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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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he long-run average total cost of producing 100 units of output is $4, while the long-run average cost of producing 110 units of
Firlakuza [10]

Answer:

Constant Return to Scale

Explanation:

Based on the information given the numbers

suggest that between 100 and 110 units of output, the firm producing this output has CONSTANT RETURN TO SCALE.

Constant Return to Scale occurs in a situation where the proportional increase in all the inputs is as well equal to the proportional increase in output which means the returns to scale are constant , which is why RETURNS TO SCALE help to describe all what happens to long run returns when the scale of production increases.

Therefore Constant returns to scale often occur when the output increase in exactly the same way or the same proportion as the factors of production.

4 0
3 years ago
Russ and Linda are married and file a joint tax return claiming their three children, ages 4, 7, and 18, as dependents. Their ad
hoa [83]

Answer:

$3,700

Explanation:

Given that

Adjusted gross income for the year 2019 = $415,300

Children ages = 4, 7, and 18 as dependents

Based on the given information, Russ and Linda's total child and other dependent credit for the year 2019 is

= (Maximum amount per qualifying child + non-refundable tax credit) - (deductible amount × age)

= ($2,000 × 2 + $500) - ($50 × 16)

= $4,500 - $800

= $3,700

After $400,000 the $50 is decreased for each and every $1,000

5 0
3 years ago
Deciding how to use computers to improve business processes is the most important strategic decision a firm can make.a. Trueb. F
Harman [31]

Answer:

a

Explanation:

computers make work easy and faster

4 0
1 year ago
Identify which group of accounts may require adjustments at the end of the accounting period.
FrozenT [24]

Answer:unearned revenue, Supplies, prepaid rent

Explanation:

7 0
2 years ago
​Jason's gross pay for the week is $ 1,000. His yearly pay is under the limit for OASDI. Assume that the rate for state and fede
ozzi

Answer:

Total payroll taxes                      213

Explanation:

the employeer will have to record the taxes on the wages plus the taxes on his behalf

1,000 x 6.2 = 62

1,000 x 1.45 = 14.5

Total 76.5 for the employee

Then the employer must pay the same amount of taxes.

employer taxes 76.5

Total for OASDI and Medicare: 153

Then FUTA&SUTA 6% of 1000  60

Total payroll taxes                      213

6 0
3 years ago
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