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Lunna [17]
2 years ago
11

Which of the following statements accurately explains why profits for firms in a perfectly competitive industry tend to vanish i

n the long run? - The demand for products falls over time, so firms are unable to generate revenue. - Prices drop when other perfectly competitive firms see an opportunity to earn profits and enter the market. - Firms that experience losses try to increase supply to cover their costs, leading to zero profits.
Business
1 answer:
Lunna [17]2 years ago
6 0

Answer:

Prices drop when other perfectly competitive firms see an opportunity to earn profits and enter the market.

Explanation:

In a perfectly competitive market, firms can freely enter and exit the market in the long run.

Short run is too short for firms to enter or exit. So when the existing firms enjoy profits in the short run, this attracts the potential firms to enter the market in the long run.

As new firms join the market, market supply increases. This causes the market supply curve to shift to the right. The price level falls.

This causes the market share and profits of firms to decline.

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Explanation:

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2 years ago
Bayside Marina just announced it is decreasing its annual dividend from $1.48 per share to $1.45 per share effective immediately
sleet_krkn [62]

Answer:

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Explanation:

Since we are told that the dividend yield remained the same, and the dividend decreased by 2.03%, we know that the price of the stock decreased by 2.03%.

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5 0
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When Desi was determining which option works best to encourage employee participation when planning important changes, he learne
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Answer:

D) Shared power

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In this case, Desi considers that sharing power with his staff will encourage them to participate more in the planning process. When an employee feels that his participation is valued, he/she will not be afraid or indifferent to do so.

3 0
3 years ago
While the industry for 5G compatible devices is in the introduction stage, the industry for 3G compatible devices are in the mat
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2. How should employers respond to K to 12 graduates who apply for vacant positions in
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8 0
2 years ago
Data concerning Bouerneuf Company's common stock follow:Book value oer share 24.00Market Value per share 18.00Earnings per share
natali 33 [55]

Answer:

3

Explanation:

Price - earnings ratio refers to the ratio between the Market price and the Earning per share. The formula for price - earning ratio is as follows:

Given that,

Book value per share = 24.00

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Earnings per share = 6.00

Par Value per share = 4.00

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              = 3.0

Therefore, the price-earnings ratio would be 3.

4 0
3 years ago
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