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.
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Answer:
The producer is experiencing diminishing marginal product.
Explanation:
The law of diminishing return explains that every additional unit consumed will have less utility/return than the previous one. Same is the case with labor productivity. The first unit of labor will yield maximum return, every additional unit will result in lesser return/productivity than the previous unit. The will continue up to the point of maximum return. After that point adding additional resources will yield less total output.
Answer:
(a) 7.5%
(b) 8.5%
(c) 9.5%
Explanation:
(a) Foreign country inflation rate - US inflation rate = Foreign country risk free rate - US risk free rate
Lets foreign country inflation rate = X
X - 1.5 = 8 - 2
X - 1.5 = 6
X = 6 + 1.5
= 7.5%
(b)
Lets foreign country infllation rate = X
X - 1.5 = 9 - 2
X - 1.5 = 7
X = 7 + 1.5
= 8.5%
(c)
Lets foreign country inflation rate = X
X - 1.5 = 10 - 2
X - 1.5 = 8
X = 7 + 1.5
= 9.5%
18a.
the y-intercept is the value of the function at x = 0.
so y-intercept is 5/8.
constant multiplier you can find by dividing a y-value by the previous y-value:
(y at x = 1) / (y at x = 0) is
(15 / 32) / (5 / 8)
but dividing by fraction is same as multiplying by reciprocal:
(15 / 32) · (8 / 5) ⇒ (15 · 8) / (32 · 5) ⇒ (3 · 1) / (4 · 1) = 3/4
(since 15 and 5 cancel to 3 and 1; 8 and 32 cancel to 1 and 4
the constant multiplier is 3/4 (you can confirm by repeat multiplying the y-values by 3/4 to get the next one)
18b.
y-intercept is 0.01
constant multplier:
(y at x = 1) / (y at x = 0) = 0.1 / 0.01 = 10
constant multiplier is 10
18c.
y = m/n(o/p)^x
y intercept is at x = 0:
y = m/n(o/p)^0
since anything to power of 0 is 1, we are left with
y = m/n
y-intercept is m/n.
The constant multiplier is o/p
i don't really have news papers or magazines around for that last bit, but if you could look for population data and such they can be exponential.
Answer:
a) $231,468.30
b) $209,259.56
c) 9.59%
Explanation:
a) to calculate FV, n=6,I=10, pv=0 and pmt=30000
b) to calculate effect of inflation On FV
N=6, I =6 (nominal interest less inflation), pv=0 and pmt=30000
c) [(231468.30-209259.56)/231468.30]x100
