In a perfectly competitive market in long-run equilibrium, an increase in demand creates economic profit in the short run and <u>induces entry</u> in the long run.
<u>Explanation:</u>
In optimal competition, equilibrium is the position where consumer demands are equal to market supply. In the short term demand will impact equilibrium. In the long run both a product's demand and supply would affect the balance in perfect competition.
In the long run, companies participating in a perfectly competitive market gain zero income. The long-run equilibrium position for a perfectly competitive market emerges in which the demand curve (price) collides the marginal cost curve (MC) and the Average Cost (AC) curve minimum point.
Answer:
ANSWER: Economic Shrinkage
Explanation:
Answer:
Help them evaluate the business' growth
Explanation:
When they set objectives, they can look at it later on and check if they had reached their goal. So they can see how far they've reached as a business.
When preparing the statement of cash flow using the indirect method, Depreciation Expense is Added back to net income under the operating activities.
<h3>What is the indirect method for a cash flow statement?</h3>
The indirect method for a cash flow statement serves as one of the methods that helps in the presentation of data which can be used to display the expenditure of a company during a certain period .
This method takes the company's net income , then perform addition or subtraction on balance sheet items to determine cash flow.
hence, When preparing the statement of cash flow using the indirect method, Depreciation Expense is Added back to net income under the operating activities.
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