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Alexus [3.1K]
3 years ago
15

When all firms and potential firms in a market have the same cost curves, the long-run equilibrium of a competitive market will

free entry and exit will be characterized by firms
A. Earning small but positive economic profits.
B. Facing the prospect of future losses.
C. Operating at the efficient scale.
D. That work together to raise market prices.
Business
1 answer:
Sever21 [200]3 years ago
3 0

Answer:

The correct answer would be C) operating at efficient scale.

Explanation:

When the firms have same cost curve in the market , where there is free entry and exit, then the firms in the market must be earning zero economic profit which is when price of good is equal to total average cost of production .

For example if firms in market are profitable, then new firms would want to enter the market and when they do there will be increase in quantity of goods , so the prices and profit would go down . And if the situation was opposite , when firms are not profitable in market , then many firms will exit the market , which will lead to decrease in quantity of goods and increase in prices and profits.

So in the long run equilibrium , all firms would be operating at the efficient scale.

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According to the cost of poor quality, this cost belongs to Internal failure cost which is associated with product failures.

What is Internal failure costs?

Internal failure costs are quality expenses related to product defects found before a product leaves the facility. The firm's internal inspection procedures help identify these shortcomings. Failure analysis activities, product rework expenses, product scrapped, and throughput lost are a few examples of internal failure costs. Internal failure costs result from defects found prior to delivery. These cover all expenses incurred as a result of failing to satisfy both internal and external consumers.

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4 0
1 year ago
On a production possibilities curve, where would a society dealing with unemployment be producing?
dezoksy [38]
Unemployment willl cause the production possibilities to shift inwards, so I the answer would be option A.
During massive unemployment period, production possibilities will heavily decrease due to the lower amount of capital and the lower amount of consumers for that potential product (which happen because the consumers lose a lot of its purchasing power). This situation will cause the curve to move inwards.
3 0
3 years ago
Read 2 more answers
Tom's lawn service specializes in mowing lawns and trimming bushes Tom has 4 hours to devote to lawn services. In 1 hour, he can
Alex Ar [27]

Answer:

attached answer

Explanation:

To draw the FPP we have to calculate either the formula or calcualte two points in the curve to draw the line.

Mowed Land                    Trimmed bushed

0(0 hours x 3 per hour)   20 (4 hours x 5 per hour)

3(1 hours x 3 per hour)      15   (3 hours x 5 per hour)

6(2 hours x 3 per hour)     10   (2 hours x 5 per hour)

9(3 hours x 3 per hour)     5   (1 hours x 5 per hour)

12(4 hours x 3 per hour)    0   (0 hours x 5 per hour)

8 0
3 years ago
The Guardian Express, a community newspaper, has identified a potential new customer segment for its product. What next step sho
mrs_skeptik [129]

Answer:

Option "A" is the correct answer to the following statement.

<u>Conduct Market Research .</u>

Explanation:

The aim of doing consumer research is to arm yourself with the knowledge you need to make intelligent strategic decisions regarding companies, creativity, development and  commodity, size, position , and promotion. Brand-Improve the good or service depending on what the clients want rather than need.

  • To serve the needs of current customers and how they have selected our company over rivals, we use analysis.
  • Take business choices about your product well educated, and establish effective methods.
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3 years ago
Several coworkers of yours at the local swimming pool have been taking snacks from the snack bar without paying. This is an exam
GrogVix [38]

This is an example of property deviance. Thus the correct option is (B).

<h3>What is production deviance?</h3>

Production deviance is conduct that formally transgresses the established organizational standards on the minimal standard of quantity and quality of work that must be completed in order to perform one's duties.

The coworkers are wasting the resources of the company and as well as polluting the swimming pool by eating snacks. This is an appropriate example of property deviance.

Thus the correct option is (B).

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8 0
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