1answer.
Ask question
Login Signup
Ask question
All categories
  • English
  • Mathematics
  • Social Studies
  • Business
  • History
  • Health
  • Geography
  • Biology
  • Physics
  • Chemistry
  • Computers and Technology
  • Arts
  • World Languages
  • Spanish
  • French
  • German
  • Advanced Placement (AP)
  • SAT
  • Medicine
  • Law
  • Engineering
Lunna [17]
3 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]3 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.

You might be interested in
Tom Cruise Lines Inc. issued bonds five years ago at $1,000 per bond. These bonds had a 25-year life when issued and the annual
Dmitrij [34]

<u>Solution and Explanation:</u>

Required Return after 5 year =  Real rate of return +   Inflation premium + Risk premium

Required Return after 5 year = 5+2+4

Required Return after 5 year =11%

No of year left to maturity = 25

Annual Interest payment = 15%*1000 = 150

Face value of Bond = 1000

New price of the bond = pv (rate, nper, pmt, fv)

New price of the bond = pv (11%,25,150,1000)

New price of the bond = $ 1336.87

4 0
3 years ago
Nutech Corp. is expecting the following cash flows—$79,000, $112,000, $164,000, $84,000, and $242,000—over the next five years.
Alja [10]

Answer:

$429,560

Explanation:

Present value will be calculated through the PV formula,

PV = \frac{C1}{1+r}  + \frac{C2}{(1+r)^{2} } + \frac{C3}{(1+r)^{3}} + \frac{C4}{(1+r)^{4}} + \frac{C5}{(1+r)^{5}}

r = 15%

C1 = $79,000 ,C2 = $112,000 ,C3 = $164,000 ,C4 = $84,000 ,C5 = $242,000

Substituting the values in the formula,

PV = \frac{79,000}{1.15}  + \frac{112,000}{(1.15)^{2} } + \frac{164,000}{(1.15)^{3}} + \frac{84,000}{(1.15)^{4}} + \frac{242,000}{(1.15)^{5}}

PV = 68,695.66 + 84,688 + 107,838 + 48,030.2 + 120,338.14

PV = $429,560

The present value of the cash flows of Nutech Corp. over the next five years is $429,560.

8 0
3 years ago
A firm's _____ includes its rivals, suppliers, customers, new entrants, substitutes, and complementary products. environmental s
Maslowich

The answer is: competitive environment

The competitive environment of a company include all things that could affect how well the company could sell its product in the market. The factors that could affect such performance include things such as how many rivals sold similar products in the market, consumers' preference, how many products can be used as alternative for the company's product, etc.

8 0
3 years ago
Parker Industries is a small company with a big name! Parker Industries is actually a one-person company that imports strands of
Tamiku [17]

Answer:

Total fixed costs= $150

Explanation:

Giving the following information:

Parker's only overhead is a storage unit for the inventory that costs $125 a month and a $25 monthly fee for website hosting.

<u>A cost is categorized as fixed because it does not vary with production (in relevant ranges).</u>

In this case, the only two cost that is fixed is the storage and website hosting.

Total fixed costs= 125 + 25= $150

7 0
3 years ago
Which of the following statements is false? (5 points)
zheka24 [161]
The correct answer is 

"A great deal often just happens by accident"

Great deals require searching and planning.
6 0
3 years ago
Other questions:
  • ____ are procedures used to verify the truthfulness and accuracy of information that applicants provide about themselves and to
    7·1 answer
  • The elasticity of demand is defined as the percentage change in quantity demanded divided by the percentage change in __________
    13·1 answer
  • Classifying Cash Flows - Identify whether each of the following would be reported as an operating, investing, or financing activ
    15·1 answer
  • David, the CEO of a beverage company, wants to understand the reason for the erratic performance of one of the company's product
    15·1 answer
  • Green Energy​ Inc., is a manufacturer of wind turbines. In the annual​ meeting, the directors are discussing the next​ year's op
    5·1 answer
  • List three methods of searching the major tax service databases. A. ​Keyword, citation, or index B. ​Author, groupings, or conte
    13·1 answer
  • Roger purchased a stock for $16 a share. The stock paid a $1 annual dividend and increased in price by $2 a year for the followi
    14·1 answer
  • An offer that cannot be revoked because an offeror promises to hold the offer open for a specified time in exchange for payment
    9·1 answer
  • Delmar Inc. uses a standard cost system. Labor standards are 2.0 hours per widget at $8.80 per hour. During August, Delmar Inc.
    13·1 answer
  • Consider the following financial statements about DANIEL Co. for the current year 2015
    11·1 answer
Add answer
Login
Not registered? Fast signup
Signup
Login Signup
Ask question!