Answer:
Increase quantity to where AC = MC = D=AR=MR
Explanation:
A perfectly competitive market is where there are many firms in the industry producing homogeneous products. There is ease of entry and exit into and out of the market. They are price takers and earn normal profits in the long-run. In order to maximize profits, a firm in a perfectly competitive industry should produce an the quantity where its average cost is equal to marginal cost when AR = MR = D. In other words, when the AC and MC curves intersect with AR = MR = D curve.
<em><u>Please refer diagram</u></em>
The firm is currently producing at a point where AC > MC at quantity 1000. In order to reach AC = MC, the firm has to increase its quantity to Qe. As it increases quantity, although marginal cost increases, average cost falls because now fixed costs are spread over a larger quantity of output.
At Qe, the three curves intersect and is the point where this firm can maximize its revenue (Price = Pe). At a price higher than this, it would lose customers since there are many others producing the same product and customers can easily shift to another.
Answer:
Unilateral contract
Explanation:
A unilateral contract is one which is agreed to based on the performance of one party.
Simply put, a unilateral contract in one in which there is agreement based on performance.
From the above question, the carpenters performance determines the contract. If he fixes the job within Saturday, he gets $1,000. If he doesn't finish within saturday, the carpenter doesn't get $1,000. The 'saturday' is the conditon for the payment of $1,000.
Answer:
B. forcing producers to factor into their production costs , the cost of the externalities created in the production of their output
Explanation:
" internalizing an external cost " -
It is the process of shifting the cost or the burden from negative externality like the pollution , to inside .
And this process is achieved via paying taxes , the government subsidies , tolls etc .
Hence , the correct explanation for " internalizing an external cost " is ( b ) .
Answer:
Managers are most likely to use detailed rules, SOPs( standard operating procedures), and restrictive norms to govern employees activities.
<span> reasons people don’t manage their money well for the future is that most of the peoples income is less than their expenditurs.an other reason is that some people have no idea about money management</span>