The assumption in perfect competition that there is an easy entry and exit from the market implies that firms will make a zero economic profit in the long run.
<h3>Why do firms make a zero economic profit?</h3>
In a pure competition, companies are allowed to freely enter and leave.
They take advantage of this to enter a market when prices are high and economic profit is being made.
As more firms enter, the economic profit keeps decreasing as prices decrease until this profit gets to zero and then turns to economic losses.
At this point, some firms will leave the market to stop making losses. When they do, the supply will decrease which leads to prices rising once more.
The cycle will then repeat itself and keep the companies at a zero economic profit in the long run.
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Recovery is saving, that is, releasing immobile,
inoperative, or abandoned equipment from its current location and returning it
to operation or to a repairs site for maintenance. These actions typically
involve towing, lifting, or winching. The answer here is self-recovery. Actions
necessitate using only the equipment’s assets. Self-recovery starts at the place
where the equipment becomes caught up or disabled. The operator or crew uses
the accessible recovery objects to carry out self-recovery.
Answer:
The demand for iPads increased.
Explanation:
If they raise the price of the iPads, this must mean more people want to buy them, so the demand for them is high.
Answer:
Explanation:
Required return = (dividend / price per share) + constant growth rate.
Dividend yield on the stock = (dividend / price per share) = 5.5%
Therefore, Required return = 5.5% + 4.2% = 9.7%
