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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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sam bought 6 cookies from a bake sale for $3.00. how much did each cookie cost? how much would it cost to buy 10 cookies?

zaharov [31]

Each cookies cost $2.00
10 cookies would cost $5.00

3 0

2 years ago

Read 2 more answers

If the real output is at a near maximum level, which of the following should be considered?

Natasha2012 [34]

Answer:

D. the market will fail Explanation: The output at maximum level will eventually reduce demand because the product will be over in circulation which attract a deducting in its price and demand too.

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3 years ago

Walmart began offering low-priced extended warranties on home electronics after learning that its rivals such as Best Buy derive

LenaWriter [7]

Complete/Correct Question:

Walmart began offering low-priced extended warranties on home electronics after learning that its rivals such as Best Buy derived most of their profits from extended warranties. According to the Stalk and Lachenauer book, this is an example of the strategy to

A) plagiarize with pride.

B) deceive the competition.

C) devastate rivals profit sanctuaries.

D) unleash massive and overwhelming force

Answer:

c, devastate rivals profit sanctuaries

Explanation:

For Walmart to start making as much or more profits than its rival, Best Buy, it decided to head in the same direction as Best Buy by offering low-priced extended warranties on home electronics.

This action simply means that Walmart has infiltrated the profit strategy system of Best Buy and is using that a a competitive edge to also increase customer base as people will prefer to go Walmart as it has become cheaper.

Devastating rivals profit sanctuaries therefore means targeting the area or strategy of rivals to make more profit.

Cheers.

8 0

3 years ago

Which situation would increase the scarcity of a product?

Anestetic [448]

Answer:

B. one of only 2 factories that made the product shuts down.

7 0

2 years ago

Mining Corporation purchases the business assets of Open Pit Inc., including its equipment and supplies, for an agreed-to price,

11Alexandr11 [23.1K]

Answer:

A sales.

Explanation:

The uniform commercial code (UCC) is a set of standardized business laws which are put in place for the regulation of financial contracts and commercial transactions used across different states in the United States of America.

In this scenario, Mining Corporation purchases the business assets of Open Pit Inc., including its equipment and supplies, for an agreed-to price, payable in installments. Under the UCC, this transaction is a sales.

4 0

2 years ago