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1 year ago

Competitive price taker firms always earn zero economic profit in long run equilibrium because:_______

1 answer:

3 0

Competitive price taker firms always earn zero economic profit in long-run equilibrium because of the following reasons which include easy entry & exit, small player etc.

Perfect competition exists when there are many sellers, firms can easily enter and exit, products are identical from one seller to the next, and sellers are price takers.

A perfectly competitive firm must accept the equilibrium price at which it sells goods because it is a price taker.

A perfectly competitive firm will be unable to make any sales if it charges even a small amount more than the market price.

Furthermore, a perfectly competitive firm must be a very small player in the overall market, allowing it to increase or decrease output without affecting the overall quantity supplied and price in the market.

Hence, Competitive price taker firms always earn zero economic profit in long-run equilibrium.

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The four areas in which standards of ethical conduct exist for management accountants in the united states are.

(1) Competence, (2) Confidentiality, (3) Integrity, and (4) Credibility. These standards are set by the Institute of Management Accountants (IMA).

<h3>What is Institute of Management Accountants?</h3>

The National Association of Cost Accountants, which eventually became Institute of Management Accountants, was established in Buffalo, New York in 1919. Its main office is in Montvale, New Jersey, in the United States, and it also has regional offices there as well as in Europe, the Middle East, and India.
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1 year ago

Fulbright Corp. uses the periodic inventory system. During its first year of operations, Fulbright made the following purchases

Firlakuza [10]

Answer:

The correct answer is B.

Explanation:

Giving the following information:

Purchases:

40 units at $100·

70 units at $80·

170 units at $60

Sales for the year totaled 270 units, leaving 10 units on hand at the end of the year.

First, we need to calculate the average purchase cost.

Average cost= (100*40 + 80*70 + 60*170)/280= $70.7

Now, we can calculate the value of ending inventory:

Inventory= $70.7*10= $707

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2 years ago

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3 years ago

A 55 year old woman wishes to remove funds from her Individual Retirement Account to remodel her house. The customer is subject

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Answer:

Explanation:

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2 years ago

When Kelsey decreases her price of lipstick from $7 to $5, she finds that her sales increase from 6 to 7. She faces ________ dem

yuradex [85]

Answer:

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Explanation:

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