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AlexFokin [52]
3 years ago
5

Suppose independent truckers operate in a perfectly competitive constant cost industry. If these firms are earning positive econ

omic profits, what happens in the long run to the following: The price of trucking services
Business
1 answer:
Deffense [45]3 years ago
8 0

Answer:

The price of trucking services would fall until equilibrium prices are reached. Only normal profit would be earned in the long run

Explanation:

A perfect competition is characterized by many buyers and sellers of homogenous goods and services. Market prices are set by the forces of demand and supply. There are no barriers to entry or exit of firms into the industry.  

In the long run, firms earn zero economic profit.  If in the short run firms are earning economic profit, in the long run firms would enter into the industry. This would drive economic profit to zero.  

Also, if in the short run, firms are earning economic loss, in the long run, firms would exit the industry until economic profit falls to zero.  

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Use the drop-down menus to indicate whether each of the following events would be recorded as revenues or expenses at the time i
nikitadnepr [17]

Answer and Explanation:

The classification is as followS:

<u>Transactions                                 Accrual basis        Cash basis </u>

1. Cash received in advance      Not record              record the revenue

2. Purchase supplies                  Not record              Not record the expense

3. Received cash for services     record  revenue       record revenue

4. Perform services                     Record revenue       Not record the revenue

5. Pay cash for the supplies         Not record          record the expense

In this way it should be classified

4 0
3 years ago
It is estimated that the average cost of an outbound telemarketing sales calls on a business customer is about __________, versu
4vir4ik [10]

Answer:

Around $35

Explanation:

Telemarketing sales calls offers lots of advantages like boosting sales in most organizations. You will have to sign a contract where you agree to pay for a minimum number of hours.

Another advantage is that If you need to do some research in advance of product development or product launches, there is some value in having those research calls made by the same telemarketing team that will ultimately be selling the product.

4 0
3 years ago
Mason works at a toy assembly plant and is responsible for the various departments that perform different functions. he helps pe
julia-pushkina [17]

Based on the scenario above, Mason is likely to be the general manager. It is because he helps people in different departments in regards of specific tasks in which a general manager would do, while Julio is considered to be a functional manager because he makes sure that everyone in his department has the skills and training in which a functional manager is responsible of.

6 0
3 years ago
1. Stock A has an expected return of 7%, a standard deviation of expected returns of 35%, a correlation coefficient with the mar
posledela

Answer:

Option A is riskier

Explanation:

In this question, we want to know which of the two stocks is riskier.

To answer this, we can use the standard deviation of returns as a risk measure.

For a security with a big value for standard deviation of returns, its per period returns are wider making its range per day large.

Hence, what this means is that out of the two stocks, the one with a larger value of standard deviation of returns will guarantee more risk as it is expected to give a better ranges of price

Now back to the values in the question, we can see that the standard deviation of returns of stock A is greater than that of stock B which this makes it a more risky option

4 0
4 years ago
"Addison Corp. is considering the purchase of a new piece of equipment. The equipment will have an initial cost of $522,000, a 3
Vlad [161]

Answer:

$31,320.00

Explanation:

The formula for accounting rate of return is the annual net cash flow divided by the initial investment.

If the initial investment was $522,000 and the accounting rate of return is computed to be 6% per year, hence the annual increase in cash flow accruing from the investment can be calculated by changing the subject of the formula.

ARR=annual increase in cash flow/initial investment

ARR is 6%

initial investment is $522,000

annual increase in cash flow?

6%=annual increase in cash flow/$522,000

annual increase in cash flow=6%*$522,000= $31,320.00  

4 0
3 years ago
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