All categories

2 years ago

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

1 answer:

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

You might be interested in

ABC Co. has 165 million shares outstanding and expects earnings at the end of this year of $2.05 billion. ABC plans to pay out 4

frosja888 [35]

Answer:

Share price = $85.684

Explanation:

It is given that ,Ke = cost of equity = 15% ,g = Growth = 9.2%% and Dividend and Repurchase = 40%

Now we know that

PV = CF /(Ke- g)

PV = $2.05 billion*0.4 / (0.15-0.092) = 0.84 billion /0.058

=$14137931034.483

Share price = $14137931034.483 / 165000000 million

Share price = $85.684

8 0

3 years ago

Zach is very concerned about how others view him. he spends a great deal of time strategically choosing clothing and other produ

allochka39001 [22]

Impression management is the process he is involving in.

8 0

3 years ago

Industrialized former colonial states that dominate the world economic system are?

Verizon [17]

Industrialized former colonial states that dominate the world economic system: Core Countries

5 0

1 year ago

Why is it illegal to alter the odometer on a vehicle

Lana71 [14]

Odometer reading is a vital tool in car assessment, it represents safety, real age of the vehicle, and many other general factors. The act of altering the number constitutes forgery and fraud, due to it's apparent nature. For example, if it would be legal to alter the odometer reading, then many people could buy brand new cars at their local dealerships, with reality being that those are used cars with thousands of miles on them, and used car owners will be more prone to be in car collisions, without having a clue of the real state of their car.

4 0

3 years ago

The stock is currently selling for $15.25 per share, and its noncallable $1,000.00 par value, 20-year, 9.00% bonds with semiannu

ANTONII [103]

Answer:

12.8%

Explanation:

Ra=Rf+(Rm-Rf)*Ba

Ra=?

Rf=5.5%

Rm=11.5%

Ba=1.22

Ra=5.5%+(11.5%-5.5%)*1.22

Ra=12.8%

7 0

3 years ago