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schepotkina [342]
3 years ago
12

A perfectly competitive firm initially is earning a normal profit. Then, a decrease in demand for the firm's product occurs. Of

the following, in the long run which action listed below is the firm most likely to take? Increase the quantity it produces. Increase its advertising to increase the demand for its product. Exit the market. Increase the size of its plant.
Business
1 answer:
Natali [406]3 years ago
4 0

Answer:

Exit the market.

Explanation:

Suppose there are X firms in a competitive market and they are all making normal profits. If the demand for their products decreases, some of the firms will start to sell less, which will result in lower profits or even losses. In the long run, those firms that experience lower sales resulting in lower profits or losses, will exit the market. Once these firms exit the market, the quantity supplied should decrease, which will result in a price increase.

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Answer:

confused

Explanation:

The goods whose demand decreases in the market when the consumer income rises are known as inferior goods.

The goods whose demand increases in the market when the consumer income rises are known as normal goods.

Thus, the reasoning of the student is confused as the classification of the goods on the basics of normal or inferior depends on response of the demand when there is a change in consumer's income. Thus, the student's own perception about such classification is confused.

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3 years ago
Olivia’s employer deducts an amount from her paycheck for the medicare program. What type of withholding is being deducted from
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If your choices are:
A) tax exemption
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C) state withholding
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2 years ago
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True Taste's Restaurant and Catering serves delicious vegetarian and vegan dishes. So, when the local community became intereste
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This would be D- an opportunity for True Taste to thrive in their community.
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3 years ago
A firm's financial statements are generally assumed to include its income statement and balance sheet. Which of the following pi
stellarik [79]

Answer: Liabilities

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On the other hand, the income statement shows and entity profitability over a period of time

5 0
3 years ago
1.Danner Company expects to have a cash balance of $45,000 on January 1, 2017. Relevant monthly budget data for the first 2 mont
Nat2105 [25]

Answer:

\left[\begin{array}{ccc}&January&February\\$beginning&45000&27500\\$receipts&97000&150000\\$disbursement&-114500&-163500\\$interest&0&0\\$subtotal&27500&14000\\$minimun&20000&20000\\$Financing&&\\$beginning&0&0\\$payment/loan&0&6000\\$ending&0&6000\\&&\\$ending cash&27500&20000\\\end{array}\right]

Explanation:

On January we collect the 85,000 from revenues and the 12,00 form marketable securities.

Then, we add up each disbursement:

Materials 50000

Labor       30000

Overhead (net of depreciation) 19,500

Selling and administrative 15000

Total 114,500

Then we solve for the cash balance and get the blaance as it is higher than 20,000 we do not need financing

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