How does the market price of a good in a monopoly market compare with the market price of the same good in a perfectly competitive market?

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Answer 1

Answer: In a monopoly, prices are usually higher because there's no competition, whereas in a competitive market items that are not priced accordingly may never sell. For example, if you are the only bread-maker in town you can charge whatever you want - if people want bread they have to pay your prices, period. But in a competitive market where there are 20 other bread-makers, your prices have to remain competitive with the other 20 or no one will buy your bread.

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When you finance a car, the car then becomes _____ for the loan. a down payment credit collateral the title?

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The best answer to the question that is being presented above would be collateral. When you finance a car, the car then becomes the collateral or the pledge of the property for the loan. This is so that the payment system is attained securely and to avoid escaping from due payment.

the answer is collateral

Because of its quality investments, Carolina Corporation has always generated 30% to 40% of its gross income from passive sources. In the current year, Carolina sold a block of stock in a company it acquired several years ago. As a result of the sale, the corporation realized a substantial long-term capital gain that will increase this year's investment income from 40% to 70% of gross income. Explain to Carolina's president why she should or should not be worried about the personal holding company tax. (Assume that the stock ownership requirement is met.)

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Answer:

It is funny how doing so well in business is not always completely beneficial. First of all, Carolina's president should be worried that her can be considered a personal holding company (PHC). PHC receive at least 60% of its adjusted ordinary gross income (AOGI) from passive sources. The other requirement is that 50% of its stock is owned by five or fewer individuals or companies. Being a PHC means more taxes, that is why Carolina Corporation should try to avoid being considered a PHC.

Carolina can avoid being considered a PHC if its other investment income (income from passive sources) along with this investment income, does not exceed 60% of its AOGI.

The revenue recognition principle dictates that revenue should be recognized in the accounting records:a. when cash is received
b. in the period that income taxes are paid
c. when it is earned.
d. at the end of the month.

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C. When it is earned. The revenue recognition principle is one of the basic concepts of accounting. It is the principle behind the accrual method of accounting and matching principle. Revenue recognition states that revenue is recorded when they are realized, realizable or earned. Normally, it is when the goods have already been delivered or when the service has already been rendered regardless of when the cash is received.

Which statement explains why people benefit from making a budget?A)competition holds prices down
B)surpluses are less desirable than deficits
C)people have scare resources and must make choices
D) the government allows freedom of choice

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C)people have scare resources and must make choices

if george earned $50,000 and was taxed $7,500, while julia earned $80,000 and was taxed $9,000, what type of income tax structure exists in their country?

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Hey there

The correct answer is regressive income tax.

Regressive income tax is the type of income tax structure that exists in their country

the answer is regressive income tax.

Mary co-signs for a car loan for Barbara. What can happen to the car if Barbara misses a few payments on the car loan?

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Most likely, Mary would be charged a higher amount of interest for missing payments, and would be charged more and more the if she continued to miss payments.

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In which of the following situations would the price of a good be most likely to increase?An increase in production costs results from a rise in wages. A rise in demand happens too quickly for producers to increase production to keep up. A breakthrough in productive technology enables a company to increase its output. There's a sudden increase in the number of companies competing to sell the good. i think b