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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.

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Assuming there are only two types of outputs in a country: consumer goods and nuclear missiles. All else being constant, as the
MAXImum [283]

Answer:

C. every additional missile will reduce consumer goods production more and more.

Explanation:

Due to the fact there are limited resources in the economy, as more of one product is being produced, there would be less resources available to produce the second good and as a result,  the number of the other good that can be produced would reduce.

As more of one good is produced, the opportunity cost of producing the other good increases.

As more missiles are produced, less consumer goods would be produced and the opportunity cost of consumer goods would increase.

This can be understood by looking at the production possibility curve.

The Production possibilities frontiers is a curve that shows the various combination of two goods a company can produce when all its resources are fully utilised.  

As more quantities of a product is produced, the fewer resources it has available to produce another good. As a result, less of the other product would be produced. So, the opportunity cost of producing a good increase as more and more of that good is produced

It is for this reason that the production possibility frontier is bowed outwards

8 0
3 years ago
The privacy act of 1974 ____.
olga2289 [7]
The answer is D.
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6 0
3 years ago
True or false?
Brrunno [24]
The answer would be true
4 0
3 years ago
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On January​ 1, 2018, Wonderland Sales issued $28,000 in bonds for $20,300. These are eight−year bonds with a stated interest rat
Nimfa-mama [501]

Answer:

$20,781.25

Explanation:

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3 0
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Temka [501]
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x*100=the answer
for quicker reference: the answer is: the baseball player hit the ball 34% of the times he was at bat
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3 years ago
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