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emmasim [6.3K]
3 years ago
5

For firms in perfectly (purely) competitive markets, long‑run economic profits are zero because firms will exit this market if p

rofits are less than that and enter if profits are greater than that ___.
Business
1 answer:
kolbaska11 [484]3 years ago
6 0

Answer:

The statement is true. For firms in perfectly (purely) competitive markets, long‑run economic profits are zero because firms will exit this market if profits are less than that and enter if profits are greater than that.

Explanation:

In economics, perfect competition is a form of market characterized by the impossibility of entrepreneurs to fix the sale price of the goods produced, which is instead set by the meeting of supply and demand, which in turn are an expression of utility and marginal cost. The firm cannot simultaneously determine the quantity and the market equilibrium price.

The definition of perfect competition refers to that situation in which, for the number of economic operators present on the market, each of them (whether it is an expression of demand or consumer and/or whether it is an expression of supply or producer) does not have the possibility to influence in any way, through their behavior, the sale price of the goods and/or services traded on the market.

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For each of the following statements, draw a diagram that illustrates the likely effect on the market for eggs. Indicate in each
zlopas [31]

Answer:

Please find the diagrams in the attached images

Explanation:

A) If a surgeon warns that high-cholesterol foods cause heart attacks, the demand for eggs would fall because eggs are high in cholesterol. The fall in demand would shift the demand curve to the left , price and quantity would fall.

B. Complementary goods are goods consumed together. If the price of a complementary good falls, the demand for the other good increases. If the price of bacon falls, the demand for eggs would increase. The demand curve would shift to the right, the price and quantity would increase.

C. If the price of chicken feed increases, the cost of producing eggs increases and the quantity supplied falls. The supply curve shifts to the left, prices rise and quantity falls.

D. If Caesar salad becomes more trendy, the demand for eggs increases. The demand curve shifts to the right, price and quantity increases.

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I hope my answer helps you

3 0
3 years ago
The conventional payback period ignores the time value of money, and this concerns Green Caterpillar's CFO. He hwas now asked yo
Cerrena [4.2K]

Answer: $‭1,645,379.41‬

Explanation:

The deficiency attached to the Discounted Payback period is that it stops recognizing cashflows after the project is paid off.

Year 1 discounted cash flow = 2,000,000/(1 + 10%) = $1,818,181.82

Year 2 discounted cashflow = 4,250,000 / (1 + 10%)² = $3,512,396.69

Year 3 discounted cashflow = 1,750,000/( 1 + 10%)³ = $1,314,800.90

Amount that Discounted Payback period will not recognize is;

= Cumulated discounted cash flow - Initial cost

= 1,818,181.82 + 3,512,396.69 + 1,314,800.90 - 5,000,000

= $‭1,645,379.41‬

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