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g100num [7]
3 years ago
7

If a competitive firm cannot earn a profit at any level of output during a given shortminusrun ​period, then which of the follow

ing is​ FALSE?
A. It will shut down in the short run and wait until the price increases sufficiently.
B. It will exit the industry in the long run.
C. It will minimize its loss by decreasing output so that price exceeds marginal cost.
D. It will operate at a loss in the short run
Business
1 answer:
Natasha_Volkova [10]3 years ago
7 0

Answer: Option (C) is correct.

Explanation:

In a competitive market conditions, there are large number of buyers and sellers. All the firms in this market condition are selling identical products or we can say that all the goods are perfect substitutes.

Suppose if the firms earning negative economic profit then they continue to operate until the price of their goods is greater than the average variable cost and they shut down their production if the price of their goods is lower than the average variable cost.

A firm can experience normal profit, loss or supernormal in the short run.

But competitive firms cannot decreases their output to minimizes their losses.

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Holding other factors constant, if new technology becomes available that allows machines to produce manufactured goods more quic
Ber [7]

Answer: Increase; increase

Explanation:

Efficiency is so vital to business and manufacturing. The ability of a business to produce and curb minimal loss will give a boast on production and encourage manufacturers to do more, especially when they have the ability to produce in large quantity (by batches) and still get a good ratio for the number of goods manufactured. This is where machines has aided productivity, as they were introduced, productivity increased and they were minimal loss and time waste when producing. When technology allows for more of this effective machines, manufacturers will produce more and there would be a boast in investment.

4 0
3 years ago
THANK YOU GUYS FOR ALL THE HELP
photoshop1234 [79]
I just answered this to get a point sorry ☺
3 0
3 years ago
The listing agent received a full price offer that she faxed to the out-of-town seller. The seller signed the faxed copy, and fa
ExtremeBDS [4]

Answer: Yes contract has been formed.

Explanation: According to the Uniform Electronic Transaction Act (UETA), electronic transactions are just as binding as transactions made on hardcopy documents. Moreover signatures made electronically reinforces the validity of these elctronic documents.

In the scenario the actual signature was signed on a hard copy by the seller, but it was then faxed back to the listing agent. This faxed copy, showing the faxed signature, is an electronic document that confirms the existence of the contract in accordance with the UETA. This faxed signature is as enforceable as an ink signature.

6 0
3 years ago
10
Karo-lina-s [1.5K]

Answer:

C. Selling is a larger process that involves many steps that lead to and support this narrower definition of selling.

8 0
3 years ago
Read 2 more answers
​Traditionally, Fed policymakers have been​ ________ to use higher interest rates to head off potential asset bubbles​ ________.
r-ruslan [8.4K]

Answer:

D) ​hesitant; because it may cause a slowdown in the economy

Explanation:

The FED usually increases interest rates to halt rapidly increasing inflation, and it could be useful to calm down potential asset bubbles. The problem with raising interest rates is that it immediately cools down the economy and slow down economic growth. It might even stop economic growth and cause a recession.

Since higher interest rates increase the cost of borrowing for everyone in the economy (individuals, businesses), consumption decreases and investment increases. The problem with this is that private consumption represents nearly 70% of the GDP and the money multiplier is responsible for a lot of this.

5 0
3 years ago
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