Answer:
No, Elevators, Inc. has not broken the law because "grease" payments are permitted under United States law.
Explanation:
Under the law, it is illegal to bribe foreign officials to obtain business. But there is an exception for “facilitation payments,” also known as grease payments made to speed up routine government actions.
Final answer:
Elevators, Inc. has broken U.S. law by paying a bribe to a foreign government official as per the Foreign Corrupt Practices Act (FCPA).
Explanation:
The question revolves around whether Elevators, Inc. has violated United States law by authorizing a project manager to pay a foreign government official to expedite the building permit process. According to the Foreign Corrupt Practices Act (FCPA), U.S. companies are prohibited from making payments to foreign officials for the purpose of obtaining or retaining business. Therefore, the act of paying a 'fee' to a foreign government official would be considered a bribe and is illegal under U.S. law, regardless of whether it is common practice in the foreign country or if the payment was made in U.S. currency.
The following information came from the income statement of the Wilkens Company at December 31, 2017: sales revenue $1,800,000; beginning inventory $160,000; ending inventory $240,000; and gross profit $600,000. Inventory turnover is 6 times per year. What is Wilkens' days in inventory for 2017?
Answer:
Wilkens' days in inventory for 2017 = 60.833
Explanation:
Given:
Sales = $1,800,000
Beginning inventory = $160,000
Ending inventory = $240,000
Gross profit = $600,000
Inventory turnover = 6 times
Wilkens' days in inventory for 2017 = ?
Computation of Wilkens' days in inventory for 2017:
Wilkens' days in inventory for 2017 = Number of days in a year / Inventory turnover
Wilkens' days in inventory for 2017 = 365 / 6 times
Wilkens' days in inventory for 2017 = 60.833
Holmgren Hotels’ stock has a required return of 8 percent. The stock currently pays a dividend of $1.00 per share. The dividend is expected to stay the same for two years. After two years, the dividend is expected to grow at a rate of 6 percent forever. What should be Holmgren’s stock price today?
Answer:
$48.09
Explanation:
using the constant growth model, we can determine the price of the stock in two years:
stock price = $1/1.08 + $1/1.08² + [($1 x 1.08)/(8% - 6%)] /1.08²
the constant growth formula = ($1 x 1.08)/(8% - 6%) = $54stock price = $1/1.08 + $1/1.08² + $54/1.08² = $0.93 + $0.86 + $46.30 = $48.09
To calculate the stock price of Holmgren Hotels' today, we need to calculate the present values of the expected dividends and add them together. This is done by applying the Gordon growth model. The calculated stock price of Holmgren Hotels' is approximately $38.41.
Explanation:The subject of this question pertains to the field of Finance, often taught under the broader umbrella of Business studies. We will use a formula of a stock's valuation in financial markets, which are typically calculated using expected dividends and a required rate of return using a perpetuity growth model. First, we calculate the present values (PV) of the dividends for the first two years: PV = D1 / (1+r) + D2 / (1+r)^2, where D represents the dividend and r represents the required rate of return. In this case, D1, D2, and r are $1, $1, and 8% respectively. This gives us PV of approximately $1.74.
These dividends are expected to grow at a rate (g) of 6 percent, starting from the third year. We can therefore use the Gordon growth model, which approximates the price of a dividend-paying stock: P = D3 / (r-g), where D3 is the dividend of the 3rd year, which is the dividend of the second year grown by g. This gives us P of approximately $36.67. To get the current stock price, we add the present values obtained from these two stages together, giving us a final value of around $38.41. Hence, the price of formulating Holmgren Hotels' stock should be approximately $38.41 today.
Learn more about Stock valuation here:https://brainly.com/question/34033370
#SPJ12
Quantification Group of answer choices often makes our observations more explicit. limits the possibility of statistical analyses. can increase bias. can make it more difficult to aggregate data. can make it more difficult to summarize data.
Answer:
The correct answer is letter "A": often makes our observations more explicit.
Explanation:
Quantification helps to add or to summarize information faster. In this process of data classification, statistical analysis can be generated which allows data understanding to be easier through the arranging of information through charts. Therefore, data is more explicit. To do so, mathematical calculations may be necessary.
While the majority of economists acknowledge that intellectual property rights do provide a method for increasing the rate of return for inventors, some have suggested there are number of reasons to doubt whether patents provide
A. sufficient benefits for society as a whole.
B. completely appropriate benefits for the whole of society.
C. completely appropriate incentives for innovation.
D. sufficient incentives for innovation, as well as c.
Answer:
D. sufficient incentives for innovation, as well as c.
Which of the following techniques can be used to narrow options for increased decision-making effectiveness? A. Applying different analytical approaches. B. Using weighted voting or multivoting techniques. C. Agreeing on a set of win/lose techniques. D. Conducting brainstorming sessions.
Answer:
A. Applying different analytical approaches.
Explanation:
In decision making, it is advisable to apply different analytical approaches. In doing this, you are able to know the pros and cons of the different approaches.
This will thus help one narrow options for increased decision-making effectiveness.
The ________ is the fraction of earnings reinvested in the firm.
a. dividend payout ratio
b. dividend payout ratio and plow back ratio
c. retention rate plow back ratio retention
d. rate or plow back ratio
Answer:
C, retention rate and plow back ratio
Explanation:
Retention rate can simply be said to be the ratio between retained earning and earnings at risk; i.e the rate of earnings that one is assured of as against the one you're not assured of. The same can be said about plow-back ratio. The plow-back ratio can be defined as the ratio of how much earnings are retained after dividends have been paid out.
This retained earnings are then reinvested into the firm to yield another dividends and the cycle continues.
Cheers.
A marketing professor wanted to do everything possible to ensure that her students understood her lectures. Accordingly, she used examples of marketing activities with which most students were familiar. For example, the professor discussed the marketing exchanges between students and grocers, college bookstores, convenience stores, and clothiers. The examples used by the professor were her attempt to ________ her message to encourage better understanding on the part of her students.
Answer:
effectively encode
Explanation:
The aim of communication is to create an understanding between the receiver and the sender. Effectively encode means that the sender is making an attempt to deliver the message in a coded manner such that it would be clearly and easily understood by the receiver.
Example of effectively encode message is when a teacher uses marketing activities which students are familiar with like an exchange between students and grocers, college book stores, convenience stores and clothiers.
In the example above, the sender is able to accomplish his mission of effectively delivering the message by making comparisons that are familiar to the students.
Answer:
Sarah is attempting to effectively encode her message to encourage better understanding.
Explanation:
To begin with, encoding is a term in communication which describes the conversion of ideas into gestures or words that convey meaning. In other words, it is the art of channelling information to receivers in ways that they can understand.
As a professor marketing, Sarah is well versed in marketing exchange but wants to ensure that her students understand the concept better as she does. To achieve this, Sarah logically converts the ideas (encode) she has on marketing exchange through lots of relatable examples that foster better or effective understanding of the subject matter.
Biff has just seen an ad in the paper for a new Nissan pickup truck for $15,000. He hurries to his local dealership but is disappointed to learn that the truck is already beensold. "Don't worry," the salesman tells him, "I can make you a terrific deal on a different truck for only a few dollars more per month." Which of the following tactics is the salesman using?A. Door in the faceB. Bait and switchC. LowballD. Disrupt then reframe
Answer: B. Bait and switch.
Explanation: Bait and switch is a fraudulent sale tactics aim at deceiving customers by placing advertisements for a low price of a product "bait", but when the customer gets there to buy the product it become unavailable then another product with higher price is introduced to the customer " switch".
In this case Biff was made to believe he can get a Nissan for $15,000 but on arrival the salesman claims product sold out and then introduced him to a different truck with higher price which was the salesman plan initially.
Much fanfare was made about anthony's latest bonus in the office. he has always been a high performer. however, this year he received an extra-large bonus. his co-worker hannah got a little tired of hearing about anthony's bonus and decided that next year she would win some of the bonus money. which advantage of individual incentives does this illustrate?
Answer:
May motivate less productive employees to work harder.
Explanation:
When an employee is recognised and rewarded for exceptional performance, apart from boosting the moral of the employee it also challenges other employees to perform better on their jobs.
In this instance Anthony has been receiving bonuses for being a high perfomer. This time around he an extra large bonus for his performance.
Because of this Hannah gets motivated to also perform better at her job so she can also get a bonus.
Firms generally choose to finance temporary net operating working capital with short-term debt because Select one: a. Matching the maturities of assets and liabilities reduces risk. b. Short-term interest rates have traditionally been more stable than long-term interest rates. c. A firm that borrows heavily long-term is more apt to be unable to repay the debt than a firm that borrows heavily short-term. d. The yield curve has traditionally been downward sloping. e. Sales remain constant over the year, and financing requirements also remain constant
Answer:
a. Matching of assets and liabilities reduces risk
Explanation:
Working capital refers to the funds required by a firm to carry out it's routine and day to day operations. It is also expressed as,
[tex]Working\ Capital\ =\ Current Assets\ -\ Cuurent Liabilities[/tex]
Both current assets and current liabilities represent benfits and obligations with their respective durations being less than an year i.e short term.
When funding it's working capital requirements, a firm resorts to short term financing in the form of debt. The reason being, such funds are only required for short term i.e within an operating cycle.
Matching of assets and liabilities reduces liquidity risk in the sense that, when such short term debt matures and requires repayment, the short term assets financed by such debt also mature and the proceeds from such assets can be used to pay off such debt.
Secondly, the cost of short term debt, is usually lesser than the cost of availing long term debt since, debt issued for long term carries greater risk and thus requires higher interest rate as compensation.
Crowding out is a phenomenon: a where an increase in government's budget deficit causes the overall investment spending to fall. b where an increase in government spending causes an equal decrease in consumption spending. c where overproduction in the goods market leads to a sharp drop in the aggregate price level. d where an increase in imports causes the overall domestic production to fall. e where an increase in government's budget surplus decreases the overall investment spending.
Answer:
A. where an increase in government's budget deficit causes the overall investment spending to fall.
Explanation:
Crowding out is a situation in an economy that describes where consumption of goods and services falls and business investments are decreased/fall because government spending goes up and deficit financing takes up all available financial resources thereby causing interest rates to go up.
In other words increased government spending causes private sector spending to fall.
Answer:
A
Explanation:
Crowding out implies an increase in interest rate , less borrowing and less private investment as a result of government's budget deficit.
It is a phenomenon where an increase in government's budget deficit cause the overall investment to fall as it demands for borrowing to fund budget.
This can also be explained as when government's involvement in a particular sector of the market affects the other sector of the market.
Danube Corp. purchased a used machine for $ 16,000. The machine required installation costs of $ 6,000 and insurance while in transit of $ 800.
At which of the following amounts would the machine be recorded?
a) $16,000 b) $22,000 c) $16,800 d) $22,800
The country of Doomsville is currently in a recession. The government of Doomsville, in an effort to maintain its tax revenues in a time when incomes are falling, decides to increase the tax rate. Would this policy help or hurt the recession?
a) The policy would likely help Doomsville recover faster.b) The policy would likely make Doomsville’s recession worse.c) The policy would likely have no effect on Doomsville’s economy.d) The policy would have an unknown effect on Doomsville’s economy.
Answer:
Option "B" is the correct answer to the following answer.
Explanation:
It is generally considered appropriate to use higher policies such as fiscal expansion or monetary expansion to control the recession.
By continuously increasing the tax rate, the level of disposable income will be reduced considerably due to which the overall consumption level of the economy will also be reduced drastically, as a result of which this policy will make the situation of Doomsvile even worse, so option b is The correct answer.
Let's break it down into more technical terms, Demand work like this, it is the prices that the consumers are willing and able to purchase goods and services at, and that brings us to the law of demand which is that the demand and price can vary. Determinants of Demand is a shift that only occurs when one or more of the Determinants of Demand changes. Determinants have five major key points which are?
Answer:
-Income of buyers
-Consumer expectation
-Taste of consumers
-Price of the goods or services
-Price of related goods or services
Explanation:
Income of buyers: When there is a rise in income of buyer then demand would increase. Also when there is a fall in buyer's income, demand would decrease.
Consumer expectation: If consumers perceive that there would likely be an amount increase in price of certain commodities then demand for such commodities would increase now.
Taste of consumers: If the taste, preference or emotions of buyers changes in favour of a product then there would be increase in demand for such product and vice versa.
Price of the goods or services: The higher the price of a product, the lower the quantity demanded and the lower the price, the higher the quantity demanded.
Price of related goods or services: When there is an increase in the price of goods that are related, demand for the goods with lower price will increase
Consider the market for university economics professors. Suppose the opportunity cost of going to graduate school to get a Ph.D. in economics increases for many individuals. Suppose it generally takes about five years to get a Ph.D. in economics. Holding all else constant, in five years the equilibrium quantity of university economics professors will
a.
increase.
b.
decrease.
c.
not change.
d.
It is not possible to determine what will happen to the equilibrium quantity.
Answer:
B. Decrease
Explanation:
Base on the scenario been described in the question, when the P.HD in economics increase, it will in turn make the equilibrium wage to increase. The labor market, sometimes called as the job market, refers to the demand and supply for labor in which employers provide the demand and employees the supply
Firm X just paid $5/share dividend. We expect the dividend to grow annually at a constant rate 3%. The current stock price is $100. If firm X issues new equity, the new shares would sell at $98/share and the firm also needs to pay investment banks $3/share flotation cost. What is the cost of retained earnings? g
Answer:
Cost of Earnings = (Dividends per share for next year ÷ Current market value of the stock) + Dividend growth rate
= 8.42 %
Explanation:
See Attachment
As manager of release of information, you supervise an employee who has been a correspondence clerk for many years. Her performance has gradually diminished and has become substandard. What method would most likely prove to be ineffective in assisting this employee in improving her performance?
Answer:
The least likely method of assisting the correspondence clerk to improve her performance would be sanctions and threat of dismissal.
Explanation:
As manager who has supervised the clerk for many years and only recently noticed a drop in performance, sanctions and threat of dismissal would be the least effective method of improving her performance.
The drop in performance levels of the clerk might be due to different factors: it could be as a result of fatigue and burnout and she only needs a few weeks of vacation, it could be financial or family problems or work related stress.
The best way to assist the clerk is by talking to her and trying to find out if she has any underlying problems and see if they can be dealt with. Dialogue is very powerful as you can discover things that the employee would ordinarily not tell you about.
Threats of dismissal and sanctions would be counter productive because it will add to her growing list of problems, thereby increasing stress and severely limiting performance.
A college graduate in 1972 found a job paying $7,200. The CPI was 0.418 in 1972. A college graduate in 2005 found a job paying $30,000. The CPI was 1.68 in 2005. The 1972 graduate's job paid ______ in nominal terms and ______ in real terms than the 2005 graduate's job.
Answer:
D. Less; Less
Explanation:
Given that
CPI in 2005 = 1.68
Wage in 1972 = 7200
Wage in 2005 = 30,000
CPI in 1971 = 0.418
Therefore,
Real wage in 1972 = wage in 1972/CPI in 1972
= 7200/0.418
= $17,224.88
Real wage in 2005 = wage in 2005/CPI in 2005
= 30000/1.68
=$17,857.14
Thus, from the given data 1972 job paid LESS in nominal terms (7200 < 30000) and LESS in real terms (17,244.88 < 17,857.14) than the 2005 job.
Mason's business is making a profit, but he needs to increase his bottom line so that he can invest in his firm's growth. He decides to purchase a business intelligence software package to help him identify ways to grow his company. Which of the following questions could Mason's business intelligence software answer?A) Which of my competitors has the least debt?
B) Which countries would provide the least expensive production facilities?
C) Who are my top 10 revenue generating customers?
D) What new technologies will be available to increase my firm's productivity?
E) Which new markets would be the best for my firm to enter?
Answer:
C) Who are my top 10 revenue generating customers?
Explanation:
Business intelligence software is a type of application designed to retrieve, analyze, and report data for business intelligence to suppport decision making. It can provide information about a firm's internal functions and departments. It does not provide any information about any external processes or parties.
Pool Line is the manufacturer of a pool cleaning system that has been called by the pool construction industry, "the miracle we have waited a lifetime for." The cleaning system is very effective and recommended by all consumer magazines. The result is that 93 percent of all new pools have the system, and 94 percent of all pool owners buying replacement systems choose Pool Line. Pool Line's competitors have brought suit charging Pool Line with monopolization of the pool cleaning market. Pool Line: A) probably has a monopoly per se because of the 90 percent+ market share figures.B) probably has a valid defense of superior skill, foresight, and industry.C) will owe treble damages to the competitors.D) has probably obtained a monopoly illegally.
Answer:
B) probably has a valid defense of superior skill, foresight, and industry.
Explanation:
Pool Line's competitors bringing suit charging Pool Line with monopolization of the pool cleaning market means pool line probably has a valid defense of superior skill, foresight, and industry to be able to produce cleaning system that is very effective and recommended by all consumer magazines.
For all its similarities to a monopolist in the short run, the monopolistically competitive firm faces one huge problem that the monopolist does not in the long run: a) demand is downward sloping. b) other firms can enter the market. c) products are differentiated. d) other firms cannot enter the market.
Answer:
B) other firms can enter the market.
Explanation:
In a monopolistically competitive market, there are lots of suppliers that offer differentiated products to lots of consumers, e.g. restaurants. In a monopolistic market, only one supplier exists.
In a monopolistically competitive market the barriers of entry are low, and other competitors can continually enter the market, while it is very difficult for other competitors to enter a monopolist's market.
During a financial crisis in the early 2000s, the government of Argentina partially froze bank accounts for a year. Given the supply of saving and the demand to borrow functions, we would expect this action to cause the interest rate to:
A. decrease and borrowing to decrease.
B. decrease and borrowing to increase
C. increase and borrowing to decrease
D. increase and borrowing to increase.
Answer:
C
Explanation:
Given the supply of saving and the demand to borrow functions, we would expect interest rate to increase and borrowing to decrease.
As interest rate increases the cost of borrowing increases and is more expensive. At lower interest rates, the cost of investing decreases and the funds that are demanded for investment would increase. This government action cause a poor macroeconomic environment in Argentina. This would cause output in Argentina to fall, and a rise in unemployment. Income poverty will grow in Argentina.
Kimberly's Crown sells and designs jewelry. Despite the jewelry's popularity, products are available only through a few shopping stores across the country. When one of the stores complains that the jewelry they're being given is inferior to the jewelry Kimberly sells to other stores, Kimberly experiences ________ conflict. A. intensive B. vertical C. horizontal D. multitiered E. subjective
Answer:
B. vertical
Explanation:
Based on the scenario being described within the question it can be said that in this situation Kimberly experiences vertical conflict. This term refers to a type of conflict that occurs between two type of companies within the same industry/market. Such as in this case since the conflict is between Kimberly's store and a competing store within the same industry.
Vertical conflict is generally occurred at the time of disagreement on a certain case between two members on consecutive levels.
Hence, correct option is B.
Kimberly experiences vertical conflict.
Kimberly is experiencing vertical conflict in this position, according to the scenario mentioned in the question. This term refers to a disagreement between two types of businesses in the same industry or market. As in this situation, where the dispute is between Kimberly's store and a competitor in the same business.
To know more about Kimberly's Crown, refer to the link:
https://brainly.com/question/20107423
Which of the following is true of open-ended questions?a. These questions are designed to go beyond generalized fact finding and uncover prospects' perceptions and feelings regarding existing and desired circumstances and potential solutions. b. These questions limit the customer’s response to one or two words and are used to confirm or clarify information gleaned from responses to previous questions. c. These questions ask customers to choose from two or more options and are used in selling to discover customer preferences and move the purchase decision process forward. d. These questions are designed to let customers respond freely and encourage the customer’s thought processes. e. These questions are designed to penetrate below generalized or superficial information to elicit precise details for use in needs discovery and solution identification.
Answer:
a. These questions are designed to go beyond generalized fact finding and uncover prospects' perceptions and feelings regarding existing and desired circumstances and potential solutions.
Explanation:
In a situation where more information is obtained from the answers provided by people in their words compared to closed ended or multiple choice questions, it is termed open ended questions.
Open ended questions gives respondents the freedom to answer questions as they deemed fit but also requires them to provide useful information in order to achieve the purpose of the questions.
People make use of questionaires, multiple choice questions when conducting surveys but open ended questions can be used to get feedback from respondents on the questions they were asked previously and when the question being asked does not have response that fits in a category.
assey Corporation purchased a piece of land for $50,000. Massey paid attorney's fees of $5,000 and brokers' commissions of $4,000 in connection with the purchase. An old building on the land was torn down at a cost of $2,000, and proceeds from the scrap were $500. How much is the total cost of the land
Answer:
$60,500
Explanation:
The cost of the land to be recorded consist of the cost of the land itself and other associated cost with the purchase.
The amount realized as income in the process is deducted from the cost.
Cost of land
= $50,000 + $5,000 + $4,000 + $2,000 - $500
= $60,500
1. Assume the value of a market basket for a given year is $550 and the same basket in the base year was $500. Calculate the CPI. 2. If the CPI for a given year is 90 then the change in prices between that year and the base year is 3. Fill in the blanks in the chart below. Start with 2009 as the base year then recalculate with 2010 as the base year.
Answer:
current price of the CPI basket = $550
base year's price of CPI basket = $500
CPI = (cost of basket in current year / cost of basket in base year) x 100
1) the CPI for the current year = ($550 / $500) x 100 = 110
2) if the CPI decreased to 90, it means that the economy is suffering from deflation or the decrease in the general price level. It would take a 10% decrease in the price level (deflation) to reach a CPI of 90.
3)
nominal GDP real GDP GDP deflator
$100 billion $80 billion 125
$200 billion $100 billion 200
$240 billion $200 billion 120
$300 billion $200 billion 150
$100 billion $80 billion 125
The CPI is calculated by dividing the current year's market basket value by the base year's market basket value and multiplying by 100. A CPI of 90 indicates a 10% decrease in prices compared to the base year. To change the base year, the same calculation process is followed with the new base year's value.
Explanation:To calculate the Consumer Price Index (CPI) when the value of a market basket in a given year is $550 and the basket in the base year was $500, you divide the current year's basket value by the base year's basket value and multiply by 100. This gives you a CPI calculation of ($550/$500)*100, which equals 110. This index indicates that there has been a 10% increase in the price level since the base year.
When the CPI for a given year is 90, it means that prices are 10% lower compared to the base year since the CPI is less than 100. This represents deflation or a decrease in the general price level.
To recalibrate the index when changing the base year, you follow the same process using the new base year's basket value. Economists use a base year and a basket of goods and services as a reference to compute price changes over time. If we select 2010 as the new base year with an arbitrary value, we would recalculate the CPI for all other years relative to 2010's market basket value ensuring it has a CPI of 100.
Learn more about the Consumer Price Index (CPI) here:https://brainly.com/question/8416975
#SPJ3
Palmer corp is considering the purchase of a new piece of equipment. the cost savings from the equipment would result in an annual increase in net income after tax of "$100,000" . the equipment will have an initial cost of "$400,000" and have a "7" year life. if the salvage value of the equipment is estimated to be "$75,000" , what is the payback period
Answer:
4 years
Explanation:
Payback period is the time in which a project returns back the initial investment in the form of net cash flow.
Initial Investment = $400,000
Annual increase in net Income = $100,000
Payback period = Initial Investment / Annual increase in net income
Payback period = $400,000 / $100,000
Payback period = 4 years
The initial cost of $400,000 will be paid back in only 4 years time by the equipment.
Bella Vista Company enters into a contract to build custom equipment for ABC Carpet Company. The contract specified a delivery date of March 1. The equipment was not delivered until March 31. The contract required full payment of $75,000 30 days after delivery. The revenue for this contract should be:
Answer:
recognized on March 31 after the delivery of the equipment
Explanation:
Revenue is recognized once the recognition criteria is met. These criteria includes;
the cost of the item sold can be measured reliablythe items has been delivered or the service has been renderedGiven that the contract specified a delivery date of March 1.
The equipment was not delivered until March 31 and as such, the revenue for the contract should be recognized on March 31 after the delivery of the equipment.
An advertisement emphasizes that if a consumer uses a certain deodorant he or she will not offend other people and will not cause problems in the workplace because of bad body odor. What part of the Freudian system is this ad appealing to?
A) the id
B) the superego
C) the anti-ego
D) the ego
Answer:
B) The superego
Explanation:
As per Freud's personality theory, an individual's demeanor has many facets which are:
Id which are primitive instincts comprising of the inherent personality traits. It is that part of the personality which is unconscious and directly and instantly responds to needs, urges, wants and desires. This is also the part which defines aggression in a personality.Ego develops and serves as mediation between Id and the real world. Ego is responsible for finding out realistic and moral ways of satisfying the demands of the id, taking into account the social consequences.Superego: It controls the impulses of id which are unacceptable to society and turns ego towards moralistic conduct and to yearn for perfection.In the given case, the advertisement emphasizes upon not offending people at workplace by bad odor and thereby avoid problems. Thus, the advertisement appeals to the superego part of the Freudian system.
Suppose a perfectly competitive firm and industry is in long-run equilibrium and the firm earns an economic profit in the short run. Which of the following is likely to occur in the long run?
The market supply curve will shift to the right, and the market price will decrease.price exceeds average variable cost.an economic loss.
Answer:
The market supply curve will shift to the right, and the market price will decrease.
Explanation:
The economic profit attracts new firms in the market which increases the supply in the market so the price decreases and the quantity increases, the market firms will increases up to the economic profit equal to zero so in long run the firms earn zero economic profit.