The difference between monopolistic competition and pure competition is that in comparison to pure competition, monopolistic competition has fewer firms, product differentiation, some price control, and relatively easy but not barrier-free entry. more firms, no product differentiation, no price control, and relatively easy but not barrier-free entry. fewer firms, product differentiation, some price control, and barrier-free entry. more firms, product differentiation, some price control, and barrier-free entry. b. the difference between monopolistic competition and pure monopoly is that in comparison to monopolistic competition, pure monopoly has at least one competitor, a patented product, little price control, and few entry barriers. at least one firm, a patented product, some price control, and few entry barriers. one firm, a patented product, some price control, and entry barriers. one firm, a unique product, price control, and entry barriers. c. product differentiation provides an advantage in the market. describes registered differences in product characteristics. only occurs when there is brand loyalty. is usually nonexistent.

If you offer up your car as a demonstration that you will pay off your loan to a bank or another financial lending institution, you are using your car as collateral. true false

Compare the sources of consumer credit 1. consumers use a prearranged loan using special checks 2. consumers use cards with no interest and non -revolving balances 3. consumers pay off debt and credit is automatically renewed 4. consumers take out a loan with a repayment date and have a specific purpose a. travel and entertainment credit b. revolving check credit c. closed-end credit d. revolving credit

Fanning company is considering the addition of a new product to its cosmetics line. the company has three distinctly different options: a skin cream, a bath oil, or a hair coloring gel. relevant information and budgeted annual income statements for each of the products follow. skin cream bath oil color gel budgeted sales in units (a) 110,000 190,000 70,000 expected sales price (b) $8 $4 $11 variable costs per unit (c) $2 $2 $7 income statements sales revenue (a × b) $880,000 $760,000 $770,000 variable costs (a × c) (220,000) (380,000) (490,000) contribution margin 660,000 380,000 280,000 fixed costs (432,000) (240,000) (76,000) net income $228,000 $140,000 $204,000 required: (a) determine the margin of safety as a percentage for each product. (b) prepare revised income statements for each product, assuming a 20 percent increase in the budgeted sales volume. (c) for each product, determine the percentage change in net income that results from the 20 percent increase in sales. (d) assuming that management is pessimistic and risk averse, which product should the company add to its cosmetics line? (e) assuming that management is optimistic and risk aggressive, which product should the company add to its cosmetics line?