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2 years ago

In the , the perfectly competitive firm will react to profits by

Business

1 answer:

ElenaW [278]2 years ago

8 0

In the long run, perfectly competitive firms will react to profits by increasing production.

Firms in a perfectly competitive world earn zero profit in the long run. While firms can earn accounting profits in the long run, they cannot earn economic profits.

In the long run, perfectly competitive firms will react to profits by decreasing production. CORRECT: In the long run, perfectly competitive firms will respond to losses by exiting the market. In the long run, perfectly competitive firms will respond to losses by reducing production.

A perfectly competitive market achieves long‐run equilibrium when all firms are earning zero economic profits and when the number of firms in the market is not changing.

In the long run, profits and losses are eliminated because an infinite number of firms are producing infinitely divisible, homogeneous products. Firms experience no barriers to entry and all consumers have perfect information.

Learn more about a perfectly competitive firm here: brainly.com/question/25327136

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A firm has current assets that could be sold for their book value of $32 million. The book value of its fixed assets is $70 mill

pickupchik [31]

Answer:

Market value of equity / book value of equity 72/52 = 1.38

The company is a little overvalued.

It means that the assets they have because the rate is declining, have a higher yield than the market, that's why their market value increase, therefore the investor will pay more to acquire the company or shares of the company because their profits will be above the common of the industry.

Explanation:

concept book value market value diference

current assets 32 millons 32 millons 0

long term assets 70 millons 100 millons +30,000,000

liabilities 50 millons 60 millons -10,000,000

TOTALS 70+32 - 50= 52 32+100-60=72 +20,000,000

Market value of equity / book value of equity 72/52 = 1.38

This ratio tries to determinate if a company is being undervalued or overvalued.

It is usually good to help a third party at the task of determinate whether or not a company's market value is suffering from speculation (when extremely overvalued)

When the ratio is below 1 It will mean that it is undervalued. The manager may interpret this that third parties see the company cheap while trading.

When it is above 1, it is overvalued, this means an investor will pay more for a portion of the company than it really has. This can lead to thinking that forecast profit is rising and because of that the investors are paying a premium. But if it gets really high, then it is saying that the company is subject to speculation and the price bubble may explode anytime.

7 0

3 years ago

selim believes that his hard work will lead to a better job performance. selim is independently motivated so he does not need to

zvonat [6]

Truly, Selim has an internal locus of control instead of an external locus of control because he believes that the better job performance he achieves is due to his hard work, and not due to supervision.

Selim, with this internal locus of control, makes things happen without being closely supervised or monitored. Selim enjoys independent motivation. He does not depend on external factors to achieve great results.

Thus, Selim has an internal locus of control.

Learn more: brainly.com/question/8790864

3 0

3 years ago

Selected accounts with some amounts omitted are as follows: Work in Process Oct. 1 Balance 24,500 Oct. 31 Goods finished X 31 Di

german

Answer:

See below

Explanation:

Given the above, we will use the below to get the factory overhead

Ending finished goods = Opening balance + Direct materials + Direct labor + Factory overhead - Goods finished during the month

Fixing the values, we will have

= $14,600 + $91,700 + $186,600 + Factory overhead -

5 0

3 years ago

What encourages people to buy shares in the ownership of a private limited company? (please if you can, give an explanation)

sertanlavr [38]

I think the main reason people buy shares of companies is to make money.
Explain:
their idea is to buy low value of things and sell high. for example, if i buy 100 shares of a company stock valued at 25$ each i will have made a total of 2,500$. if in the next few months the shares increase to $50, I can sell them for more, Like $5,000, This is doubling your investment.
Hope that helped

6 0

3 years ago

Jacob inherited his grandfather's farm when he was 16. He sold the farm to Buyer, who in turn sold it to a good faith purchaser

Anarel [89]

Answer:

Buyer took a voidable title from Jacob, and transferred a voidabale title to the GFP.

Explanation:

A voidable title is "a title that a grantee may choose to annul or void due to fraud or other irregularity, but that will remain valid unless and until the grantee chooses to void it."

Reference: Sellers International, LLC. “Voidable Title Legal Definition.” Quimbee, 2019,

4 0

3 years ago

In the ________, the perfectly competitive firm will react to profits by ________

In the , the perfectly competitive firm will react to profits by