Answer:
a. the portion of its marginal cost curve that lies above the AVC
Explanation:
In short run, a perfectly competitive produces as long as its price is above its AVC, so revenues can cover total variable cost. If price is below AVC, the firm has to shut down. Since such a firm maximizes profit by equating Price with MC, this condition means that firm's supply curve is its MC curve lying above the (minimum point of) AVC curve.
Assume that the market for corn is perfectly competitive. Currently, firms growing corn are generating losses. In the long run, we can expect "some firms to exit causing the market price of corn to rise.".
<h3>What is perfectly competitive market?</h3>
According to economic theory, perfect competition exists when all businesses sell the same goods, market share has no bearing on prices, businesses can enter or quit the market without any obstacles, consumers have perfect or complete information, and businesses are unable to set prices.
There are five characteristics that have to exist in order for a market to be considered perfectly competitive. The characteristics are -
- homogenous items,
- no entry or exit obstacles,
- price taker sellers,
- transparent products, and
- no seller has any control over market prices.
The three key components of perfect competition are as follows:
- There are a lot of buyers and sellers in the market.
- These buyers and sellers are in competition with one another.
- The good being offered or purchased is uniform.
- Companies are free to enter or leave the market.
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<span>a contractionary fiscal policy that will shift the aggregate demand curve to the left by an amount equal to the initial change in investment times the spending multiplier.</span>
Answer:
One way in which society has not benefited from the increasing police professionalism is because of the increase, community relations between civilians and police suffered despite the removal of political involvement.
Answer:
Deferred income tax expense = $7,161
Explanation:
Given:
Bed debts increase = $6,800
Depericiation increase = $40,900
Tax-exempt life insurance = $3,450
Computation:
Assume tax rate = 21%
Taxable difference = 40,900 - 6,800
Taxable difference = 34,100
Deferred income tax expense = 34,100 × 21%
Deferred income tax expense = $7,161
