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3 years ago

In the long run, each firm in a competitive industry earns

Business

1 answer:

madam [21]3 years ago

5 0

Answer:

The correct answer is option B.

Explanation:

In a competitive industry there is no restriction on entry or exit of firms in the market. So, when in the short run the firms are enjoying super normal profits or positive economic profits, this would attract potential firms to join the industry in the long run.

As a result the industry supply will increase in the long run. The increase in supply would cause the price to fall. This would further contribute in reducing revenue and profit.

This process will continue till the profit is reduced to zero. If profit falls below zero, then firms incurring loss will exit the industry. Then again zero profits will be restored by reduction in supply and increase in price.

So, we can say that perfectly competitive firms will have zero economic profits or only normal profits in the long run.

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3 years ago

Read 2 more answers

An investment earns 35% the first year, earns 40% the second year, and loses 37% the third year. The total compound return over

svetoff [14.1K]

Answer:

19.07%

Explanation:

The computation of the total compound return over the 3 years is shown below:

= (1 + investment percentage earned in first year) × (1 + investment percentage earned in second year) × (1 + investment percentage loss in second year)

= (1 + 0.35) × (1 + 0.40) × (1 - 0.37)

= 1.35 × 1.40 × 0.63

= 1.1907

= 19.07%

7 0

2 years ago

What would you predict if you had first mixed the catalase (100%) in serial solutions of varying phs of 3, 5, 7, 9, 11? what wou

lana [24]

<span>The optium pH level would be an average of these pHs, which is 7. 7 is also the mean, but the solutions of varying pH would eventually neutralize to 7.</span>

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2 years ago

Department S had no work in process at the beginning of the period. 13,934 units of direct materials were added during the perio

love history [14]

Answer:

Option (B) is correct.

Explanation:

Equivalent units of production(EUP) - Materials:

= Transferred out + Ending balance

= 10,451 units × 100% + 3,483 units × 100%

= 10,451 + 3,483

= 13,934

Equivalent units of production(EUP) - conversion:

= Transferred out + Ending balance

= 10,451 units × 100% + 3,483 units × 36%

= 10,451 + 1,253.88

= 11,704.88

Material cost = $\frac{Cost\ of\ direct\ material}{EUP\ material}\times units\ transferred\ out$

Material cost = $\frac{97,538}{13,934}\times 10,451$

= 73,157

Conversion cost = $\frac{Direct labor+overhead}{EUP\ conversion}\times units\ transferred\ out$

Conversion cost = $\frac{51,257+8,903}{11,705}\times 10,451$

Conversion cost = $\frac{60,160}{11,705}\times 10,451$

= 53,715

Therefore,

Total cost of units completed during the period(10,451 units):

= Material cost + Conversion cost

= 73,157 + 53,715

= 126,872

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3 years ago

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3 years ago