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4 years ago

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

Business

1 answer:

madam [21]4 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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Increases in the rate of new product introduction lead to

Lapatulllka [165]

Answer:

shifts from innovative to functional products

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3 years ago

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Bob is investing in a partnership with Andy. Bob contributes as part of his initial investment, Accounts Receivable of $120,000;

Fittoniya [83]

Answer:

Credit to Bob, Capital for $114,000

Explanation:

Based on the information given the entry that the partnership makes to record Bob's initial contribution includes a CREDIT TO BOB, CAPITAL FOR $114,000 Calculated using this formula

Bob, Capital=Accounts Receivable-Allowance for Doubtful Accounts+Cash

Let plug in the formula

Bob, Capital=$120,000-$18,000+$12,000

Bob, Capital=$114,000

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3 years ago

due to scarce resources, every individual, whether rich or poor, faces a(n) (one word) cost when choosing to produce or consume

Brrunno [24]

Due to scarce resources, each person, whether wealthy or terrible, faces opportunity charges while choosing to produce or consume extra of one right over any other.

The scarcity method is that there are fewer resources than are had to fill human needs and wants. those assets can come from the land, exertions resources, or capital resources. you're in all likelihood used to considering natural resources which include titanium, oil, coal, gold, and diamonds as scarce. In fact, they're on occasion referred to as “scarce sources” just to re-emphasize their limited availability.

Scarce resources like gold, oil, silver, and other fossil fuels are naturally uncommon. when demand exceeds the supply, these assets grow to be scarce and prices can go up. different commodities, like diamonds, command a high charge due to their limited availability and manipulation in their market.

Every commodity comes with a charge; essentially, every useful resource on the earth shows a degree of shortage. for instance, time and money are generally scarce resources. inside the real world, it's far common to locate someone with little of one aid or even both.

Learn more about scarce resources here: brainly.com/question/3081250

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2 years ago

Edsel is an autoworker on an assembly line. when asked to comment on his job, edsel says, "first, i am a nothing to this company

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Edsel is best described as alienated. An individual who is alienated is likely to be isolated or left alone in which Edsel feels because he says that he has nothing to do with the company in which he feels like he wasn't a part of it because his purpose does not relate on the main purpose of the company.

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3 years ago

12. Provide five benefits of having a budget.

DiKsa [7]

Answer:

Planning orientation

Profitability review

Assumptions review

Performance evaluations

Funding planning

Explanation:

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3 years ago

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