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irga5000 [103]
3 years ago
6

A firm will exit a competitive market when A. costs force the marginal cost curve to shift to the left. B. the longrun profit wo

uld be negative. C. it can earn only earn a zero longrun profit. D. Both B and C.
Business
1 answer:
kakasveta [241]3 years ago
4 0

Answer:

B. the longrun profit would be negative.

Explanation:

A perfect competition is characterized by many buyers and sellers of homogenous goods and services. Market prices are set by the forces of demand and supply. There are no barriers to entry or exit of firms into the industry.  

In the long run, firms earn zero economic profit.  If in the short run firms are earning economic profit, in the long run firms would enter into the industry. This would drive economic profit to zero.  

Also, if in the short run, firms are earning economic loss, in the long run, firms would exit the industry until economic profit falls to zero.  

A firm would shut down in the short run if price is less than average variable cost and exit if it  is making a loss

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What is one major disadvantage of a capital formation strategy that focuses only on high risk investments
Troyanec [42]

Answer:

It increases the chance that the investment will lose all value.

Explanation:

If you go for a risky investment, it could increase the chance of it being a waste of time and money to sum it all up. But the answer you seek is, "It increases the chance that the investment will lose all value."

8 0
2 years ago
Park & Company was recently formed with a $6,200 investment in the company by stockholders in exchange for common stock. The
KengaRu [80]

Answer:

a) $14,600.

Explanation:

The computation of the company total assets are shown below:

= Cash balance + supplies balance + equipment balance

where,

Cash balance =  investment amount + borrowed amount - paid amount for equipment

= $6,200 + $3,200 - $2,120

= $7,280

And, the other item values would remain the same

Now put these values to the above formula  

So, the value would equal to

= $7,280 + $1,120 + $6,200

= $14,600

4 0
3 years ago
A stock produced returns of 14 percent, 17percent, and -1 percent over three of the past four years, respectively. The arithmeti
mariarad [96]

Answer:

11.23%

Explanation:

Arithmetic return = Total return/Total time period  

6% = (14% + 17% - 1% + x%) / 4

(6%*4) =30% + x

24% = 30% + x

x = (24% - 30%)

x = -6%

<em>For the standard deviation, we need to use </em><u><em>stdev.s function</em></u><em> in Ms Excel</em>

Standard deviation = stdev.s (14%,17%,-1%,-6%)

Standard deviation = 0.112249722

Standard deviation = 11.23%

So, the standard deviation of the stock's returns for the four-year period is 11.23%.

3 0
3 years ago
Flint Company signed a long-term noncancelable purchase commitment with a major supplier to purchase raw materials in 2018 at a
Salsk061 [2.6K]

Answer:

JOURNAL ENTRY :

Unrealized holding loss on purchase commitment - - - - - $48,700 Dr.

Estimated liability on purchase commitment ($990,700 - $942,000) - - - - 48,700 Cr.

Explanation:

Given the following :

Agreed purchase price of raw materials in 2018 = $990,700

Market value of raw material at 31, December 2018 = $942,000

JOURNAL ENTRY :

Unrealized holding loss on purchase commitment - - - - - $48,700 Dr.

Estimated liability on purchase commitment ($990,700 - $942,000) - - - - 48,700 Cr.

7 0
3 years ago
More than two-thirds of business meetings are considered to be what
coldgirl [10]

Complete Question:

More than two-thirds of meetings are considered to be:

A. Highly engaging and productive

B. More effective than a well-worded email

C. Slow sometimes, but mostly entertaining

D. A waste of time

Answer:

D. A waste of time

Explanation:

This answer implies that the number of business meetings should be reduced.  Issues discussed at business meetings can be ironed out through other means of communication.  For example, emails can be used.  Instructions and other information can be passed to the team without necessarily holding meetings.  Teams can interact effectively and efficiently without holding face-to-face meetings.  Some meetings are not productive at all, as the head of the meeting still dominates the speeches instead of giving the team members a conducive environment to air their concerns and opinions and make effective suggestions that will improve business performance and outcomes.

3 0
4 years ago
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