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3 years ago

What does zero economic profit mean in a perfectly competitive market in the long run?

1 answer:

7 0

The existence of economic profits attracts entry, economic losses lead to exit, and in long-run equilibrium, firms in a perfectly competitive industry will earn zero economic profit. ... It will induce entry or exit in the long run so that price will change by enough to leave firms earning zero economic profit

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g You are the assistant to the CEO of a small technology firm that manufactures quality, premium-priced, stylish clothing. The C

antoniya [11.8K]

Answer:

Explanation:

Based on the information provided it can be said that the best advice would be to mention that an in-depth analysis of the countries in which the firm is considering exporting to needs be done. This is because every country has unique differences in various areas such as its laws, culture, stability, etc. This information can drastically change the odds in regards to being profitable in that specific area, and can therefore, change the decision of whether to export to that country or not.

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2 years ago

You and your neighbor Diane have agreed to be partners in CreatePlace Site Design, a website design business for small businesse

kramer

Diane wants to invest $5,000 but she will not have an active role in the new business. (limited partnership) You prefer to work directly with customers, make decisions, and to do the actual website design. (limited partnership) You will be responsible for signing contracts on behalf of the new business.(limited partnership) Diane will not be liable for any debts.(limited partnership) Diane will not make business decisions and receive 30 percent of the profits. (limited partnership) You will receive 50 percent of the profits plus a small monthly fee for management services. (general partnership) Diane’s name will not be mentioned in any promotional materials about the business. (limited partnership)

<span>Diane will be the limited partner while you will be the general partner.</span>

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3 years ago

Pizza Vesuvio makes specialty pizzas. Data for the past 8 months were collected: Month Labor Cost($) Employee Hours January 9,29

Ierofanga [76]

Answer:

1. $2,296

2. $19.58

3. Total labor cost = Fixed cost + (variable cost × employee hour)

Explanation:

The computations are shown below:

1. The fixed cost would be

= High labor cost - (High employee hours × Variable rate per hour)

= $10,324 - (410 hours × $19.58)

= $10,324 - $8,028

= $2,296

2. Variable rate per hour = (High labor cost - low labor cost) ÷ (High employee hours - low employee hours)

= ($10,324 - $6,800) ÷ (410 hours - 230 hours)

= $3,524 ÷ 180 hours

= $19.58

3. The cost formula would be

Total labor cost = Fixed cost + (variable cost × employee hour)

= $2,296 + ($19.58 × employee hour)

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3 years ago

The environmental protection agency of a county would like to preserve a piece of land as a wilderness area. The current owner h

charle [14.2K]

Answer: The answer is given below

Explanation:

Here , we are going to apply the present value of annuty formula.

a. Social Opportunity cost = $1.1 Million

The Yearly cash flows = $110,000

Time (n) = 20 years

The Discount rate (R) = 4%

Net benefits= Present value of cash inflows - the intial socail opportnity cost

Net benefits= Yearly cash flow × (1 - 1/(1+R)^n) / R - 1100000

Net benefits = 110000 × (1 - 1/1.04^20)/0.04 - (1100000)

= $394936

b. We will use the formula for present value of an annuity with the growth rate in benefits as 2 percent.

Firstly, dg= (0.04 - 0.02)/ (1+0.02)

= 0.01961

PV(benefits) = [($110,000)÷ (1+0.02)][1-(1+dg)-20]/dg]

= $1,770,045

NPV = $1,770,045 - $1,100,000= $670,045

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3 years ago

Indirect labor includes:_________ (You may select more than one answer. Single click the box with the question mark to produce a

ch4aika [34]

Answer:

b labor of the maintenance employees

c labor of the clerical staff

Explanation:

During the production or composition of finished goods, some form of labors are directly or indirectly involved in the manufacturing of such finished product. Where labor is not readily traced to the manufacturing of finished product, such is known as indirect labor.

On the other hand, labor that is directly involved in the composition of finished product is known as direct labor. Examples of indirect labor are ; wages of supervisors , clerical staff, general helpers , material handlers and maintenance workers.

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2 years ago