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agasfer [191]
3 years ago
5

Suppose that initially the price is $50 in a perfectly competitive market. Firms are making zero economic profits. Then the mark

et demand shrinks permanently, some firms leave the industry, and the industry returns to a long-run equilibrium. What will be the new equilibrium price, assuming cost conditions in the industry remain constant?
a. $50.
b. $45.
c. Lower than $50 but exact value cannot be known without more information.
d. Larger than $45 but exact value cannot be known without more information.
Business
1 answer:
Serhud [2]3 years ago
6 0

Answer:

a. $50.

Explanation:

Since the cost conditions remain the same and the market in question is a perfectly competitive one, when the market returns to a long-run equilibrium, the equilibrium price gravitates towards the previous equilibrium price in which economic profit was zero, which is $50, regardless of some firms leaving the industry or not. Note that this behavior is only observed because this is a perfectly competitive market.

Therefore, the answer is alternative a. $50.

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Answer:

(C) target market

Explanation:

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vladimir1956 [14]

Answer:

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Entitlement philosophy of compensation therefore assumes that the employees who have worked for another year in a company are entitled to pay increases, regardless of their performance differences. This action is often geared towards a higher job performance, and job satisfaction.

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The businessman has to be concerned with who's buying this?what need am I satisfying agree or disagree or undecided
eduard

Answer:

agree 100% hope it helps

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BlackZzzverrR [31]

During the testing stage, a firm should take feedback from various stakeholders on how the solution meets the needs of the problems or concerns they shared with you in interviews.

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To learn more about design thinking: brainly.com/question/12108094

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