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Tpy6a [65]
2 years ago
10

Suppose that a perfectly competitive industry is in long-run equilibrium. Every firm is producing at minimum average total cost,

and all firms are identical. Demand in this industry decreases.Which of the following will not occur in the short run?A. Firms will produce less.B. Firms will exit the industry.C. The price will fall.D. The industry will produce less.E. Profits will be negative.
Business
1 answer:
elixir [45]2 years ago
7 0

Answer:

B. firms will exit the industry

Explanation:

When the firms is producing at the minimum average total cost, the amount of profit margin that they get tend to be high. This means that they can fulfill their target profit even by producing less amount of product.

Even when the demand in the market is decreased, Such firms will most likely accumulated enough profit to survive for a long period of time before they go bankrupt. This is why the firms is very unlikely to exist the industry in a short run.

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Answer:

Option Total assets, total liabilities, and equity are unchanged.

Explanation:

The reason is that the double entry to record this transaction is as under:

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Hence there increase in one asset and decrease in other asset will have zero net impact on assets. As equity and liabilities are not effected by the transaction, hence they will also remain unchanged.

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3 years ago
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3 years ago
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notsponge [240]

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Explanation:

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8 0
2 years ago
Why do many companies find that providing employees a comprehensive benefits package that includes insurance, retirement investm
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Answer: Few employers believe that offering employee benefits is a worthwhile or cost-effective strategy for attracting and retaining the best employees

Explanation:

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When employees are given the required support needed and given work related benefits, this is usually source of motivation to the employees and can help bring out the best in them.

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garik1379 [7]

Answer:

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Explanation:

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