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3 years ago

When firms exit a market, the _, causing individual firms’ profits to _.

Business

2 answers:

fgiga [73]3 years ago

7 0

Answer:

Long run supply curve shifts to the left; decrease

Explanation:

In the short run, if firms are making economic loss, in the long run, they exit the industry. Firms cannot exit the industry in the short run because in the short run most factors of production are fixed.

When firms exit the industry, the quantity supplied falls and the supply curve shifts to the left. Because of the fall in supply, prices rise, revenue and profit rise all things being equal.

I hope my answer helps you

Tpy6a [65]3 years ago

4 0

Answer:

<em>When firms exit a market, the short-run market supply curve shifts left, causing individual firms’ profits to increase.</em>

Explanation:

The process of <em>free entry and exit of firms</em> is in a sequence as explained under-

If there is higher demand in the market of the product as compared to its supply, then each firm in the market will receive higher price for its product.
This will increase the prices of the product, enabling higher profits for each firm. This will make the industry attractive, enabling the introduction of newer firms in the market.
When the new firms enter the industry, the prices of the product in the market will drop due to higher competition, now present currently. This will lead to lowering of profits for the firms in the industry.
This will make the industry non-attractive and thereby the less competitive and less effective firms will exit the market in the short run.
This exit of firms from the industry, will lead to higher prices again due to less supply of product in the market as compared to its demand. Hence, the profits of the firms present in the industry will increase.

Thus, it can be concluded that <em>when firms exit a market, the short-run market supply curve shifts left, causing individual firms’ profits to increase.</em>

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Answer:

Answer 1.

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The way that there had been no interest in R&D for recent years which more likely than not brought about noteworthy cost putting something aside for the organization.
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Answer 2.

Yes, even if it is a fraudulent filing for bankruptcy, BBB organization despite everything can select to petition for financial protection or BBB can close the business through and through and escape with the reserve funds and continues from the offer of the stock. Indeed, even leasers and providers reserve the option to petition for automatic insolvency against the BBB in the event that BBB doesn't seek financial protection.

It thoroughly relies upon the BBB Company, in the event that it selects to declare financial insolvency under section 7, or 11 of the liquidation code. Be that as it may, it is just under section 11 liquidation procedures of the chapter 11 court it very well may be set up that BBB's aim and untrustworthy strategic policies establishes to insolvency misrepresentation.

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3 years ago

Howard Bowen is a large-scale cotton farmer. The land and machinery he owns has a current market value of $11 million. Bowen owe

givi [52]

Answer:

A. $1,510,000

B. -$10,000

Explanation:

a. Calculation to determine Bowen’s Accounting profits

Using this formula

Accounting profits = Total revenue - Explicit cost

Let plug in the formula

Accounting profit = $10 million - $8 million - $40,000 - $400,000 - $50,000

Accounting profit= $1,510,000

Therefore Bowen’s Accounting profits is $1,510,000

b. Calculation to determine Bowen’s Economic profit

Using this formula

Economic profits = Accounting profit - Implicit cost

Let plug in the formula

Economic profits = $1,510,000 - [($11,000,000*0.1) + $30,000 + ($60,000 - $40,000)]

Economic profits =$1,510,000 - [$1,100,000+ $30,000 + $60,000 - $40,000)]

Economic profits =$1,510,000-$1,150,000

Economic profits =-$10,000

Therefore Bowen’s Economic profit is -$10,000

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Semiperipheral countries. they have traditional values and institutions.

<h3>What is Semi-periphery countries?</h3>

According to world-systems theory, the industrialising, primarily capitalist countries that are situated halfway between the periphery and the core countries are the semi-periphery countries, also known as merely the semi-periphery.
Semi-periphery countries are frequently situated physically between core and peripheral regions as well as between two or more competing core regions.
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<h3>What do you mean by semi-peripheral regions?</h3>

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When firms exit a market, the _________, causing individual firms’ profits to _________.

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