Answer:
TRUE
Explanation:
For example: consider a video game store where a customer comes in to buy a product then pay for it at the checkout counter. The staff goes to take the similar product from the store room and replaces it on the shelve. When the stock runs low, new products are ordered.
All the processes above involve the collection, storing and processing of the the product and the system that monitors those process is known as Transaction Processing System.
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.
Find out more on perfect competitions at brainly.com/question/1748396
#SPJ1
Answer:
Yes, because they lead people to make poor decisions.
Explanation:
Answer and Explanation:
Please find answer and explanation attached
Answer: (1) 700 pizzas
(2) Its revenue increases by $2600.
Explanation:
Given that,
price elasticity of demand for his pizza = -4
Percentage change in price = 10%
Initial Quantity,
= 500 Pizzas
Elasticity of demand = 
-4 = 
= -4 × 0.1
= 0.4
= 0.4
∴
= 700
Initial price,
= $20
Changed price,
= $18
Revenue at t = 0
= 500 × 20 =$10000
Revenue at t = 1
= 700 × 18 = $12600
Therefore, from the above calculations it was seen that his revenue increases by ($12600 - $10000)= $2600 and its sales increases to 700.