In a perfectly competitive market, the process of entry and exit will end when (i) accounting profits are zero. (ii) economic profits are zero. (iii) price equals minimum marginal cost. (iv) price equals minimum average total cost.

(ii) economic profits are zero

Explanation:

A perfect competition is characterised 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.

I hope my answer helps you

Related Questions

Unland Company uses a periodic inventory system. Details for the inventory account for the month of January 2017 are as follows: Units Per unit price Total
Balance, 1/1/2017 290 \$5.00 \$1450
Purchase, 1/15/2017 140 ..5.10 714
Purchase, 1/28/2017 140 ..5.30 742

An end of the month (1/31/2017) inventory showed that 230 units were on hand. If the company uses LIFO, what is the value of the ending inventory?

Ending inventory= \$1706

Explanation:

Giving the following information:

Units Per unit price Total

1/1/2017: 290 *\$5.00=  \$1450

1/15/2017: Purchase,  140*\$5.10= \$714

1/28/2017: Purchase,  140*\$5.30= \$742

At the end of the month (1/31/2017) inventory showed that 230 units. If the company uses LIFO (last-in, first-out)

Ending inventory= 140*5.30+140*5.10+50*5= \$1706

How can strategic leaders be successful in an industry like the airlines industry

Strategic leaders can help any airline related issue to be solved

Explanation:

Strategic leaders are needed everywhere. An airline company would indeed benefit from a strategic leader and or manager

. A rise in the price of corn will cause a (Click to select) in the Supply Curve for corn. b. A decrease in the price of seed (an input to corn) will cause a (Click to select) in the Supply Curve for corn. c. A decrease in the local number of grocery stores will cause a (Click to select) in the Supply Curve for corn.

move along upwards

shift out

shift in

Explanation:

A change in price of a good leads to a movement along the supply curve and not a shift of the supply curve.

Other factors other than a change in the price of the good would lead to a shift of the supply curve. Such factors include :

1. A change in the price of input
2. A change in the number of suppliers
3. Government regulations

When the price of corn increases, the quantity supplied of corn increases. this is in line with the law of supply.

according to the law of supply, the higher the price, the higher the quantity supplied and the lower the price, the lower the quantity supplied.

This would lead to a movement up along the supply curve

If the price of seed which is an input to corn decreases, it becomes cheaper to produce corn. As a result, the supply of corn would increase. this would lead to an outward shift of the supply curve.

If the number of grocery stores decreases, there would be a reduction in supply. As a result, the supply curve would shift inwards

What role should government play in a free market economy?

Economists, however, identify six major functions of governments in market economies. Governments provide the legal and social framework, maintain competition, provide public goods and services, redistribute income, correct for externalities, and stabilize the economy.

Answer: Stabilize the economy

Explanation:

Ten years ago, Hailey invested \$2,100 and locked in an annual interest rate of 8 percent for 30 years (ending 20 years from now). Aidan can make a 20-year investment today and lock in an interest rate of 9 percent. How much money should he invest now in order to have the same amount of money in 20 years as Hailey? (

\$3,770.53

Explanation:

Given data;

Amount Hailey invested = \$2,100

annual interest rate = 8 Percent for 30 years ending 20 years from now

Aidan can make an investment for 20 years at 9 percent.

To determine how much money Aidan should invest in order to have the same amount of money in 20 years as Hailey =

First, is to determine how much Hailey will have 20 years from now:

FV20 = PV -10 × (1 + i)³⁰

FV20 = \$2,100 × (1 + 0.08)³⁰

= \$2,100 × 10.06266

= \$21,131.59

Therefore, Aidan will have to deposit:

PV = FV20 ÷ (1 + i)N

PV = \$21,131.59 ÷ (1 + 0.09)²⁰

= \$21,131.59 ÷ 5.60441

= \$3,770.53

Changes in real GDP reflect Group of answer choices only changes in prices. only changes in the amounts being produced. both changes in prices and changes in the amounts being produced. neither changes in prices nor changes in the amounts being produced.

Only changes in the amounts being produced  is the correct answer to this question.

Explanation:

Real GDP is the value of goods and services at base year prices so real GDP changes reflect changes in the amounts produced in the economy.

Effective gross domestic product ( GDP) is an inflation-adjusted indicator representing the cost of the goods and economic resources by a nation in a given year (demonstrated in foundation-year prices) and is often referred to as "current prices," "corrected deflation," or "constant currency" GDP.