The assumption in perfect competition that there is an easy entry and exit from the market implies that firms will make a zero economic profit in the long run.
<h3>Why do firms make a zero economic profit?</h3>
In a pure competition, companies are allowed to freely enter and leave.
They take advantage of this to enter a market when prices are high and economic profit is being made.
As more firms enter, the economic profit keeps decreasing as prices decrease until this profit gets to zero and then turns to economic losses.
At this point, some firms will leave the market to stop making losses. When they do, the supply will decrease which leads to prices rising once more.
The cycle will then repeat itself and keep the companies at a zero economic profit in the long run.
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Answer:
a. Taking the train into Boston, Katie reviewed the meeting minutes.
Explanation:
This is the best way to rewrite this sentence in order to avoid the problem of the dangling modifier. A dangling modifier is a word or a phrase within a sentence that modifies a word that is not clearly stated. In this case, the original sentence makes it sound as if the meeting minutes were the ones taking the train into Boston. The reviewed sentence gets rid of this confusion.
Answer:
A
Explanation:
The answer to that Question would be A
Answer:
The answer is: The selling price is $76.05
Explanation:
To calculate the markup we can use the following formula:
Markup Percentage = Gross Profit / Unit Cost
where:
- unit cost = $45
- markup percentage = 69%
- gross profit = selling price - unit cost
69% = gross profit / $45
69% x $45 = gross profit
$31.05 = gross profit
$31.05 = selling price - $45
selling price = $76.05
