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pshichka [43]
3 years ago
5

Assume there is a decrease in the market demand for a good sold by price-taking firms that are initially producing the profit-ma

ximizing level of output. How will the market adjust over time? Firms will exit the market, causing price to fall until positive profits are eliminated. Firms will exit the market, causing price to rise until losses are eliminated. Firms will enter the market, causing price to rise until losses are eliminated. Firms will enter the market, causing price to fall until positive profits are eliminated.
Business
1 answer:
pishuonlain [190]3 years ago
8 0

Answer: Firms will exit the market, causing price to rise until losses are eliminated

Explanation:

When there is a decrease in demand in a Perfectly Competitive Market, firms will have to start producing at a lower Quantity to manage their Marginal cost. This leads to Economic losses on their part in the short run.

In the long run however, should the situation remain the same, the new price would be less than their Average Cost which would deepen Economic losses. Firms would respond by exiting the market in the long run.

As the firms exit, the supply curve shifts left as supply drops. This drop in supply leads to a price rise. The exits will continue until enough firms leave that the market's remaining firms will stop suffering economic losses.

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Nezzie invests in 300 shares of stock in the fund shown below. Name of Fund NAV Offer Price LKIT Mid-Cap $16. 58 $16. 99 Nezzie
LenKa [72]

The correct amount of net asset value is $33. 66. Net asset value is termed as the value of the asset after the evaluation of the company's profit and evaluating the paid-off debt of the firm.  

Computation of the total net value:

\begin{aligned}\text{The Total Net Value}&=(\text{ Number of shares} \times \text{Offer price}) + \text{profit}\\\text{The Total Net Value}&= 300 \:\rm shares \times \$16.99 + \$5000\\\text{The Total Net Value}&=\$10,097\end{aligned}

The computation of the net asset value is:

\begin{aligned} \text{The Net Asset Value}&=\dfrac{\text{ Total Net Value}}{\text{Total Outstanding Shares}}  \\\text{The Net Asset Value}&= \frac{\$10097}{300\:\rm shares} \\ \text{The Net Asset Value}&= \$33.66\end{aligned}

Therefore, the correct option is D.

To know more about the calculation of the net asset value, refer to the link below:

brainly.com/question/2718055

7 0
2 years ago
The small island nation of kaboom is a simple economy with no​ government, no​ taxes, and no imports or exports. kaboomers​ (cit
Luden [163]

HERE IS/ARE THE FULL QUESTION(S):

The small island nation of Kaboom is a simple economy with no​ government, no​ taxes, and no imports or exports. Kaboomers​ (citizens of​ Kaboom) are creatures of habit. They have a rule that everyone saves exactly 40 percent of income. Assume that planned investment is fixed and remains at 225 million Kaboomian dollars. Further assume that autonomous consumption​ (independent of​ Y) is​ zero, so consumption​ (C) is MPC times Upper YMPC×Y.

The following data are estimates for the island of​ Kaboom:

bullet• Real GNP​ (Y): 422 million Kaboomian dollars

bullet• Planned investment spending ​(I)​:225 million Kaboomian dollars

You are asked by the business editor of the Explosive Times​, the local​ newspaper, to predict the economic events of the next few months.

Based on the data​ given, you predict inventories will DECREASE and the level of real GNP will INCREASE.

Things will stop changing when SAVINGS EQUAL INVESTMENT.

Kaboom's economy will reach equilibrium when its real GNP​ = 563 MILLION Kaboomian dollars

6 0
4 years ago
Greg, a landscaper, is planning on opening his own landscaping company. He currently earns $50,000 per year working for his uncl
schepotkina [342]

Answer: $52,840

Explanation:

The opportunity cost are the benefits he will give up to pursue his current venture of landscaping.

= Salary from working for uncle + Interest on the Savings to be used in business + Difference in market value if he waits till the end of the year

= 50,000 + (7% * 12,000) + (12,000 - 10,000)

= $52,840

7 0
3 years ago
Maintenance, which was about 18 of the total budget less than it spent on administrative personnel. The amount spent on administ
____ [38]

Answer:

the remaining budget for other expenses = 1/8 of the total budget

Explanation:

Since the city's administrative personnel expenses are 1/8 larger than both maintenance expenses and safety expenses, it means that safety expenses are equal to maintenance expenses.

Since maintenance expenses are 1/4 of the total budget, safety expenses are also 1/4 of the total budget.

Administrative personnel expenses are 1/8 higher, so that means that they equal 1/4 + 1/8 of the total expenses.

If we add the three categories = 1/4 + 1/4 + (1/4 + 1/8) = 7/8

So the remaining budget for other expenses = 1 - 7/8 = 1/8 of the total budget

8 0
3 years ago
An increase in the real money supply can result from ________.
slava [35]

Answer:

A change in the real money supply can result either from change in the nominal money supply through Federal Reserve policy ( holding the price level constant) or from a change in the price level( holding the nominal money supply constant).The change in the nominal money supply causes a shift of the aggregate demand curve, whereas a change in the price level causes a movement along the aggregate demand curve.

Explanation:

8 0
3 years ago
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