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TiliK225 [7]
4 years ago
10

If mergers between firms increase throughout the economy, what would happen to the SRAS curve?

Business
2 answers:
prisoha [69]4 years ago
6 0

Answer:

b) SRAS shifts left.

Explanation:

The SRAS or Short run aggregate supply is the curve that shows the profit that companies are making from producing and selling services and products, if firms start to merge then that would initally create a shift to the left, meaning that the profit of the firms will decrease, but as they stabilize the curve will begin to shift towards the right and into balance.

SIZIF [17.4K]4 years ago
5 0
<span>b) SRAS shifts left. but i am not sure</span><span />
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Answer:

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      Profit and Loss for the year ended December 31

Sales                                                                         404,000

Cost of Goods Sold                                                 279,000

Gross Profit                                                               125,000

<em>Operating Expenses:</em>

Salaries and Wages Expense                   58,000

Office Expenses                                         16,000

Travel Expenses                                           1,000    75,000

Operating Income:                                                     50,000

Non-Operating Expenses

Income Tax Expense                                 15,000     15,000

Net Income                                                                 35,000

Explanation:

Multistep income statement makes a clear distinction on Operating Incomes and Expenses and Non-Operating Incomes and Expenses

Operating income is Profit generated from Primary activities of the company

Non-Operating Incomes and Expenses do not relate to the Primary activities of the firm.They occur as a result of secondary activities.

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Since in the given situation it is mentioned that there is the need to focus more than one market so here it should use the differentiated targeting strategy

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