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
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.

You might be interested in
Uchimura Corporation has two divisions: the AFE Division and the GBI Division. The corporation's net operating income is $12,300
Tom [10]

Answer:

$120,500

Explanation:

Uchimura Corporation

Total Company

Divisional segment margin $132,800

($84,100 + $48,700)

Less common fixed costs not traceable to the individual divisions X

Net operating income $ 12,300

Hence:

Common fixed costs not traceable to the individual divisions= $132,800 − $12,300

= $120,500

Therefore the amount of the common fixed expense not traceable to the individual divisions will be $120,500

3 0
3 years ago
What is the importance of salesmanship​
Veronika [31]

Answer:Salesman helps the consumers in making the right decision and proper selection of the products which they want to buy.

Explanation:

7 0
3 years ago
Read 2 more answers
Yeager Corporation has used regression analysis to perform price elasticity analysis. In doing so management regressed the quant
Olegator [25]

Answer:

b). 72.458 %

a). 24, 213

Explanation:

1). The second option i.e. 72.458% correctly measures the variance percentage brought in the dependent variable(regressed the quantity demanded) by manipulating the independent variable(price elasticity). The first option is wrong as it shows R multiple which is rather the coefficient. The third and the last options are incorrect as they display the intercept employed to determine the quantity and the key error of calculating the standard deviation.

2). The predicted quantity demanded would be 24,213 if the price is fixed at $7.00.

It can be calculated using the formula;

Quantity demanded = Intercept + (Adjusted R squared * Price coefficient)

∵ Quantity Demanded = 56,400.50 + (7 X -4,598.2)

= 24,213

7 0
3 years ago
Your friend has $80 when he goes to the fair. He spends $4 to enter the fair and $12 on food. Rides at the fair cost $1.25 per r
padilas [110]

Answer:

f(x) = -1.25x + 64 I hope this helps :)

Explanation:

total amount of money: $80

He spent $16 for the entrance of the fair and food.

80-(4+12) = 64

After that you subtract $1.25 per ride = -1.25x

Then it gives the function:

f(x) = -1.25x + 64

6 0
3 years ago
In a certain economy, the components of planned spending are given by:
viktelen [127]

Answer:

B) 790-700r

Explanation:

Aggregate Expenditure is the expenditure by all the sectors of economy. By Households = Consumption (C), By Firms = Investment (I), By government = Govt spending (G) & tax leakages (T), By Rest world = Next Exports (NX).

Autonomous Expenditure is the level of expenditure in economy, which doesn't depend on level of Income = Y.

AE = C + I + G + NX

[500 + 0.8 (Y-150) - 300r] + [200 - 400r] + 200 + 10

500 + 0.8Y - 120 - 300r + 200 - 400r + 210

500 - 120 + 200 + 210 - 300r - 400r + 0.8y  

790 - 700r + 0.8y

As, it can be seen that the part of AE = '790 - 700r', excluding '0.8y' : is not dependent on Income Y. So, it is Autonomous Expenditure

4 0
3 years ago
Other questions:
  • The first item appearing on the statement of retained earnings is what?
    5·1 answer
  • Amy and Brian agreed to pay $385,000 for the company. Ernesto has a tax basis in the BLI stock was $100,000. Included in the sal
    11·1 answer
  • Identify four factors that affect whether an industry does or does not present a company with a good business opportunity?
    12·1 answer
  • Steve Burton recently sold the bookstore he inherited from his mother because his income had fallen three years in a row. The ne
    11·2 answers
  • a. You wish to have $1,500,000 by the age of 60 (30 years from now). If you can earn 8% interest on your investments, how much d
    11·1 answer
  • It is receiving $3,000/month from a disability income policy in which T's employer had paid the premiums. How are the $3,000 ben
    13·2 answers
  • An investment of $9,875 earns 4.8% interest compounded monthly over 12 years. approximately how much interest is earned on the i
    6·2 answers
  • Dave Ramsey's investing principles.
    13·1 answer
  • West Co. recorded the following inventory information during the month of February:
    13·1 answer
  • The Nash equilibrium in an oligopolistic market is generally ________ for society than the outcome under collusion because the p
    15·1 answer
Add answer
Login
Not registered? Fast signup
Signup
Login Signup
Ask question!