Answer:
The correct answer is option B.
Explanation:
In a competitive industry there is no restriction on entry or exit of firms in the market. So, when in the short run the firms are enjoying super normal profits or positive economic profits, this would attract potential firms to join the industry in the long run.
As a result the industry supply will increase in the long run. The increase in supply would cause the price to fall. This would further contribute in reducing revenue and profit.
This process will continue till the profit is reduced to zero. If profit falls below zero, then firms incurring loss will exit the industry. Then again zero profits will be restored by reduction in supply and increase in price.
So, we can say that perfectly competitive firms will have zero economic profits or only normal profits in the long run.
Answer:
D. C
Explanation:
As Downtown Coffee Roasters is a premium cafe which is reputed for its superior customer service. The coffee shop also serves gourmet food to its customers, which allows it to charge a premium price. Whereas, Budget Beans is a chain of coffee shops that charges the lowest price in the industry due to its self-service policy. However, Perky's Coffee Inc. has found a balance between these two strategic groups by using automated ordering to free up its employees to work as master baristas and bakers, thus focusing on creating excellent products. It charges a price slightly above that of Budget Beans. In this scenario, Perky's Coffee is following a blue ocean strategy. In blue ocean strategy, organizations pursuit differentiation and low cost at the same time simultaneously which Perky's Coffee Inc. is doing here in this case. Perky's has created a totally new demand by following this strategy quite successfully and has made the competition totally and almost irrelevant.
Answer:
D. Graphic designer
Explanation:
Graphic designers use visual arts such as images, words, and graphics to communicate with their audience. They may use hand or computer software to create captivating messages that inform, inspire, and attract customers' attention.
The objective of marketing is to make customers interested in the company's products. Graphic designers can use their talents to create charming visual arts to make customers want to buy a company's products. Graphic designers can be employed, but the majority work as independent contractors. Lisa has the skills to be a graphic designer. She can practice her talent as a self-employed individual.
Answer: $527,000
Explanation:
Salaries to authors = $347,000
Fees to contracted editors = $180,000
Copyrights obtained = $83,000
Purchase of a new printing warehouse = 1.3 million
Upgrade of current printing equipment = $560,000
McKinney Enterprises expense will be:
= Salaries to authors + Fees to contracted editors
= $347,000 + $180,000
= $527,000
