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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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The Tolar Corporation has 600 obsolete desk calculators that are carried in inventory at a total cost of $864,000. If these calc
Setler79 [48]

Answer:

The financial advantage over option 2 is $ 20 000 and $ 60 000 in total sales value.

Explanation:

The company has 2 options for the obsolete desk calculators. They can either upgrade them or sell them as they are. We need to compare the 2 options to evaluate their advantage or disadvantage.

To upgrade the calculators we need to spend $200000. However we will then be able to sell the calculators for $260000. This equates to a $60 000 gain

Under option 2 we will just sell the calculators as is for $ 40 000.

Option 1 is the better option. The financial advantage over option 2 is thus $ 20 000 and $ 60 000 in total.

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3 years ago
A fabric company can produce 11,000 yards of fabric per year currently. The company's goal is to increase the amount of fabric i
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6 0
3 years ago
An oligopoly is a market in which a the actions of one seller in the market have no impact on the other sellers' profits. b firm
Sunny_sXe [5.5K]

Answer:

The correct answer is option d.

Explanation:

An oligopoly is a market structure where there are a few producers producing homogeneous products or similar products which are close substitutes. Because of a few firms, there is a high degree of competition in the market.  

The market decisions of a firm affect its rivals, so all the firms are interdependent on each other.  

The firms are price makers. There is high restrictions on entry of firms in the market.

4 0
3 years ago
Louis, an employee at Yoko Inc., had been notified of his termination from the company without sufficient justification. During
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Answer: Explanation

Explanation:

  According to the given question, the explanation is one of the type of determinant of the interactional justice that the Louis not received from his manager as Louis is one of an employee at the Yoko Inc., and without any sufficient explanation he receive a notification for termination.

 The explanation is one of the type of interactional justice determinant that emphasizing the main aspects of the given decision and justify the reasons for their specific decisions.

 The interactional justice is one of the type of concept that helps in explain the positive workplace or environment and it is the main responsibility of the manager to make the effective decisions with justified explanation.  

   Therefore, Explanation is the correct answer.

4 0
3 years ago
Below is the simple process model. What development activity would you choose to add first to this process and why?
Ganezh [65]

In the given Simple Model, I would like to add Requirements Gathering and Analysis after the Problem Statement. Because we know the problem description and we need to derive the requirements using the given data.

<h3><u>What exactly does "process modeling" mean?</u></h3>

Business processes or workflows are represented graphically in process modeling. Similar to a flow chart, each stage of the process is broken down so that a complete picture of the tasks involved in it within the context of the business environment is available.

A process model enables business processes to be visualized, helping firms better understand their internal business processes and manage and improve them. This is typically a flexible exercise for ongoing development.

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<u>What advantages does process modeling have?</u>

Business processes are given a visual representation through the process modeling method, making it easier for users to analyze them and determine how they might be improved. Process modeling also has additional advantages, such as:

  • Increased effectiveness
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  • Ensure best practices
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Learn more about business with the help of the given link:

brainly.com/question/11357749

#SPJ4

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