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AURORKA [14]
3 years ago
14

Suppose a competitive market is comprised of first that face identical cost curves. The firms experience an increase in demand t

hat results in positive profits for the firms. Which of the following events are then most likely to occur?
i. New firms will enter the market
ii. In the short run, price will rise; in the long run, price will rise further.
iii. In the long run, all firms will be producing at their efficient scale
Business
1 answer:
umka2103 [35]3 years ago
6 0

Answer:

i. New firms will enter the market

iii. In the long run, all firms will be producing at their efficient scale

Explanation:

In the competitive market barriers to entry will be low as there is no monopoly. The firms in the market are experiencing increased profitability as a result of increased demand so the market will be attractive for new firms. This will result in new firms entering into the market. In the short run.

In the long run as more firms enter the market, the firm's will need to produce at efficient scales because of high competition, with the aim of minimising cost.

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IceJOKER [234]

Answer:

a. Asarta Inc. could pay the fishermen $8,500 and keep polluting  

Explanation:

The fishermen sell the fish for $8,000 a year at local market.

Due to pollution emitted by company into stream, their catch is dwindling and also their income.

The company benefits from usage of stream to the tune of $4,000 a year.  In such scenario, if company compensates the fishermen for any amount between $8,000 and $40,000 then, in that case, optimal solution to the problem can be achieved in absence of any other transaction cost as per the Coase Theorem.

Therefore, The Asarta Inc. could pay the fishermen $8,500 and keep polluting.

4 0
3 years ago
You want to invest $37,000 today to accumulate $41,650 to buy a car. If you can invest at an interest rate of 3% compounded annu
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Answer:

4 years

Explanation:

It takes 4 years to accumulate the required amount.

5 0
3 years ago
MC Qu. 128 Leeks Company's product has... Leeks Company's product has a contribution margin per unit of $13.57 and a contributio
Ray Of Light [21]

Answer:

The price of the product is $59

Explanation:

Contribution margin is the net of the selling price and variable cost per unit. Contribution margin ratio is the ratio of contribution per unit to selling price per unit. As given below

Contribution margin ratio = Contribution margin per unit / Selling price per unit

23% = $13.57 / Selling price per unit

Selling price per unit = $13.57 / 23% = $59

3 0
3 years ago
​Sustainable businesses tend to be run by CEOs who are:
Marianna [84]
The answer is Target-driven<span>
</span>
8 0
3 years ago
Mr. Brown is in the 10 percent federal income tax bracket and wants to invest $10,000 in interest-earning assets. Mr. Black is i
snow_lady [41]

Based on the information given, the corporate bond will be recommended for Mr. Brown while the municipal bond will be recommended for Mr Black.

<u>Mr Brown:</u>

The after-yield tax on corporate bonds will be:

= Before tax yield × (1 - tax rate)

= 4% × (1 - 0.10)

= 3.60%

After tax yield on municipal bond will be:

= 3.5% × 1 = 3.5%

The corporate bond is recommended.

For <u>Mr. Black</u>

The after-yield tax on corporate bonds will be:

= 4% × (1 - 0.35)

= 2.60%

The after-yield tax on municipal bonds will be:

= 3.5% × 1

= 3.5%

Therefore, the municipal bond is recommended.

Red related link on:

brainly.com/question/25379770

5 0
2 years ago
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