Answer:
<em>When firms exit a market, the short-run market supply curve shifts left, causing individual firms’ profits to increase.</em>
Explanation:
The process of <em>free entry and exit of firms</em> is in a sequence as explained under-
- If there is higher demand in the market of the product as compared to its supply, then each firm in the market will receive higher price for its product.
- This will increase the prices of the product, enabling higher profits for each firm. This will make the industry attractive, enabling the introduction of newer firms in the market.
- When the new firms enter the industry, the prices of the product in the market will drop due to higher competition, now present currently. This will lead to lowering of profits for the firms in the industry.
- This will make the industry non-attractive and thereby the less competitive and less effective firms will exit the market in the short run.
- This exit of firms from the industry, will lead to higher prices again due to less supply of product in the market as compared to its demand. Hence, the profits of the firms present in the industry will increase.
Thus, it can be concluded that <em>when firms exit a market, the short-run market supply curve shifts left, causing individual firms’ profits to increase.</em>
Answer:
In simple words, it is hard for governments to break he monopolies as generally as these entities are generally protected by some kind of legal or social convention. A monopoly of an entity that has strategic importance for the nation could be harmful in long run. Also if an individual owns a monopoly due to some patent right etc. then breaking that up will be seen as social injustice.
Answer:
The correct answer is letter "A": Unexpected increases in the number of suppliers.
Explanation:
Frauds or money cleansing usually requires the help of a network of different business interconnected to clear the illegal funds with the excuse of having made commercial activities that never took place. In most cases, accounting documents are faked so that the proceeds of the questionable funds may seem as legal as possible.
In that case, if a company counts with more suppliers and fraud is taking place in the organization, <em>they will have the excuse of making more payments so more funds can go out of the company</em>.
Answer:
The new truck will enter the account with the invoice value.
new truck 122,000
ac dep old truck 44,000
loss on trade 22,000
Cash 110,000
Old Truck 78,000
Explanation:
Old truck 78,000
acc depreciation 44,000
net-book value 34,000
trade-in allowance 12,000
loss on trade 22,000
The new truck will enter the account with the invoice value.
