Assume that the 4K and OLED television sets industry is perfectly competitive. Suppose a producer develops a successful innovati
on that enables it to lower its cost of production. What happens in the short run and in the long run?The firm will probably incur losses temporarily because of the high cost of the innovation, but in the long run it will start earning positive profits.Initially, the firm will be able to increase its profit significantly, but in the long run its profits will still be greater than zero but lower than its short-run profits because other firms would also innovate.This firm will be able to earn above normal profits indefinitely if it obtains a patent for its innovation.The firm will be able to increase its economic profits temporarily, but in the long run its economic profits will be eliminated as other firms copy the innovation.
The firm will be able to increase its economic profits temporarily, but in the long run its economic profits will be eliminated as other firms copy the innovation.
Explanation:
In perfect competition, no one firm can gain any form of monopoly or price control over the market. This includes things like patents and copyrights that would normally protect an innovation. Because firms cannot protect their innovation, others will soon copy it and they will no longer have a monopoly on the increased profits.
From the question, we are informed that Bullie Jean has $120 to spend and wants to buy cither a new amplifier for her guitar or a new mp3 player to listen to music while working out.
We are further informed that the amplifier and the mp3 player cost $120, each and so she can only buy one. This shows that people face trade offs and have to make a choice regarding some decisions. Here, an opportunity cost will be the one that she didn't buy at the expense of the other.
we are going to hire between 6 and 7 welder as we are given the requirement <u>"for every 200 hours or fewer in a month"</u> we should round above and not below: 7 welder. Besides, we cannot hire "half" or "quarter" of an employee therefore we have to move between integer solutions.
Subliminal stimuli is defined as a stimulus that is below the sensory capacity of an individual. It is below the threshold where the individual can perceive that there is a change in something. For example if a company is producing potato chips and they want to increase salt content.
The point at which the consumer starts to notice a change in salt content of the potatoe chips is above the subliminal stimuli.
Although subliminal stimuli is not readily perceived it can unconciously influence consumer behaviour.
