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labwork [276]
2 years ago
6

The entry and exit of firms in a purely competitive industry help to improve resource allocation because:_______

Business
1 answer:
Morgarella [4.7K]2 years ago
3 0

The reason why the entry and exit of firms in a purely competitive industry helps to improve resource allocation is because the losses result in exit and release resources to flow to markers where there are profits.

<h3 /><h3>How can the purely competitve market be beneficial?</h3>

Purely competitive industries allow for easy entry and b which leads to many firms coming into the market.

As a result, there is too much supply which leads to losses when prices drop.

As the companies suffering losses leave the market, they then invest in other markets where there are profits thereby reallocating resources.

Find out more on resource allocation at brainly.com/question/15129284

#SPJ1

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Where would you go to set up margins on a letter?
slava [35]

Answer:

B

Explanation:

on page layout tab on page setup,choose margins

3 0
3 years ago
Read 2 more answers
Barker Company paid cash to purchase two identical inventory items. The first purchase cost $18.00 cash and the second cost $20.
Virty [35]

Answer:

The correct answer is D

Explanation:

Cash flow method is the method where the costs or the expenses are moved or shifted from the starting to the end of the firm. The flow of expenses does not apply to the inventory but also involve the other factors in the extra processes to which the cost is attached.

So, the baker purchased the inventory items at different prices and then the sold the one inventory item at profit, so the amount of the cash flow from the operating activities will not affected through the method of cash flow.

8 0
3 years ago
You bought four put options (each on 100 shares) on EZ stock with an exercise price of $35 per share and an option price of $1.3
Stella [2.4K]

Answer:

-$ 540

Explanation:

Put Option - provides right to sell share at exercise price on expiry.

As it is an Right not Obligation, Thus, buyer will exercise the right only if he is gaining at expiry and he will gain only if exercise price is higher than spot price at expiry

In this case Exercise Price ($ 35) is lower than the spot price ( $ 36.25) at expiry. Thus he will not execrise the option.

He will lose all what he spend in buying option that is $ 1.35 per share

Thus,

Net profit or loss on this investment = 4 Options * 100 Shares each * Loss of $ 1.35 per Share

Net profit or loss on this investment = 4 * 100 * (-1.35)

Net profit or loss on this investment = -$ 540

4 0
3 years ago
Question 5 of 10
Lisa [10]
Annual percentage rate !
6 0
2 years ago
Segments of business's macroenvironment include all of the following except a. the economic environment. b. the social environme
fgiga [73]

Answer:

d. the natural environment.

Explanation:

There are two business environment

The first one is microenvironment and the other one is the macro environment

The microenvironment refers to that environment that covers the business functions with respect to the general public, customers, competitors, employees, etc

While the macro environment refers to that environment that affects the business functions or its workings

It can be in various ways like

1. Political & legal  

3. Social

4. Technological

5. Demographic

6. Economical

6 0
3 years ago
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