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>
Answer:
The growth rate of the U.S economy in 2011 was 5.65%
Explanation:
This is a simple calculation
We use this formula to calculate percent changes from one period to another:
% change = 
We have that the GDP for 2010 was $11,150 billion and the GDP in 2011 was $11,780 billions we then apply the formula:
% change = 
% change = 
This means that the growth rate of the U.S economy in 2011 was 5.65%
Answer:
The correct answer here is A) above, demand , fall.
Explanation:
Whenever the interest rate on bond is more or above the equilibrium's rate of interest , then this means there is excess demand for the bond in the market and since this excess demand for bond will lead to decrease in the interest rate of the bond, while if the situation was opposite ( excess supply in market ) the interest rate would have risen.
Answer:
Teller's break-even point in sales dollars for 2012 is $400,000
Explanation:
The formula to compute the break even point in dollars is shown below:
Break even point (in dollars) = (Fixed expenses) ÷ (contribution ratio)
where,
Fixed expense is $120,000
And, the contribution ratio equals to
= (Contribution per unit) ÷ (sales per unit) × 100
where,
Contribution is = Selling price - variable cost per unit
= $300 - $210
= $90 per unit
Now put the values to the above formula
So, the ratio would be
= ($90 per unit) ÷ ($300 per unit) × 100
= 30%
Now put the values to the above formula
So, the value would be
= $120,000 ÷ 30%
= $400,000
Answer:
$2,010
Explanation:
The future value of the savings account in 6 years can be computed using the below future value formula:
FV=PV*(1+r)^n
FV=unknown future amount
PV=current worth of the savings account=$1,200
r=annual interest rate=5%
n=number of years envisaged=6
FV=$1,500*(1+5%)^6
FV=$1,500*(1.05)^6
FV=$1,500*1.3400956
FV=$2,010
