A company that operates over the long term in a perfectly competitive market is compelled by competition to change its scale of operation until average cost is minimized.
More about perfectly competitive market:
In a market structure known as perfect competition, numerous businesses sell comparable goods while making almost little profit because of the intense competition.
A market that is perfectly competitive is one in which all enterprises sell the same good and where there are no barriers to entry or leave. The existence of several enterprises and the homogeneity and uniformity of the products are essential elements of perfect competition.
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Answer:
Equilibrium point.
Explanation:
The equilibrium price is the only price where the plans of consumers and the plans of producers agree—that is, where the amount consumers want to buy of the product, quantity demanded, is equal to the amount producers want to sell, quantity supplied. This common quantity is called the equilibrium quantity. At any other price, the quantity demanded does not equal the quantity supplied, so the market is not in equilibrium at that price.
Answer:
Marginal product: 118
Marginal product is 1.68 times average product
New average product: 82
Explanation:
Marginal product is the difference that we found after we add one more unit of production into the business, this means the amount of products that we produce more of, once we hire a new worker or add a new machine, in this case marginal product is 118 units more by hiring an additional worker, and the marginal product divided by the last average product is 1.68 times more, and the new average product would be 328 between 4 which is the new number of workers, which results in 82.
Answer:
Par value of equity = $4,000/500 shares
= $8 per share
No of shares repurchased = $1,000/$8
= 125 shares
Number of shares outstanding = 500 shares - 125 shares
= 375 shares
Explanation:
In this case, we need to determine the par value of shares by dividing the total worth of shares by the number of shares. Then, we will calculate number of shares repurchased by dividing the excess cash by the par value per share. Finally, we will calculate the number of shares outstanding by deducting the number of shares repurchased from the number of shares available.
Answer:
A) a non-binding price floor
Explanation:
A non-binding price floor is a price floor set below the current equilibrium price, so it really doesn't affect either the supply or demand of the product.
A binding price ceiling will result in a shortage since it decreases quantity supplied and increases quantity demanded. Rent control is a type of binding price ceiling. A minimum wage is a type of binding price floor which results in labor supply surplus since the quantity of labor supplied will increase but the quantity of labor demanded will decrease.
