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vazorg [7]
3 years ago
11

Suppose the book-printing industry is competitive and begins in a long-run equilibrium. Then Hi-Tech Printing Company invents a

new process that sharply reduces the cost of printing books. Suppose Hi-Tech's patent prevents other firms from using the new technology. Which of the following statements are true about what happens in the short run? Check all that apply. The price of books decreases. Hi-Tech's average-total-cost curve remains the same. Hi-Tech's profits increase. Hi-Tech's marginal-cost curve shifts downward.
Business
2 answers:
Degger [83]3 years ago
6 0

Answer:

All firms get zero profit

Explanation:

Because

When patent expires, it causes free entry of new firms which increases market supply. The market supply curve shifts rightward which decreases price lower than P1. In new long run equilibrium, all firms earn zero economic profit

lubasha [3.4K]3 years ago
5 0

Answer:

d. Hi-Tech's marginal-cost curve shifts downward

Explanation:

In the event where Hi Tech prevents other other firms from using the new technology which sharply reduces the cost of printing books. Hi Tech's marginal-cost curve shifts downward.

Marginal cost can be defined as the additional cost incurred for the production of an additional unit of output. The formula is calculated by dividing the change in the total cost by the change in the product output.

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Answer: d. 30%

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Global brands are companies that have achieved international success such that they are recognised in many other countries apart from their own and have many customers in other countries as well.

However, simply being known abroad does not classify a company as a global brand. The company must be generating sufficient revenue from their operations outside as a proportion of their total revenue their home country with sufficient meaning at least 30% of their revenue.

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3 years ago
Ian has five years of managerial experience with a shopping center. However, he quit his job to attend to his ailing mother. He
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The correct answer is choice C.

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3 years ago
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Answer:

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3.  -He was in excellent shape.

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4 0
3 years ago
Mitchell, a calendar year taxpayer, is the sole proprietor of a fast-food restaurant. His adjusted basis for the building and th
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Answer:

(a) March 12, 2017

(b) Recognized gain = $15,000

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Explanation:

(a)  March 12, 2017 is the earliest Mitchell can acquire a new restaurant and qualify for § 1033 postponement

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 Recognized gain = Award received - cost of land

                               =$625000 - $610,000

                              = $15,000

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(d) If Mitchell does not elect § 1033, his recognized gain is calculated as;

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                            =$625,000 - $450,000

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Also,Mitchell basis for the new land and building is $625000

6 0
4 years ago
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