Answer:
The income elasticity of demand for Patty's Pizza is 1. Positive income elasticity shows that Pizza is a normal good.
Explanation:
The annual income of the student's is $10,000.
The annual quantity demanded for patty's pizza is 50 units.
When the income increases to $12,000, the quantity demanded will also increase to 60 units.
There is a positive relationship between the quantity demanded of pizza and income level.
This indicates that pizza is a normal good.
The income elasticity of pizza is 1, the solution is given in the figure below:
Answer: It's still in place because it doesn't terminate on the death or incompetence of the principal.
Explanation:
Agreement that exists between people are usually standing so long both parties are still alive, in most cases, the agreement may still stand with the death of one party, depending on what was written or agreed upon by both parties. The agreement between Maxwell and Rufus is still in place because it doesn't terminate on the death or incompetence of the principal.
The agreement would even stand even if one of the party ain't alive anymore.
A perfectly competitive firm and a monopolistic firm in the long-run equilibrium face exactly the same demand and cost curves, then they will also <u>earn zero </u><u>economic profits</u><u>, and attain the lowest possible unit costs (D).</u>
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Economic profit is the total revenue minus the total cost of a product produced by a firm. Cost in this term include the measurement of oppotunity cost.
Perfectly competitive firm is a firm in a market with many buyers and sellers and the price of products represents the equililbrium point between supply and demand. A firm in this market has almost no power to affect the product price.
In the long-run, a perfectly competitive firm will earn 0 (zero) economic profit, while earn accounting profits. This condition happens because entry and exit barriers for firms in perfect competitive market is low. Many firms can easily enter and exit the market.
Monopolistic firm is a firm in a market where many firms are producing similar but differentiated products. The entry barriers for thiis market is relatively low and the decisions of any firm do not dirrectly affecting its competitor within the market.
In the long-run, monopolistic firm will earn zero economic profits because the low entry barriers easily allows new competitors to join the market and reduce an old-player firm's demand. This condition push a firm to make its demand curve to be more elastic. Any change in the demand curve will also affecting a firm's marginal revenue curve as well. This situation then leads a firm to no-longer make an economic profit condition.
However, to ensure their sustainability in their respective markets, both firms will attain the lowes possible unit costs to earn accounting profits.
Learn more about Perfect Competition and Monopolistic Markets here: brainly.com/question/29454493
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Answer:
the answer is C i just to the test
Explanation:
