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2 years ago

the graph to the right depicts the per unit cost curves and demand curve facing a shirt manufacturer in a competitive industry

1 answer:

4 0

Firms will continue to join this market until the industry as a whole begins to make a typical economic profit. To encourage new enterprises to enter the market, short-term profits motivate them to do so. In the long run, businesses will produce a normal or even negative economic profit.

<h3>What is a competitive industry?</h3>

Companies may join and depart the market easily in a competitive sector since there are minimal barriers to entry.

Generally, the equation for Profit per unit is mathematically given as

P= Price - ATC

Therefore

P= $7.49 - $6.63

P= $0.86

In conclusion, Profits in the short term encourage new businesses to join the market. Firms will make a typical or even negative economic profit in the long term.

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Answer: C

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3 years ago

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PB8.

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Answer:

Products Selling price Unit variable cost

$ $

Junior 50 15

Adult 75 25

Expert 110 60

Total 235 100

The sales price per composite unit = $235

The contribution margin per composite unit

= Composite selling price - Composite unit variable cost

= $235 - $100

= $135

Break-even point in units

= Fixed cost

Contribution per unit

= $114,750

$135

= 850 units

Break-even point in dollars

= Break-even point in units x Composite selling price

= 850 units x $235

= $199,750

Income Statement

Total contribution ($135 x 850 units) 114,750

Less: Fixed cost 114,750

Net profit 0

Explanation:

Sales price per composite unit is the aggregate of all the selling prices.

Contribution margin per composite unit equals composite selling price minus composite unit variable cost.

Break-even point in units is fixed cost divided per composite contribution margin per unit.

Break-even point in dollars equal break-even point in units multiplied by selling price.

Income statement is prepared by deducting the total fixed cost from the total contribution.

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290. Many states, in search of industries that are clean, fast-growing, and pay good wages to skilled workers, are trying to att

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Answer: C. clean and fast-growing and that pay

Explanation:

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3 years ago

In monopolistically competitive markets, resources are: Group of answer choices overallocated because long-run equilibrium occur

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Answer: underallocated because long-run equilibrium occurs where price exceeds marginal cost.

Explanation:

Monopolistic competition occurs when there are many firms that are producing products that are differentiated. It should also be noted that one typical characteristics of a monopolistic competition is a large number of firms coupled with low entry barriers.

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3 years ago

Hailey Corporation pays a constant $9.45 dividend on its stock. The company will maintain this dividend for the next 13 years an

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Answer:

$64.76

Explanation:

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Present value is the sum of discounted cash flows

Present value can be calculated using a financial calculator

Cash flow from year 1 to 13 = 9.45

I = 10.7

PV = 64.76

To find the PV using a financial calculator:

1. Input the cash flow values by pressing the CF button. After inputting the value, press enter and the arrow facing a downward direction.

2. after inputting all the cash flows, press the NPV button, input the value for I, press enter and the arrow facing a downward direction.

3. Press compute

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