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.
The answer from given choice is "C", "Payday Lender" is not a type
of bank.<span>
Payday lender involve the basic loan procedure where a lender
is providing a short-term loan which
has to be paid back when the borrower's next payday come, that is a
simple loan process which has nothing to do with a bank.</span>
Answer:
Allocated to Totes =$ 13,620.94
Explanation:
<em>Allocated overhead to totes = OAR × actual direct labour cost </em>
Overhead Absorption Rate(OAR) = Estimated Overhead/Estimated Direct labour cost
Estimated Direct labour cost = (54×530) + (64× 390
)=$53580
OAR = $25,500/$53,580 = 47.59%
Allocated to Totes = 47.59% × (54×530) = 13,620.94
Allocated to Totes =$ 13,620.94
Answer:
B. is the price at which a firm's total revenues equal total costs
Explanation:
The short run in economics is a period of time in which one factor of production is fixed and others are varied. In the short run, the market is not fully in equilibrium. Break even is the point in which the total cost used in the course of production is equal to the total revenue earned from the products produced. In a break even scenario, there is no profit and there is no loss. At this point, firms are making normal rate of return on money invested and are able to settle all cost of production.
<span>The company could consider diversifying when sales are beginning to slow and there is a way to leverage some of the business's core competencies in other areas that would be more competitive. In addition, this could allow the business to not worry about being "all-in" in a certain area, where that area's success or failure could lead to the entire business thriving or failing. By diversifying itself, the business can also lower production and sales costs or increase overall sales.</span>
