Answer:
<em>When firms exit a market, the short-run market supply curve shifts left, causing individual firms’ profits to increase.</em>
Explanation:
The process of <em>free entry and exit of firms</em> is in a sequence as explained under-
- If there is higher demand in the market of the product as compared to its supply, then each firm in the market will receive higher price for its product.
- This will increase the prices of the product, enabling higher profits for each firm. This will make the industry attractive, enabling the introduction of newer firms in the market.
- When the new firms enter the industry, the prices of the product in the market will drop due to higher competition, now present currently. This will lead to lowering of profits for the firms in the industry.
- This will make the industry non-attractive and thereby the less competitive and less effective firms will exit the market in the short run.
- This exit of firms from the industry, will lead to higher prices again due to less supply of product in the market as compared to its demand. Hence, the profits of the firms present in the industry will increase.
Thus, it can be concluded that <em>when firms exit a market, the short-run market supply curve shifts left, causing individual firms’ profits to increase.</em>
B. The mean of its sampling distribution is equal to the true value of the parameter being estimated
Answer:
B) cost of merchandise sold divided by average inventory.
Explanation:
Inventory turnover: It is a liquidity ratio that measures the number of times on average a company sold or replaced its inventory during the period. Computed as the cost of goods sold / by the average inventory on hand during the period. Analysts compute average inventory from the beginning and ending inventory balances. The ideal inventory turnover ratio is about 4 to 6, it is a rate at which restock item is well balanced with the sold inventory.
Answer:
Difficulty managing public investment so it's done in a cost effective way
Explanation:
An Economy
This is simply known as a well arranged means by which nations supply or provide for the needs and wants of its people.
Resources
This are simply all the materials or things that is put in place that is used in producing goods and services.
Factors of production includes land, labor, capital, and entrepreneurship.
The reasons for government intervention is due to the allocation function, market failure occurs in case of Public Goods, externalities, Insufficient Competition; distribution function and stabilization function. Government influences decision making by establishing legal framework within which businesses and households operate.
Answer and Explanation:
a)
If you charge $40 for X then everyone will buy as everyone is willing to pay atleast $40. this means all three groups buy that is 3*1000 buyers.So profit from X = 3000*40= $120,000
And since everyone is willing to willing to pay atleast $60 for Y again all three groups will buy so profit from Y =3000*60=$180,000
profits=$300,000
b)
If you charge $90 and $160 for X and Y respectively you will have only 1000 buyers for each product as others are unwilling to pay this much.
So profits = 1000*90 + 1000*160=$250,000
c)
for a bundle of X and Y buyers are willing to pay a total of $150, $210 and $200 across the three categories.
So everyone will buy a bundle of 1 X and 1 Y.
profits = 150*3000= $450,000
d)
If you charge $210 only the second will buy as they are willing to pay that much so profits =1000*210=$210,000
Also by selling X at $90 group 1 will buy X; profits=1000*90=$90,000
and by selling Y at $160 group 3 will buy Y; profits=1000*160=$160,000
total profits =$460,000
