Based on the fact that the purely competitive firm is producing at point q, in the long run we should expect firms to leave the industry and market supply to fall so that product price rises.
<h3>What will happen in the long run?</h3><h3 />
At point Q, the firm is making losses as total costs are more then price. Firms will therefore leave the market to avoid making losses.
This decrease in production will lead to reduced supply which will push the prices back up to a $0 profit level.
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Answer:
Private business freedom : Capitalist or Market Economy. Henry is more likely in Socialist Economy.
Explanation:
Economy type in which private sector has full freedom, un-intervened by government or state control is Capitalist or Market Economy. Profit maximisation motive & high consumer choice, sovereignity such economy's main features.
Henry's country which gives incentives to reallocate production choice 'what to produce' (from consumer goods to military goods). He has more efficient idea for work implementation, but lacks incentive (probably due to lack of creative & innovative ideas reward). These features characterise a Socialist Economy, in which government or state has supreme power over central economic decisions. Social welfare is considered priority, government monopoly curbs innovation & creativity, there is less consumer choice, sovereignity.
Answer:
d. length of the time period.
Explanation:
The price elasticity of the supply measures the percentage change in the quantity supplied with the percentage change in price
In arithmetically,
The price elasticity of the supply = (percentage change in the quantity supplied ÷ percentage change in price)
It indicates a direct relationship between the quantity supplied and the price.
Moreover, the key determinant of the price elasticity of supply is time period
Answer: Option A
Explanation: The comprehensive resource management is the characteristic of NIMS management that includes maintaining accurate and up to date inventories of various assets. CRM standardizes the mechanism for various functions like order and acquire etc. in relation to inventories of personnel, equipment, teams and supplies.
Answer:
P1=$8.43
Explanation:
The value of the stock is equal to the present value of all cash-flows expected from holding the stock. At the end of year 1, the value of the stock is found by calculating the present value of the remaining dividends i.e D2, D3, D4, D5 etc till infinity.
Therefore price equals
given the values of Dividends calculated above and ke= 15% :
