Answer:
The correct answer is option c.
Explanation:
The variable costs are the cost incurred on the variable factors of production. The fixed costs are the costs incurred on the fixed factors.
In the short run, there are certain factors that are fixed and others that are variable. So in the short run, some costs are fixed and others are variable.
But in the long run, there is enough time for all the factors to be changed. So all the factors are variable and cost incurred on these variables is also variable.
So we can say that in the long run, there are no fixed costs.
Answer:
The equilibrium quantity in the organic produce market will increase. The change in price depends upon the extent of change in demand and supply.
Explanation:
Advancement in technology will cause the cost of producing organic products to decline. As the cost of production decreases, the producers will be able to produce more at the same cost. As a result, the supply will increase. This will cause the supply curve to shift to the right.
At the same time, increased preferences for organic produce will increase its demand. As a result, the demand curve will shift to the right.
This rightward shift in both the demand and supply curve will increase the equilibrium quantity in the market. The change in price will depend on the extent of change in demand and supply.
If both demand and supply increase by the same proportion the equilibrium price will remain the same as earlier. If the increase in demand is more than the increase in supply the equilibrium price will increase. If the increase in supply is more than the increase in demand the equilibrium price will decrease.
The net present value would be zero.
Hope this helped! :)
Retained earnings im prtty sure I’m so sorry if I got it wrong