Tim and Bev Are Partners Who Share Profits and Losses

question 23

Multiple Choice

Tim and Bev are partners who share profits and losses in the ratio of 6:4.Their capital balances are $35,000 and $20,000,respectively.If Jenny is admitted to the partnership for $25,000 for a one-fourth interest,her capital balance will be:

• A)$26,667.
• B)$20,000.
• C)$25,000.
• D)$13,750.

Recognize the role of excess capacity and its implications in monopolistic competition.

Identify the factors and strategies behind product differentiation.

Understand the concept and implications of price discrimination in monopolistic competition.

Comprehend the impact of entry and exit of firms in a monopolistically competitive market on prices and profits.

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Definitions:

Stimulus Generalization

A psychological phenomenon in which a response that has been conditioned for one stimulus is evoked by another, similar stimulus.

Response Attenuation

The reduced reaction to a stimulus over time, typically as a result of repeated exposure.

Stimulus Generalization

The process by which a conditioned response is triggered by stimuli that are similar but not identical to the original conditioned stimulus.

Negative Avoidance

A learning process where actions are taken to prevent an unpleasant outcome or stimuli.