If all firms only earn a normal profit in the long run, firms will develop new products or lower-cost production methods because they can innovate and possibly earn an economic profit in the short run.
Explanation:
Competition involves constant efforts by companies and executives to do more than the loss (normal gains) of new goods or by improving ways to manufacture current products at lower prices. Therefore, if businesses can invent, they will achieve short-term economic advantage.
Economic benefit encourages entry, economic losses lead to exit and firms in a highly profitable market earn little economic income in a long-term equilibrium. In an industry where inflation does not change the costs of materials (a market with a constant cost), the long-term supply curve is a horizontal line.
Answer:
a) Appeal to the receiver's sense of responsibility and pride in the company's good name
Explanation:
Persuasive messages refer to communicating an idea so as to persuade the recipient towards an action.
Such messages are usually drafted by sales and marketing personnel.
While drafting a persuasive message, AIDA (Attention, interest, desire and action) principle is usually followed by the marketers.
In the given case, Mikhail's claim has already been denied once and he is drafting the second persuasive message. As he expects resistance from the media company, he should draw the attention of the recipient towards their own responsibilities and duties and pride relating to the good reputation of the company.
He may choose to express, what the receiver's responsibility and duties are and how non performance of those puts the company's reputation (pride) at stake.
B. The equilibrium price is below the price ceiling.
