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Nonamiya [84]
3 years ago
14

2. Skip and Peggy are brother and sister and they fight about everything. Skip says that perfectly competitive firms maximize pr

ofit where marginal revenue equals marginal cost. Peggy says perfectly competitive firms maximize profit where price equals marginal cost. Settle this sibling rivalry once and for all.
Business
1 answer:
finlep [7]3 years ago
5 0

Answer: They are both right.

Explanation:

Firms in every market will always maximise profit where their Marginal Revenue equals Marginal Cost because at this point, resources are being fully utilized. This is therefore no different in a Perfectly competitive market so Skip is correct.

Peggy is also correct however because in a Perfectly Competitive market, the demand curve is perfectly elastic. This creates a situation where the Price, Marginal Revenue and Average Revenue are all the same and represent the demand curve as well.

With the Price being the same as the Marginal Revenue in a Perfectly competitive firm, that means that where the Price equals Marginal Cost is where the Marginal Revenue equals Marginal Cost as well so indeed perfectly competitive firms maximize profit where price equals marginal cost.

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according to liquidity preference theory, a decrease in money demand for some reason other than a change in the price level caus
inna [77]

According to liquidity preference theory, a drop-off in money demand for some ground other than a change in the price degree causes The interest rate to go down, so the aggregate demand shifts.

<h3>What is aggregate demand?</h3>

The total amount of goods and services produced in an economy is the measurement of the aggregate demand.

The aggregate demand is shown as the total amount of money is exchanged at the particular price level and point in time.

Thus,  The interest rate to go down,

For more details about aggregate demand, click here:

brainly.com/question/13000505

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8 0
2 years ago
Last year Harrington Inc. had sales of $325,000 and a net income of $17,000, and its year-end assets were $230,000. The firm's t
choli [55]

Answer:

13.44%

Explanation:

Debt to total assets = Total Debt / Total Assets

45% = Total debt / $230,000

Total Debt = $230,000 x 45% = $103,500

As we know

Assets = debt + Equity

$230,000 = $103,500 + Equity

Equity = $230,000 - $103,500 = $126,500

Return on Equity is the measure of financial performance which can be calculated by dividing net income for the year by total shareholder's equity.

Return on equity = Net income for the year / Shareholders equity

ROE = $17,000 / $126,500 = 0.1344 = 13.44%

6 0
3 years ago
Kristi sells purses. her cost is $35 per purse. on a certain day, she sells 12 purses, and her producer surplus for that day amo
Sonja [21]
<span>For a producer surplus of $180 coming from sales of 12 units, this would be the result from (180 / 12), or $15 per purse. Taking the cost she has to pay for each unit, $35, and adding the $15 surplus to each, this leads to a sale price of (35 + 15), or $50 per purse.</span>
8 0
3 years ago
Which of the following are factors that can cause a shift in supply?
Setler [38]
A major increase in production due to some market factor as well as the establishment of new companies could potentially lead to a shift in the supply curve for a good. The other answers would not create a shift in the supply curve. 
3 0
3 years ago
Read 2 more answers
A job analysis approach that utilizes an inventory of various types of work activities that can constitute any job is _________
Alex17521 [72]

Answer:

functional job analysis.

Explanation:

Functional job analysis can be regarded as the analysis used in the knowing information as far as a job is concerned , this could based on employee's behavior which could be used to give the decription of the job.It should be noted that job analysis approach that utilizes an inventory of various types of work activities that can constitute any job is functional job analysis.

5 0
3 years ago
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