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3 years ago

In long-run equilibrium, a purely competitive firm will operate where price is ________.

Business

2 answers:

ahrayia [7]3 years ago

4 0

Answer: The correct answer is "D. equal to MR, MC, and minimum ATC.".

Explanation: In long-run equilibrium, a purely competitive firm will operate where price <u>is equal to MR, MC, and minimum ATC.</u>

In perfect competition the companies are accepting price, therefore they will produce as long as the price is equal to the marginal cost and the marginal income thus ensures that the sale of each unit of product does not cost more than the profit obtained from the sale. of this and when the average total cost, that is, the total cost of producing each unit of product, is the least possible.

Elden [556K]3 years ago

3 0

Answer:

Explanation:

In long-run equilibrium a purely competitive firm will operate where price is: A. greater than MR but equal to MC and minimum ATC.

A normal profit (zero economic profits) is what we would expect individual firms in a perfectly competitive market to earn in the long run because there are no barriers to entry.

And in long run equilibrium the P = MC (allocative efficiency, more later) and P = minimum ATC (productive efficiency, more later).

The correct answer to the question is A

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Betty operates a beauty salon as a sole proprietorship. Betty also owns and rents an apartment building. This year Betty had the

nikitadnepr [17]

Answer:

Betty's AGI $33,558

Explanation:

Betty's AGI:

Revenue from salon $88,560

Salaries paid to beauticians ($46,440)

Nail salon supplies ($23,620)

Salon's operating income $18,500

Interest income $14,665

Rental revenue from apartment building $35,180

Depreciation on apartment building ($14,400)

Real estate taxes paid on apartment building ($11,980)

Rental income $8,800

Alimony paid to her husband $7,100

Self-employment tax on salon income $1,307

Betty's AGI $33,558

Real estate taxes paid on Betty's house and charitable contributions are itemized deductions (below the line deductions).

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2 years ago

Kendra has a difficult project due for her chemistry class next week. What time-wasting activity should she make sure she does n

GuDViN [60]

Procrastinating
Procrastination is the avoidance of doing a task which needs to be accomplished. It is the practice of doing more pleasurable things in place of less pleasurable ones, or carrying out less urgent tasks instead of more urgent ones, thus putting off impending tasks to a later time.

3 0

2 years ago

Dozens of companies produce plain white socks. Consumers regard plain white socks as standardized and don't care who manufacture

Dmitry_Shevchenko [17]

The correct answer is A) Yes, meets all assumptions.

Dozens of companies produce plain white socks. Consumers regard plain white socks as standardized and don't care who manufactures their socks: Yes, meets all assumptions.

What we are trying to do here is to define if the affirmation is about a competitive market. And the answer is yes, it meets all assumptions. The socks market is a competitive market because it has a large number of buyers and sellers that is not as big if compared to the size of the total market. The socks matter is offering barely the same product to customers. There is no differentiation at all. And in this case, companies can enter or leave the market whenever they want.

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2 years ago

Suppose that an investor with a 10-year investment horizon is considering purchasing a 20-year 8% coupon bond selling for $900.

leonid [27]

Answer:

8.67%

Explanation:

PMT (Semi-annual coupon) = par value*coupon rate/2 = 1,000*8%/2 = 40

N (No of coupons paid) = 10*2 = 20

Rate (Semi-annual reinvestment rate) = 7%/2 = 3.5%

Future value of reinvested coupons = FV(PMT, N, Rate)

Future value of reinvested coupons = FV(40, 20, 3.5%)

Future value of reinvested coupons = $1,131.19

FV = 1,000

PMT (Semi-annual coupons) = 40

N (No of coupons pending) = 10*2 = 20

Rate (Semi-annual YTM) = 9%/2 = 4.5%

Price of the bond after 10 years = PV(FV, PMT, N, RATE)

Price of the bond after 10 years = PV(1000, 40, 20, 4.5%)

Price of the bond after 10 years = $934.96

Total amount after 10 years = Future value of reinvested coupons + Price of the bond after 10 years

Total amount after 10 years = $1,131.19 + $934.96

Total amount after 10 years = $2,066.15

Amount invested (Price of the bond now) = $900.

Total Annual Return = [(Total amount after 10 years / Amount invested)^(1/holding period)] -1

Total Annual Return = [($2,066.15/$900)^(1/10)] -1

Total Annual Return = [2.295722^0.1] - 1

Total Annual Return = 1.08665561792 - 1

Total Annual Return = 0.08665561792

Total Annual Return = 8.67%

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3 years ago

The purpose of a lease is _____.

REY [17]

The purpose of a lease is a rent. When you "lease" something, that's the business term of renting something ;-)

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3 years ago