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3 years ago

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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Joss is a marketing consultant Iris and Daphne are potential customers interested in commissioning Joss to undertake a market su

Norma-Jean [14]

Answer:

Explanation:

Assuming information asymmetries in the market, and Iris and Daphne are incapable of compare their willingness to pay against the average price of the market for this type of service, C is true since Joss maximize the economic surplus by increasing his productivity using the time better than his opportunity cost.

8 0

3 years ago

Hogan Industries had the following inventory transactions occur during 2017: Units Cost/unit Feb. 1, 2017 Purchase 110 $46 Mar.

Rama09 [41]

Answer:

The answer is: Gross profit = $2,788

Explanation:

Feb. 1 Purchase 110 units $46 per unit
March 14 Purchase 190 units $48 per unit
May 1 Purchase 135 units $ 50 per unit

312 units were sold at $64 per unit, tax rate is 30%

Using FIFO, what is the company's gross profit? We first calculate COGS

Cost of goods sold - 312 units:

110 units at $46 per unit = $5,060
190 units at $48 per unit = $9,120
60 units at $50 per unit = $3,000

Total COGS = $17,180

Income statement for Hogan Industries 2017

Total revenue $19,968

COGS ($17,180)

Gross profit $2,788

Taxes 30% ($836.40)

Net profit $1,951.60

6 0

2 years ago

To be effective as a successful general manager of a hotel, the manager should exhibit all of the following traits except: Group

Masja [62]

Answer: The manager should exhibit all the traits except computer programming skills.

Explanation: A successful general manager or a manager that is striving to be successful will/should possess the following traits:

1. Attention to detail; this is a very important trait and could be the difference between keeping a client and losing one. This is because clients want to feel and be treated specially and uniquely. Therefore an attention to detail will help the manager ensure that each client is treated specifically and differently from the next client.

2. Follow through leadership: this trait is very important in order to maintain cohesion among the team members and subordinates.

3. People skills: this is a very important trait because it is very vital in person-to-person interactions, especially when interacting with hotel guests.

4. Effective delegation: one person cannot perform all the tasks in a hotel, therefore it falls on the general manager to be able to assign roles to individuals that are best suited to perform the tasks. This is a very important trait and will ensure that resources are properly utilized.

Computer programming skills is not a trait requires of a hotel general manager. This is because the role can be assigned to a computer programmer while the general manager faces other tasks that require his/her attention.

8 0

3 years ago

"tractor is a modern tool of agriculture".justify this statement with suitable example

Elenna [48]

Answer:

Tractors are the king among different farm equipment. They are the main workhorse of any modern farm. They provide the power and traction necessary to mechanize agricultural tasks. ... There are different types of tractors in the market, varying in size and capacity.

Explanation:

3 0

2 years ago

Sandusky Company borrowed $28,000 from the Lakeside Bank by issuing a 10% three-year installment note. Sandusky agreed to repay

Marrrta [24]

Answer:

the amount of the interest expense associated with the second payment would be $1,954

Explanation:

According to the given data we have the following:

Amount borrowed= $28,000.00

10% interest=$28,000×0.10=$2,800

Therefore, Total outstanding at end of year 1=$28,000+$2,800

Total outstanding at end of year 1=$30,800

Sandusky agreed to repay the principal and interest by making annual payments in the amount of $11,259.21, therefore

Net balance at end of year 1= $30,800-$11,259.21

Net balance at end of year 1=$19,540.79

Hence, To calculate the amount of the interest expense associated with the second payment we would have to make the following calculation:

amount of the interest expense associated with the second payment= $19,540.79×10%=$1,954

6 0

3 years ago