1answer.
Ask question
Login Signup
Ask question
All categories
  • English
  • Mathematics
  • Social Studies
  • Business
  • History
  • Health
  • Geography
  • Biology
  • Physics
  • Chemistry
  • Computers and Technology
  • Arts
  • World Languages
  • Spanish
  • French
  • German
  • Advanced Placement (AP)
  • SAT
  • Medicine
  • Law
  • Engineering
ch4aika [34]
3 years ago
7

Suppose a purely competitive, increasing-cost industry is in long-run equilibrium. Now assume that a decrease in consumer demand

occurs. After all resulting adjustments have been completed, the new equilibrium price:__________.
a) and industry output will be less than the initial price and output.
b) will be greater than the initial price, but the new industry output will be less than the original output.
c) will be less than the initial price, but the new industry output will be greater than the original output.
d) and industry output will be greater than the initial price and output.
Business
1 answer:
mrs_skeptik [129]3 years ago
3 0

Answer: and industry output will be less than the initial price and output

Explanation:

From the question, we are informed that a purely competitive, increasing-cost industry is in long-run equilibrium and it was assumed that there is a reduction in consumer demand.

After all resulting adjustments have been completed, the new equilibrium price and industry output will be less than the initial price and output.

Due to the reduction in demand, the new equilibrium price will be less as the firm will want to increase the demand likewise there'll be a reduction in the output from the former output.

You might be interested in
Assume you are about to graduate. How would you apply marketing principles to your job search? In what ways would you be able to
user100 [1]

Answer:

Are try my best if I can able are do when are graduate are happy

5 0
3 years ago
If GDP for a certain economy is $1,200 billion at the end of year 1 and $1,300 billion at the end of year 2, the economy's growt
gavmur [86]

Answer:

a. 8.33 percent

Explanation:

The computation of the economy's growth rate between the two years is presented below:

= (GDP at the end of year 2 - GDP at the end of year 1) ÷ (GDP at the end of year 1) × 100

= ($1,300 billion - $1,200 billion) ÷ ($1,200 billion)  × 100

= ($100 billion) ÷ ($1,200 billion)   × 100

= 8.33%

The economic growth rate is always expressed in percentage form

5 0
3 years ago
the spot price of the euro is currently $1.30. The 1-year futures price is $1.35. Is the interest rate higher in the United Stat
yarga [219]

Answer: no. Interest rate in euro zone is lower than interest rate in the united state

Explanation:

when interest rate rises, foreign investors will be attracted which will increase the demand for domestic currency. an increase is demand for domestic currency will increase the exchange rate level which is an appreciation of the home currency.

spot rate is $1.30 and future price is $1.35, the exchange rate increase which tells us that Home currency depreciated. A decrease in Interest rate increases Exchange rate level. Since exchange rate level is expected to increase we can assume that the interest rate of Euro zone is less than the interest rate of united states

8 0
4 years ago
Read 2 more answers
In a competitive market the price is $8. A typical firm in the market has ATC = $6, AVC = $5, and MC = $8. How much economic pro
Luba_88 [7]

Answer:

$3 per unit

Explanation:

In short run a monopolist and competitive firm try to maximize their profit and minimize costs until the the marginal revenue equals to the marginal cost.

In this question the average variable cost is lower than the marginal cost the difference between both is the profit for the short run.

Economic profit = Cost saving

Economic profit = Marginal Cost - Average variable cost

Economic profit = $8 - $5

Economic profit = $3

5 0
4 years ago
Draco Company charges a selling price of $25 per unit for its single product, incurs variable costs of $17 per unit, and total f
larisa86 [58]

Answer:

c. 23,500

Explanation:

The formula for determining target sales volume is shown below:

target sales volume=fixed costs+ target net income before tax/contribution margin per unit

fixed costs=$140,000

target net income before tax=$36,000/(1-25%)=$48000

contribution margin per unit=selling price-variable cost=$25-$17=$8

target sales volume=($140,000+$48000 )/$8

target sales volume=$188,000/$8

target sales volume=23500

7 0
3 years ago
Other questions:
  • When someone chooses to purchase one item over another because it is cheaper, this is known as the
    10·2 answers
  • What would a competitive retailer have to do to get your patronage?
    8·1 answer
  • Carter Industries has two divisions: the West Division and the East Division. Information relating to the divisions for the year
    8·1 answer
  • Consider Derek's budget information: materials to be used, $64,750; direct labor, $198,400; factory overhead, $394,800; work in
    11·1 answer
  • Commercial paper is issued with maturities that do not exceed 270 days because: A. Companies do not want to pay high interest ra
    13·2 answers
  • A tax imposed on the sellers of a good will lower the a. price paid by buyers and raise the equilibrium quantity. b. effective p
    7·1 answer
  • The winner of a state lottery will receive​ $5,000 per week for the rest of her life. If the​ winner's interest rate is​ 6.5% pe
    12·1 answer
  • Lupo Corporation uses a job-order costing system with a single plantwide predetermined overhead rate based on machine-hours. The
    6·1 answer
  • A long-term liability should be reported as a current liability in a classified balance sheet if the long-term debt: Is callable
    12·1 answer
  • Why is a bank willing to protect your money for free or for a low cost?
    10·1 answer
Add answer
Login
Not registered? Fast signup
Signup
Login Signup
Ask question!