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zimovet [89]
3 years ago
11

How do the entry and exit of firms in a purely competitive industry affect resource flows and long-run profits and losses?

Business
1 answer:
Irina18 [472]3 years ago
5 0

Answer:

The fact that in a purely competitive industry there are neither barriers to entry nor barriers to exit is what makes economic profit, in this type of industry, impossible in the long-run.

This is because when there is economic profit in the industry, firms are lured to enter, saturating the market, and lowering economic profit to zero in the process. When this happens, some firms opt out of the industry, bringing economic profit back to positive territory, causing the cycle to repeat itself.

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Identify the difference, advantages and disadvantages between Intuition Assessment and Structured Analytical Techniques (SAT).
Oduvanchick [21]

Answer:

Structured analytic techniques (SATs) are the ways which coherent thought are analysed in a systematic and transparent way so as to share and be critiqued by others.

Intuition Assessment on the other hand, is the way a person reacts to his Intuition and chooses to act on them.

SATs are more useful when it comes to analytical or logical decisions while IA is useful in making in the spot decision based on gut feelings.

8 0
3 years ago
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The advantage of a free market economy is that when it works it can both be reward and perpetuate innovation But they are inherently more risky and does tend to favor those more capital and resources . In an Economic make system with multiple equilibria coordination failure occurs when a group of firms could achieve a more desirable equilibrium but fail to because they do not coordinate their decision making
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Katyanochek1 [597]
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3 years ago
Suppose that Freddie's Fries has annual sales of $520,000; cost of goods sold of $395,000; average inventories of $11,000; avera
Nadusha1986 [10]

Answer:

8.78

Explanation:

The computation of the cash cycle is given below;

We know that

Cash cycle = Inventory conversion period + Receivables conversion period - Payables conversion period.

Here

1. Inventory conversion period = Avg. Inventory ÷ (COGS ÷365)

= (11,000) ÷ (395000 ÷ 365)

= 10.16

2. Receivables conversion period = Avg. Accounts Receivable ÷ (Credit Sales × 365)

= (27000/520000) × 365

= 18.95

3. Payables conversion period = Avg. Accounts Payable ÷ (Purchases  × 365)

= (22000 ÷ 395000) × 365

= 20.33

Now the cash cycle is

= 10.16 + 18.95 - 20.33

= 8.78

8 0
2 years ago
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Answer:

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hope it helps!

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3 years ago
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