Answer 7
Correct option is 1) only for common shares
Earning per share is calculated only for common shares.
Common shareholders are the one which hold voting rights and preferred shareholders have right if company makes loss over dividend so preferred dividend is dedcuted from net income before calculating earning per hsare.
Note:As per guidelines only 1 question can be answered.
5. What firms in perfect competitive market and monopolistic competitive market have in common? How they...
Draw the long run equilibrium for both a perfect competitive market and Monopolistic Competitive market. Which is efficient (Define and explain efficiency carefully). Should the inefficient market be regulated? Why or why not.
QUESTION 7 Monopolistic competitive firms in the long run earn: positive economic profits. zero pure economic profits. negative economic profits. Positive, zero, or negative economic profits. QUESTION 8 Which of the following statements best describes firms under monopolistic competition? Profits will be positive in the long run. Price always equals average variable cost. In the long run, positive economic profit will be eliminated. Marginal revenue equals minimum average total cost in the short run. QUESTION 9 Which of the following...
1. The four market structures are and firms are producing a firms are produc 2. Perfect competition is a market structure in which - - product and entry is 3. Monopolistic competition is a market structure in which ing a product and entry is 4. Oligopoly is a market structure in which product and entry is - 5. Monopoly is a market structure in which firms are producing a firm supplies a product and entry 6. Oligopoly is the only...
Now that you have studied monopolistic competition, let's see how well you can distinguish a firm in a monopolistically competitive market from a firm in a perfectly competitive market. Given the description of the firm below, decide whether it applies to monopolistic competition, perfect competition, or both. You may have to adjust the scroll bar to see the complete list.Items (9 items) (Drag and drop into the appropriate area below)a firm that may earn an economic profit or loss in the short...
long run 39) What does monopolistic competition have in common with -) barriers to exit but no barriers to entry le proft in the A) a large number of fims B) a downward-sloping demand curve C) the ability to collude with respect to price D) mutual interdependence E) barriers to entry 40) An example of a fim in monopolistic competition is A) your local water company B) the sole cable television company C) the many Chinese restaurants in San Francisco...
How do monopolistic competitive firms use discount coupons to lower their prices? How do these same firms use Facebook “likes” to differentiate their products? Why is using discount coupons by monopolistic competitive firms different than starting a price war?
1. How does the product in a monopolistic competition compare with the product in a competitive market? 2. How does the seller’s demand curve in a monopolistic competition compare with the seller’s demand curve in competition? 3. Why will an monopolistic competitive firm only lose some of its customers, but not all when it raises its price? 4. What feature is the “hallmark” in monopolistic competition? 5. What short-run profit maximizing rule do monopolistic competitive firms follow? 6. If economic...
QUESTION 1 Which of the following is not a characteristic of the monopolistic competition market structure? Many sellers, each small in size relative to the overall market. Few sellers. Differentiated product. Easy, low-cost entry and exit. QUESTION 2 Which of the following is the best example of a monopolistic competitor? Wheat farmers. Restaurants. Air Canada. General Motors. QUESTION 3 In the long run, both monopolistic competition and perfect competition result in: a wide variety of brand-name choices for consumers. an...
1. Consider the last problem of Homework 2: Perfect Competition - consider a perfectly competitive market that has 4 firms in it (assume it is perfectly competitive despite their being only 4 firms). Two of the firms use technology A and two of the firms use technology B. The respective costs of producing using technology A and B are given by the cost functions: CA9A) = 40 + 29A +37A2 CB(9B) = 30 + 398 +298? Demand is given by...
In perfect competition as well as in monopolistic competition, a. profit is positive in a long-run equilibrium for each firm. b.entry and exit by firms are restricted. c. there are many firms in a single market. d. marginal revenue is equal to price for each firm. ECTION 22 Monopolistic competition differs from perfect competition because in monopolistically competitive markets a. all firms can eventually earn economic profits. b. each of the sellers offers a somewhat different product. C. strategic interactions...