1answer.
Ask question
Login Signup
Ask question
All categories
  • English
  • Mathematics
  • Social Studies
  • Business
  • History
  • Health
  • Geography
  • Biology
  • Physics
  • Chemistry
  • Computers and Technology
  • Arts
  • World Languages
  • Spanish
  • French
  • German
  • Advanced Placement (AP)
  • SAT
  • Medicine
  • Law
  • Engineering
wel
3 years ago
7

Why would a producer decide to produce in a competitive market in which she will earn zero profit in the long run? Choose one: A

. Because at zero profit, with her revenue, she can cover all her costs—explicit and implicit (opportunity cost). B. Because the zero profit in the long run is, in fact, zero accounting profit, and it matters only in the books. C. Because in the short run, her profit is always positive. D. Because the producer has a high cost of exiting this market, and it is better for her to continue operating at zero profit.
Business
1 answer:
zhenek [66]3 years ago
4 0

Answer:

Option A : Because at zero profit, with her revenue, she can cover all her costs—explicit and implicit (opportunity cost).

Explanation:

Perfectly Competitive Market

This is simply a market the market participants are said to be price takers that is no consumption decisions by individual consumers and no production decisions by individual producers can be able to affect the market price of a good.

Perfectly Competitive Industry

This is simply an industry where producers are said to be price takers.

Explicit Costs

These are costs that are simply known as "out-of-pocket" costs or in accounting costs. They are an individual's fixed and variable costs of doing business.

Implicit Costs

These are costs that do not partains to monetary payment as they are the opportunity costs of doing business.

It is said that at zero profit, the revenue covers all the costs, including the implicit ones. The fact that her implicit costs are covered shows that no outside option or opportunity that is superior to the zero economic profit option is chosened.

You might be interested in
Cornerstone, Inc. has $125,000 of inventory that suffered minor smoke damage from a fire in the warehouse. The company can sell
kvv77 [185]

Answer:

It is better to cleaned and shipped to the firm's outlet center at a cost of $23,000 to be sold at $80,000

Explanation: In alternative A) the firm loss is $80,000 ($125,000-$45,000)

In alternative E) all $125,000 is lost

In alternative B, C and D) the loss is $68,000 ($125,000-$80,000+$23,000)

Relevant costs are those evitable, that are cause of a manager decision related to an specific business decision.  

The only cost that can be avoided in these example is the cost of $23,000 so the goods can be cleaned and shipped to the firm's outlet center

6 0
3 years ago
Your city newspaper publishes a "Best of" poll that lists its readers' favorite restaurants. Mundo Bar and Grill is ranked as th
jeka94

Answer:

The correct answer is the option C: give too much weight to a small number of vivid observations.

Explanation:

To begin with, in the case that a close friend had told you that he had a bad experience in a certain place, a restaurant in particular this time, does not states the fact that it will always be like that for every person that goes to that place because it may have been a bad day for the employees and that impacts at their work while if you go any other day every detail is taking care nicely. Therefore that the people give too much  weight to small number of vivid observations due to the fact that the article published in the newspaper must have been made with over dozens of observations and comments, not just one, and the major agreement is that those places are good ones to go to eat.

8 0
3 years ago
Read 2 more answers
A newspaper article once reported that the u.s. economy was experiencing a low rate of inflation. it said that "low inflation ha
noname [10]
I think policymakers would link social security payments to inflation to help the recipients with the increased cost of living due to inflation of prices also. I don't think small increases due to a low rate of inflation is a downside because the low rate of inflation means goods and services will not increase much in price so will still be relatively affordable. 
7 0
3 years ago
Jim operates his business on the accrual method and this year he received $4,000 for services that he intends to provide to his
Ainat [17]

Answer:

He can choose to defer the recognition of the income until next year, only if the income is not recognized for financial accounting purposes.

7 0
3 years ago
A rice mill in south Louisiana purchases the trucking firm that transports packaged rice to distributors. This is an example of
Schach [20]

Answer:

forward integration

Explanation:

Forward integration -

It refers to a business strategy , where the business is expanded in order to control the direct distribution or supply of the company's product , is referred to as forward integration .

The method helps to expand and flourish the business .

Hence , from the given scenario of the question ,

The correct answer is forward integration .

8 0
3 years ago
Other questions:
  • ​ home & barn construction, inc., contracts with idyll farms to build a new dairy barn on idyll's property for which idyll a
    11·1 answer
  • The following information pertains to Maynard Corporation’s income statement for the 12 months just ended. The company has an ef
    5·1 answer
  • Presented below is information related to Wise Company at December 31, 2017, the end of its first year of operations.
    12·1 answer
  • What happens to the stockholders when a corporation files for bankruptcy?a. The stockholders must also file for bankruptcyb. the
    8·2 answers
  • From an economic perspective, when consumers leave a fast-food restaurant because the lines to be served are too long, they have
    15·1 answer
  • Transactions Concrete Consulting Co. has the following accounts in its ledger: Cash; Accounts Receivable; Supplies; Office Equip
    13·1 answer
  • A company purchased inventory on January 1, 20X2, for $600,000, and uses the FIFO method. On December 31, 20X2, the inventory ha
    14·1 answer
  • Swift Co. produces footballs. It incurred the following costs this year: Direct materials $35,000 Direct labor 31,000 Fixed manu
    13·1 answer
  • A company with current-year sales of $4,500,000 and cost of goods sold of $3,248,000 reduced its inventory days from 119 days in
    12·1 answer
  • What percentage of each dollar of sales affected net income given Sales of $120,000; Cost of Goods Sold of $70,000; Operating Ex
    5·1 answer
Add answer
Login
Not registered? Fast signup
Signup
Login Signup
Ask question!