All categories

3 years ago

Which of the following is NOT a characteristic of long-run equilibrium for a perfectly competitive firm? Select one:

1 answer:

3 0

Answer: "b. Price is greater than long-run average cost." is NOT characteristic of long-run equilibrium for a perfectly competitive firm.

Explanation: In the long term the company will produce the output level at which long-run average cost is at its minimum.

Where the price is equal to the long-run marginal cost and the long-run average cost.

You might be interested in

The Berne Conventions provides for international protection of copyrights. True False

kolezko [41]

False thank me later guys :)

8 0

2 years ago

On February 1, 2021, Arrow Construction Company entered into a three-year construction contract to build a bridge for a price of

faltersainse [42]

Answer:

2021

revenue 2,666,667

we have cost for 2,000,000

income for 666,667

2022

revenue 3.278.400‬

cost 2,500,000

income 778.400‬

2023

revenue 2,054,933‬

cost 3,800,000

loss 1,745,067‬

Explanation:

2,000,000/ (2,000,000 + 4,000,000) = 1/3

in 2021 a third of the contract was complete therefore we recognize a third of revenue:

8,000,000 x 1/3 = 2,666,667

we have cost for 2,000,000

income for 666,667

2,500,000 / (2,500,000 + 3,600,000) = 0,4098

we recognize revenues for 40.98 of the total contract value.

8,000,000 x 40.98 = 3.278.400‬

cost 2,500,000

income 778.400‬

2023

we recognize the remaining revenue.

8,000,000 - 2,666,667 - 3,278,400 = 2.054.933‬ revenue

cost 3,800,000

loss 1,745,067‬

7 0

3 years ago

The Romer and Romer 2010 paper in the American Economic Review found that tax changes that are made to promote long-run growth o

Artemon [7]

Group of answer choices:

A) An uncertain correlation between taxes and output GDP.

B) A strong negative relationship between taxes and output GDP.

C) A strong positive relationship between taxes and output GDP.

D) A weak positive relationship between taxes and output GDP.

Answer:

The correct answer is letter "C": A strong positive relationship between taxes and output GDP.

Explanation:

According to "The Macroeconomic Effects of Tax Changes: Estimates Based on a New Measure of Fiscal Shocks" published by Christina and David Romer in 2010 tax increases are highly contractionary causing relevant-robust effects in the overall economy, positively affecting the Gross Domestic Product (GDP) output level.

4 0

3 years ago

In March 2012, Daniela Motor Financing (DMF), offered some securities for sale to the public. Under the terms of the deal, DMF p

Nadusha1986 [10]

Answer:

A. 2.81%

B. $546.87

C.4.11%

Explanation:

A. Calculation for the rate of return

Rate of return= (1000/500)^(1/25)-1

Rate of return=2^(1/25)-1

Rate of return=1.0281-1

Rate of return= 0.0281*100

Rate of return= 2.81%

Therefore the Rate of return will be 2.81%

B. Calculation for How much would the bond be worth at that time

Bond value= (500*(1+0.009)^10)

Bond value= (500*(1.009%)^10)

Bond value=500*1.09373387

Bond value= $546.87

Note that 2012 to 2022 will give us 10 years.

Therefore Bond value will be $546.87

C. Calculation for what annual rate of return will you earn over the last 15 years

Return in last 15 years= (1000/546.87)^(1/15)-1

Return in last 15 years=1.828588^(1/15)-1

Return in last 15 years=1.0411-1

Return in last 15 years=0.0411*100

Return in last 15 years= 4.11%

Note that 2022 to 2037 will give us 15 years

Therefore the rate of return will be 4.11%

3 0

3 years ago

Suppose there are two states that do not trade: Iowa and Nebraska. Each state produces the same two goods: corn and wheat. For I

salantis [7]

Explanation:

Iowa's opportunity cost of producing 1 bushel of wheat is

= 3 bushels of corn

Nebraska's opportunity cost of producing 1 bushel of wheat is

= $\frac{1}{3}$

= 0.33 bushels of corn

Iowa's opportunity cost of producing 1 bushel of corn is

= $\frac{1}{3}$

= 0.33 bushels of wheat

Nebraska the opportunity cost of producing 1 bushel of corn is

= 3 bushels of wheat

Nebraska has a comparative advantage in producing wheat and Iowa has a comparative advantage in producing corn.

If both countries start to produce the commodity they have a comparative advantage in producing, both will gain from trade.

Iowa can give up producing 20 million bushels of wheat and instead produce additional

= 20 × 3 = 60 million bushels of corn

Similarly, Nebraska can give up producing 20 million bushels of corn and instead produce additional

= 20 × 3 = 60 million bushels of wheat

So now Iowa can produce 180 million bushels of corn no wheat and Nebraska can produce 180 million bushels of wheat and no corn.

If they trade, Nebraska can trade 120 million bushels of wheat for 60 bushels of corn. With this trade, Nebraska will end up with 120 million bushels of corn and 60 million bushels of wheat and Iowa will end up with 60 million bushels of corn and 120 million bushels of wheat.

5 0

3 years ago