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antoniya [11.8K]
3 years ago
6

Assume there is a decrease in the market demand for a good sold by price-taking firms that are initially producing the profit-ma

ximizing level of output. For the individual firm, this would result in:
Business
1 answer:
Mrac [35]3 years ago
6 0

Answer: Fall in revenue

Explanation:

A decrease in demand means a lower level of demand compare to the previous period. A price taking firm means that the firm cannot determine the price in the market. Profit maximising level of output means the output level that gives the highest profit.

A fall in demand without an increase in price at a profit maximising level of output will lead to a fall in revenue and profit all things being equal.

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Pens are normal goods. What will happen to the equilibrium price of pens if the price of pencils rises, consumers experience an
sergey [27]

Answer:

Equilibrium price rises

Equilibrium price rises

Equilibrium price rises

Equilibrium price falls

Equilibrium price rises

Equilibrium price rises

Equilibrium price falls

Explanation:

A normal good is a good whose demand increases when income rises.

If the price of pencils increases, the demand for pens would increase. This would lead to an excess of demand over supply and price would rise as result. Pens and pencils are substitute goods.

If income of consumers rise, the demand for pens would rise because pens are normal goods. The increase in demand would lead to an excess of demand over supply and prices would rise.

If writing in ink becomes more fashionable, the demand for pens would increase. The increase in demand would lead to an excess of demand over supply and prices would rise.

If people expect the price of pens to fall in the near future, consumer would reduce their demand for pens and shift it to the future. The fall in demand would lead to a fall in price.

If population increases, the demand for pens would rise. The increase in demand would lead to an excess of demand over supply and prices would rise.

If fewer firms supply pens, supply would fall. This would cause a leftward shift in the supply curve and prices would rise.

If wages of pen makers fell, firms would increase their demand for Labour and quantity supplied would increase. This increase would cause price to fall.

I hope my answer helps you.

6 0
3 years ago
Jose and Zola want to purchase their first home. Jose makes $23.50 an hour and works 40 hours per week. Zola makes $21.50 an hou
vovangra [49]

Answer:

$1,411.25

Explanation:

The computation of the combined gross monthly income is shown below:

The earnings of Jose = $23.50 × 40 hours = $940

And, the earnings of Zola is

= $21.50 × 40 hours + 5 hours × $21.50

= $860 + $161.25

The total earnings is

= $940 + $860 + $161.25

= $1,961.25

And, the expenses are

= $500 + $50

= $550

So the combined gross monthly income is

= $1,961.25 - $550

= $1,411.25

7 0
3 years ago
Zeke purchased a life insurance policy 4 years ago. he inadvertently stated that he was 3 years younger than his actual age. if
andre [41]
It would be less than the policy face value. If the age of the covered was misstated when the policy was commenced, then the face value of the policy will be in sync to the amount that the funded premiums would have subscribed if the true age was given.
4 0
2 years ago
The+ebit+of+a+firm+is+$300,+the+tax+rate+is+35%,+the+depreciation+is+$20,+capital+expenditures+are+$60+and+the+decrease+in+net+w
-BARSIC- [3]

Answer:

Answer:

$215

Explanation:

Eagles product has an EBIT of $400

Its tax rate is 30%

= 30/100

= 0.3

The depreciation is $16

The capital expenditures are $56

The planned increase in net working capital is $25

Therefore, the free cash flow to the firm can be calculated as follows

Free cash flow= EBIT(1-tax)+depreciation-capital expenditures- change in working capital

= 400(1-0.3)+16-56-25

= 400-120+16-56-25

= $215

Hence the free cash flow to the firm is $215

4 0
2 years ago
When empty, the bladder is much smaller than when it is full. since the bladder must be able to stretch and expand as it fills,
Dmitry_Shevchenko [17]
Transitional epithelium

<span>Transitional epithelium is a tissue made of many layers of epithelial cells that can expand when filled with fluid or contract when there's a lack of fluid. It is thus 'transitional' since it does not have a fixed shape of form. When the bladder is full, the t</span>ransitional epithelium lining it expands to contain urine. Whereas, when the bladder is empty, the transitional epithelium lining contracts and flattens in shape.
8 0
3 years ago
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