Answer:
Each firm produces a quantity of 50 in long run equilibrium.
Explanation:
If a perfectly competitive industry of many identical firms has a long-run average total cost of LATC = 800 – 10Q + 0.1Q² and long-run marginal cost of LMC = 800 – 20Q + 0.3Q², for long run equilibrium to occur, LATC must be equal to LMC i.e LATC = LMC.
Equating both cost equation to get quantity Q each firm produces gives;
800 – 10Q + 0.1Q² = 800 – 20Q + 0.3Q²
Bringing all the terms to one side of the equation, we will have;
800-800-10Q+20Q+0.10Q²-0.3Q² = 0
10Q-0.2Q² = 0
Factorizing out Q, the equation becomes;
Q(10-0.2Q) = 0
From the resulting equation;
10-0.2Q = 0
10 = 0.2Q
Q= 10/0.2
Q = 50
This shows that each firm produces a quantity of 50 in long run equilibrium.
Answer:
Social responsibility
Explanation:
Social responsibility is an obligation of a business firm to act in ways that are good to the society. A business firm must act in a way that will benefit the society.
It suggest that a business firm must be concerned about the welfare of the people in the community.
It is ethical of a business to consider the welfare of the people before taking any action in the society. This implies that, a business firm shouldn't only consider making profit or expanding their business but should take into consideration the wellbeing of the people around them.
Social responsibility is not only performed by a business firm but also the duty of every individual that is capable of impacting the environment.
Every individual and business firm should impact the environment in a positive way and Improve on the wellbeing of people dwelling in the environment.
Answer:
Percentage of net sales method
Explanation:
By using the percentage of net sales method, a business assumes that a certain percentage of the year's net sales will be uncollectible. This method relies on historical correlation between sales and uncollectible account from previous periods and can be highly reliable if a strong correlation can be observed.
