateness to workBlaming others.

Corrective actions should be taken to address incompetence with mandatory skills training.

However, the employer should be ready to take tougher decisions if the incompetence continues.

Answer Options:

a. incompetent

b. able

c. substandard

d. diligent

e. responsible

f. apt

Thus, the workers that Jonas may be dismissing may be incompetent.

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Diligent workers were often fired after they were found to lack the skills necessary to fulfill job responsibilities.

What is the relevance of performance appraisal?

It is a formal instrument used to analyze whether the employee is performing his duties as expected by the organization, that is, through certain requirements the HR department is able to analyze the employee's development, motivation and productivity at work.

Therefore, underestimating the skills of employees is not the ideal behavior for creating a positive culture, the ideal is for the company to provide feedback, training and enable the development of employees.

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using wheat to produce bread is an example of..?
a. value subtracting
b. value adding
c. product exchange
d. product transfer
e. product morphing

Answers

e.product morphing is an example

The Age Discrimination in Employment Act prohibits employment discrimination on the basis of age against individuals up to forty years of age. Group of answer choices False True

Answers

True, Age Discrimination in Employment Act (ADEA) forbids age discrimination against people who are age 40 or older.

It does not protect workers under the age of 40, although some states have laws that protect younger workers from age discrimination.These legislation collectively changed the workplace by removing obstacles to opportunity and establishing a foundation of fairness and equality. Congress acknowledged that age discrimination was mostly brought on by erroneous beliefs that ability was impaired by age when it passed the ADEA.Direct and indirect age discrimination are two of the most prevalent forms of this practice.

What is the Age Discrimination Act of 1978?

Age-based discrimination against older workers in hiring, firing, layoffs, compensation, and other working conditions is illegal under the federal Age Discrimination in Employment Act (ADEA). Most employees 40 and older who work for companies with 20 or more employees are covered by the statute.

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Given equal amounts of alcohol and an equal rate of drinking, every woman's intoxication rate will rise faster than every man's.
a) true
b) false

Answers

Option A. This is true. Given equal amounts of alcohol and an equal rate of drinking, every woman's intoxication rate will rise faster than every man's.

What is intoxication?

This is the term that is used to refer to the ability of alcohol to affect the mood and the emotions of a person in such a way that it would depress the central nervous system of the person that is involved.

The rate of the intoxication of the female is going to be higher because research has shown that the gender of a person is a deciding factor on intoxication. It is higher for the females. Hence Given equal amounts of alcohol and an equal rate of drinking, every woman's intoxication rate will rise faster than every man's.

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Suppose that when the price of peanut butter falls from $5 to $4 per jar, the quantity of jelly purchased rises from 10 million jars to 15 million jars.

Answers

The cross-price elasticity of demand is -1.82

Calculate the cross-price elasticity of demand:

The formula to calculate the cross-price elasticity of demand is:

(92 -91)/[(02 + 91)/2]

Cross price elasticity

(P2- A)/[(P +P)/ 2]

(15-10)/ [(15+10)/2]

(4-5)/ (4+5)/2]

5/12.5

-1/4.5

0.4

-0.22

=-1.82

Therefore, the cross-price elasticity of demand is -1.82. Since the demand is negative

The goods are said to be Complements.

Your question is incomplete. Please read below to find the missing content.

Suppose that when the price of peanut butter falls from $5 to $4 per jar, the quantity of jelly purchased rises from 10 million jars to 15 million jars. Instructions: Round your answer to two decimal places and include a negative sign if appropriate. The cross-price elasticity of demand between peanut butter and jelly using the midpoint method is The goods are?

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Many home buyers express common concerns about the energy efficiency of their homes. Of the following, which is a measurement of the efficiency of energy used to determine the effectiveness of appliances

Answers

In a case whereby Many home buyers express common concerns about the energy efficiency of their homes the measurement of the efficiency of energy that is  used to determine the effectiveness of appliances is  The EER.

What is The EER?

The EER can be regarded as the  ratio of the cooling capacity  to the power input (in watts) of a system.

It should be noted that  The higher the EER rating, the more efficient the air conditioner, in this case,  the measurement of the efficiency of energy that is  used to determine the effectiveness of appliances is  The EER.

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Advantages of using a credit card in small business financing include that?

Answers

Advantages of using a credit card in small business financing includes the following:

Provides a line of credit.

All business expenses could be paid by the employee.

Rewards are earned by the employee on every transaction.

Purchase protection is provided to the employee.

Business credit cards provide a line of credit which can be used to purchase anything that is needed for the business, from supplies to equipment every small item could be purchased.

Employees can also use the card for spending all business expenses, and one bill will be received with all the spendings and any employee spending monthly or quarterly.

All the purchases made by business card account earn rewards which includes any purchases employees make. Rewards can be easily redeemed in the variety of ways, such as gift cards, for merchandise and travelling.

Business cards also provide numerous travel and purchase protections to the employees.

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The Fisher effect indicates that an increase in the expected inflation rate will cause the real rate of interest to:

Answers

The Fisher effect indicates that an increase in the expected inflation rate will cause the real rate of interest to: increase by the same amount.

What Is the Fisher Effect?

The Fisher Effect refers to the relationship between nominal interest rates, real interest rates, and inflation expectations. The relationship was first described by American economist Irving Fisher in 1930.

The relationship is described by the following equation:

                                   (1+i) = (1+r) * (1+π)

Where:

i = Nominal Interest Rate.

r = Real Interest Rate.

π = Expected Inflation Rate.

The Fisher Effect is an important relationship in macroeconomics. It describes the causal relationship between the nominal interest rate and inflation. It states that an increase in nominal rates leads to a decrease in inflation. The key assumption is that the real interest rate remains constant or changes by a small amount.

Hence , we can conclude that the correct option is A.

Your question is incomplete, but most probably your full question was:

The Fisher effect indicates that an increase in the expected inflation rate will cause the nominal rate of interest to:

A. increase by the same amount.

B. decrease by the same amount.

C. become unpredictable.

D. remain relatively constant.

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Forrest corporation manufactures parts that are used in the production of washers and dryers. the following costs are associated with part no. 65: direct materials $50 direct labor 19 variable manufacturing overhead 22 fixed manufacturing overhead 15 variable selling costs 11 the company received a special-order inquiry from an appliance manufacturer in brazil for 15,000 units of part no. 65. only $3 of fixed manufacturing will be incurred on the order, and the variable selling costs per unit will amount to only $5. since forrest has excess capacity, the minimum price that forrest should charge the brazil manufacturer is:

Answers

Since Forrest Corporation has excess capacity, the minimum price that Forrest should charge the brazil manufacturer is $99.

What is the minimum price?

The minimum price to charge the Brazilian manufacturer when excess capacity exists is determined by the variable costs incurred by Forrest Corporation and not the total costs.

Data and Calculations:

Direct materials $50

Direct labor = $19

Variable manufacturing overhead = $22

Variable selling costs = $5

Fixed cost per unit $3

Total variable costs per unit = $99

Thus, since Forrest Corporation has excess capacity, the minimum price that Forrest should charge the brazil manufacturer is $99.

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Managers can be limited in their ability to influence the firm because of the _______________.

Answers

Managers can be limited in their ability to influence the firm because of the organizational environment.

The collection of forces that surround an organization make up its organizational environment. These influences can both present possibilities and challenges because they can restrict or enhance the organization's access to resources.

It consists of all factors that exist outside the organization's borders and have the ability to have an impact on either all or a portion of the organization. Government regulatory bodies, rival businesses, clients, vendors, and public pressure are a few examples.

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Help please
Is political freedom or economic freedom more important in determining economic​ growth?

A.
Political freedom is more​ important, which can then lead to economic freedom.
B.
Both political freedom and economic freedom are equally important in determining economic growth.
C.
Neither political freedom nor economic freedom is very important in determining economic growth.
D.
Economic freedom is more​ important, which can then lead to political freedom.

Answers

The correct alternative is letter A. Political freedom is more​ important, which can then lead to economic freedom.

How does political freedom lead to economic freedom?

Political freedom is a system that converges with democratic ideals, that is, greater freedom of social life and private property, which generates less state intervention in the economy, generating incentives for entrepreneurship and economic freedom.

Therefore, the greater the political freedom, the greater the economic freedom, which directly influences a country's economic growth rates.

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If the fed sells $5 billion of u. S. Bonds in the open market and the reserve requirement is 5 percent, m1 will eventually:.

Answers

If the fed sells $5 billion of u. S. Bonds in the open market and the reserve requirement is 5 percent, m1 will eventually decrease by $100 billion.

What is the effect of the sale of bonds on M1?

M1 is comprised of the most liquid money supply e.g. currency, demand deposits.  When the Fed sells bonds they are conducting a contractionary monetary policy. The aim of this policy is to reduce the supply of money in the economy.

Reduction in the value of money = value of bonds sold / reserve requirement

$5 billion /0.05 = $100 billion.

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Do you believe that Nelson Mandela was born a leader or made a leader?

Answers

Answer:

I believe he was born a leader

Explanation:

Because he stood up for his people and made whatever deal so that his people can be free and live a normal peace way

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