If a firm has an incentive to increase supply now and decrease supply in the future, then the firm expects that the

1 answer:

3 0

<span>If a firm has an incentive to increase supply now and decrease supply in the future, then the firm expects that the prices for the firm's product will be lower than the prices that have been set in the present. In the present case as the supply is increased, the prices are higher as the demand is higher. Then at later point of time when the supply is decreased, then demand also decreased, then the prices are likely to come down.</span>

You might be interested in

Which of the following are examples of natural barriers to entry? Correct Answer(s) Drag appropriate answer(s) here Smaller comp

andreyandreev [35.5K]

Answer:

These are correct:

Smaller companies with smaller production processes have higher per unit costs than larger companies. - smaller firms find it harder to adopt economies of scale to reduce costs.
Over time, a firm takes control of 85% of the world’s supply of a chemical used in the production of plastic. - the firm has almost total control over a scarce resource, and new competitors have to scramble for the remaning 15%. (note: this is a natural barrier to entry as long as the pharmaceutical company did not collude with the government to reach such a high market share, in said case, it would be an artificial barrier to entry).
Lenders are hesitant to provide funding for new firms that will compete with a large, well-established firm. - a small firm may lack market credibility in the financial markets, because investors are hesitant about the future of the company, or do not expect high rates of return.

5 0

3 years ago

Gwen deposits $5,000 with Home Bank on July 1, 2018. Home Bank promises to repay Gwen the $5,000 plus 1 percent annual interest

Allisa [31]

Answer:

certificate of deposit

Explanation:

A certificate of deposit (CD) is a financial instrument sold by banks

The bank gives this CD to Gwen. She cannot withdraw the cash until July 1, 2023

The certificate of deposit are risk-free investment. The difference with savings account is that a certificate of deposit has a fixed term and fixed interest rate and it is create with the idea of holding the title until maturity. Not doing so, may inccur in penalties so a portion of the interest will be negate.

As this is a financial instrument, the bank issued a title to the investor to recognize his investment.

7 0

3 years ago

Read 2 more answers

How is creative thinking similar to a child’s thinking? A. Neither process restricts itself to logical solutions. B. Both though

-BARSIC- [3]

Answer: D. Both thought processes are linear

Explanation: I think I'm not too certain.

5 0

2 years ago

"Global Marketing refers to: Group of answer choices The evolution of Marketing as being more than the offering of a product. Th

geniusboy [140]

Answer:

Global Marketing refers to the processes by which goods,services,capital,people,information,and ideas flow across national borders.

Explanation:

We operate in a world called global village,where time and location do not really impact doing businesses anymore, as people from different countries that are far apart, can do business without the need to physically meet, using different channels of communication made possible by advancement in technology.

Organizations,as the need to for businesses to sell its produce to a larger number of customers increases, are constantly considering selling to customers who are based in other countries through global marketing techniques.

5 0

3 years ago

Kentucky Corporation uses a process-cost accounting system. The company adds direct materials at the start of its production pro

saul85 [17]

Answer:

The following sets of percentages would be used to calculate the correct number of equivalent units in the ending work-in-process inventory:

D. Materials, 100%; conversion cost, 60%.

Explanation:

<em>The above is actually the best option which would be used to calculate the correct number of equivalent units in the ending work-in-process inventory.</em>

8 0

2 years ago