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Natalija [7]
3 years ago
6

A firm in a perfectly competitive industry in​ long-run equilibrium will earn normal returns and zero economic profit.

Business
1 answer:
mina [271]3 years ago
6 0

Answer:

This statement is true.

Explanation:

In a perfectly competitive market, there are a large number of firms in the market. There is no barriers to entry to exit in the market. The firms are producing homogenous products.

The firms in this market will earn positive profits in the short run as in short run, the firms can't enter the market.

In the long run, though the firms will be attracted to the positive profits earned by the existing firms to enter the market.

This will cause the supply in the market to increase, this increase in the supply will shift the supply curve to the left. This leftward shift in the supply curve will reduce the price of the product.

The market share and profits of the individual firms will decline. This will continue till the profits are reduced to zero.

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Hich pricing strategy involves setting a high price for an exclusive, high-end product?
Sidana [21]
Yes, this encourages the buyer to pay more for an item especially if it is by a well known branded. This gives them to opportunity to brag and boast with their purchase. Also when the product is well known consumers are going to try their absolute best to buy it, this is going to make the product scare, hence increasing its price.
3 0
2 years ago
If the number of employed workers equals 200 million and the number of unemployed workers equals 20 million, the unemployment ra
fenix001 [56]

If the number of employed workers equals 200 million and the number of unemployed workers equals 20 million, the unemployment rate equals 9%.

<h3>What is the unemployment rate?</h3>

The unemployment rate is the percentage of the labour force that is unemployed.

The unemployment rate = (number of unemployed people / total labour force) x 100

Total labour force = 200 million + 20 million = 220 million

(20 / 220) x 100 = 9%

To learn more about unemployment, please check: brainly.com/question/10940465

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5 0
2 years ago
What must be the price of a $10000 bond with a 6.8% coupon rate, semiannual coupons, and eight years to maturity if it has a yie
Neko [114]

Answer:

Coupon (R) = 6.8% x 10,000 = $680

Face value (FV) = $10,000

Number of times coupon is paid in a year (m) = 2

No of years to maturity = 8 years

Yield to maturity (Kd) = 8% = 0.08

Po = R/2(1- (1 + r/m)-nm) +  FV/ (1+r/m)n m

                      r/m

Po = 680/2(1-(1+0.08/2)-8x2) + 10,000/(1 + 0.08/2 )8x2

                          0.08/2                              

Po = 340(1 - (1 + 0.04)-16)    + 10,000/(1 + 0.04)16

                      0.04                            

Po = 340(1-0.5339) + 10,000/1.8730

                 0.04

Po = 3,961.85 + 5,339.03

Po = $9,300.88

Explanation:

The current market price of a bond is a function of the present value of semi-annual coupon and present value of the face value. The present value of semi-annual coupon is obtained by multiplying the coupon by the present value of annuity factor at 8% for 8 years. The present value of face value is obtained by discounting the face value at the discount factor for 8 years. The addition of the two gives the present value of the bond. All these explanations have been captured by the formula.

3 0
2 years ago
In Marigold Company, land decreased $156000 because of a cash sale for $156000, the equipment account increased $58000 as a resu
Andrews [41]

Answer:

$ 98,000.00  

Explanation:

The net cash provided by investing activities is the  difference between cash provided by disposal of land which is $156,000 minus the cash paid to acquire equipment which was $58,000.

Net cash provided by investing activities=$156,000-$58,000=$ 98,000.00  

The cash received from bonds issuance of $113,000 is a cash inflow under financing activities not finance-activity related,hence it is not included in the computation above.

8 0
3 years ago
First movers are? a. firms that take an initial competitive action. b. firms that are first to exit a declining indus
hjlf

First movers are firms that take an initial competitive action.

A service or product that enters the market first and captures a competitive advantage is known as a first mover. Being the first usually allows a business to build a strong brand awareness and client loyalty before rivals enter the market. Other benefits include having more time to perfect its offering and determining the new item's selling price.

Industry's first movers are virtually always followed by rivals looking to capture market share and capitalize on their success. The market share held by the first mover is frequently maintained because it has built a strong enough client base and a large enough market share.

Learn more about first mover here

brainly.com/question/20714310

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8 0
1 year ago
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