1answer.
Ask question
Login Signup
Ask question
All categories
  • English
  • Mathematics
  • Social Studies
  • Business
  • History
  • Health
  • Geography
  • Biology
  • Physics
  • Chemistry
  • Computers and Technology
  • Arts
  • World Languages
  • Spanish
  • French
  • German
  • Advanced Placement (AP)
  • SAT
  • Medicine
  • Law
  • Engineering
const2013 [10]
3 years ago
11

When all firms earn zero economic profits producing the output level where P=MR=MC and P=AC and there is no incentive to leave o

r join the market, the market is in __________.
Business
2 answers:
SIZIF [17.4K]3 years ago
4 0

Answer:

Long-run equilibrium.

Explanation:

When all firms earn zero economic profits producing the output level where P=MR=MC and P=AC and there is no incentive to leave or join the market, the market is in long-run equilibrium.

In a perfectly competitive market in long-run equilibrium, a long-run equilibrium avails firms the opportunity to adjust all inputs and all fixed costs are maximized. Also, it's characterized by free entry and exit, as such there isn't a fixed number of firms. This simply means that, since the number of firms in a long-run equilibrium can change, a firm must exit the market as a result of losses i.e when the firm is unable to cover its fixed costs in the long-run while new firms are allowed entry into the market when it anticipates potential profits or gains.

However, the firms always strive to maximize profits by increasing their level of output, such that P = MC. Also, the firms wouldn't be willing to leave or enter into the market because they are not making any profit, such that P=AC.

<em>In a nutshell, in the long run equilibrium P=MR=MC and P=AC.</em>

<em>Where, P represents the price. </em>

Naddika [18.5K]3 years ago
4 0

Answer:

The correct answer is: long-run equilibrium.

Explanation:

To begin with, the market that is refered in the question is a perfect competitive one, you can tell by the fact that the price equals the marginal revenue(MR) and that equals the marginal costs(MC) and also the price equals the average cost and that combination only happens in the competitive market and therefore that the relationship established happen when that industry is in the long run equilibrium and there is no incentive to leave or join the market.

You might be interested in
Pete offered Liz a job at his new law firm. In anticipation, Liz quit her job at Mega Firm, bought a new computer and invested i
MissTica

Alcohol hand sanitizer

6 0
3 years ago
A Treasury bill with 119 days to maturity is quoted at 97.630. What are the bank discount yield, the bond equivalent yield, and
Dovator [93]

Answer:

discount yield=7.17%

bond equivalent yield=7.34%

effective annual yield =7.64%

Explanation:

Discount yield =discount /face value*360/t

where t is the number of days to maturity

discount =face value -issue price

discount=100-97.63

discount=2.37

discount yield =2.37/100*360/119

discount yield=7.17%

bond equivalent yield=(1+periodic yield)^360/t-1

periodic yield =discount/face value=2.37/100=2.37%

bond equivalent yield =(1+2.37%)^(360/119)-1

bond equivalent yield=7.34%

effective annual yield=(1+HPY)^365/t-1

Holding period yield (HPY)=discount/price=2.37/97.63

HPY=2.43%

effective annual yield=(1+2.43%)^(365/119)-1

effective annual yield =7.64%

6 0
4 years ago
The financial institution that generally charged the lowest rates on loans is
astra-53 [7]

Banks and Credit Unions usually charge the lowest rates on loans.

8 0
3 years ago
an online store wants a database of customer information but it does not have the meta pixel installed. which campaign objective
madam [21]

The <u>c</u>ampaign objective which meets this business goal is Lead Generation

<h3>What is Lead Generation?</h3>

This refers to the process through which potential customers are identified and cultivated.

Hence, we can see that from the given scenario of the use of a database of customer information to identify their purchase decisions but has no metadata installed, this is lead generation.

Read more about Lead Generation here:

brainly.com/question/14972440

#SPJ12

3 0
2 years ago
Separation of duties refers to:
Bumek [7]
Making each manager personally responsible for his/her department
5 0
4 years ago
Other questions:
  • Do applications require you to provide the following basic elements: social security number, experience, and favorite memories?
    13·2 answers
  • In one year, the Hotel by the Shore incurred $100,000 in fixed costs. Because the hotel booked 10,000 room nights, its total var
    8·1 answer
  • Saving money is a(n) ____________________, because it involves less consumption in the present, but the ability to consume more
    13·1 answer
  • Angus Bank holds no excess reserves but complies with the reserve requirement. The required reserves ratio is 8​%, and reserves
    15·1 answer
  • Saddle Up, a small tack store in Massachusetts, stresses a culture of excellent customer service. To ensure customer satisfactio
    6·2 answers
  • Bedekar, Inc., has an issue of preferred stock outstanding that pays a $3.40 dividend every year in perpetuity. If this issue cu
    9·1 answer
  • 1. Carla Vista Co. enters sales and sales taxes separately on its cash register. On April 10, the register totals are sales $26,
    7·1 answer
  • A struggling company currently has a total value of $700,000. It owes $500,000 from debt financing (assume these are loans from
    15·1 answer
  • g If the economy experiences economic contraction, the government can combat this with an Group of answer choices increase in go
    14·1 answer
  • Which of the following is the most appropriate topic to address in a college application essay?
    12·1 answer
Add answer
Login
Not registered? Fast signup
Signup
Login Signup
Ask question!