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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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What has carolines payment history been like?
evablogger [386]

Answer:

Explanation:

Does Caroline have any closed accounts How long does a closed account stay on a person's credit report?

Regardless of whether it's a loan or credit card, a closed account can still affect your score. According to Equifax, closed accounts with derogatory marks such as late or missed payments, collections and charge-offs will stay on your credit report for around seven years.

3 0
3 years ago
The primary benefit of a MINIMAX objective function is
sladkih [1.3K]

Answer:

The correct answer is letter "C": it yields a larger variety of solutions than generally available using an LP method.

Explanation:

In Goal Programming (GP), the MINIMAX objective aims to minimize the maximum deviation from any type of objective. This approach carries a larger number of solutions compared to the Linear Programming (LP) method which mainly focuses on assigning more weight to each goal in the objective function.

4 0
3 years ago
Which of the following best describes measures of immediate liquidity? The current ratio and the quick ratio will always have di
mr Goodwill [35]

Answer:

The current ratio reflects existing cash as well as amounts to be converted to cash in the normal operating cycle.

Explanation:

 As we know that

There are two liquidity ratios which is current ratio and quick ratio

The formula to compute each one is shown below:

Current ratio = Current assets ÷ Current liabilities

And, the quick ratio = Quick assets ÷ current liabilities

where,

Quick ratio = Current assets - inventory - prepaid expenses

By considering the two above ratios we could find the liquidity position of the ratio but the current ratio is the best as it includes all the items i,e to be required for it

4 0
3 years ago
Which of the following items are normally classified as current liabilities for a company that has a one-year operating cycle? (
mars1129 [50]

Answer:

  • Sales tax payable    
  • FICA-social security taxes payable due in 40 days  
  • Portion of long term note due in 1 month

Explanation:

Current Liabilities refer to obligations owed in a 12 month period. Anything longer is classified as Long Term.

From the options listed the current liabilities will therefore be;

Sales Tax Payable which are the taxes that the government charges on goods and services and it is the responsibility of business to collect these and remit them to the Government on time. This is a current liability as these are remitted quite frequently.

The FICA social security taxes payable due in 40 days is also a current liability due its time period being less than a year.

A portion of a long term loan due in a month will be considered current also due to its time period.

8 0
3 years ago
Joanette, Inc., is considering the purchase of a machine that would cost $570,000 and would last for 9 years, at the end of whic
arsen [322]

Answer:

The NPV of the project is -$68,870

Explanation:

- We have the cash flows from the investment and its timing as listed below:

+ Year 0 : - (Initial Machine investment cost + working capital) = -$573,000;

+ Year 1 - Year 8, each year: Labor and other cost reduction = $117,000;

+ Year 9: Labor and other cost reduction + Working capital recovery = 117,000 + 3,000 = $120,000.

- Thus, net present value of the project is all the above cash flows discounted at required rate of return 18%, calculated as followed:

-573,000 + [ (117,000/0.18) / ( 1 - 1.18^-8) ] + (120,000/1.18^9) = -$68,870.

- So, the answer is NPV of the project is -$68,870.

4 0
3 years ago
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