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There are 300 purely competitive farms in the local dairy market. Of the 300 dairy farms 298 have a cost structure that generates profits of 24 for every 300 invested.?
Wiki User
∙ 8y ago
- What is the percentage rate of return for these 298 dairies=10%
- The other two dairies have a cost structure that generates profits of $22 for every $200 invested. What is their percentage rate of return?= 11%
- Assuming that the normal rate of profit in the economy is 10 percent, and firms cannotcopy each other's technology, will there be entry or exit? = Exit.
- Will the change in the number of firms affect the two that earn $22 for every $200 invested? = No
- What will be the rate of return earned by most firms in the industry in long-run equilibrium? = 10%
- If firms cancopy each other's technology, what will be the rate of return eventually earned by all firms? = 10%
Wiki User
∙ 8y ago
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Profits encourage entry into purely competitive industries and losses encourage exit from purely competitive industries because?
When profits are zero, the firm is earning sufficient revenue to cover the opportunity cost.
An increase in sales and profits generates the necessary cash required for economic growth?
An increase in sales and profits does not necessarily mean an economy will grow. The economy will only grow if the sales and profits are substantial in size.
Which statements is true about profits in a monopolistically competitive market?
many firms will earn profits in the short term, but they must constantly innovate and compete to earn profits in the long term
In general monopolistically competitive frims earn profits?
The general monopolistically competitive firm does earn profit. They earn point about as much as oligopolies.
What is meant your curse of competitive markets?
It is hard to find profitable project.High profits in product market attract competitors.competitors put downward pressure on prices and profits.
What does competitive advantage mean and what is one means of identifying?
A competitive advantage is something that allows one company to outperform competitors. One way to identify a competitive advantage is comparing profits. If one competitor has higher average profits, then it has some kind of competitive advantage.
Why reports must be made to investors?
They invested money and want to know how you used it and profits from it.
Profits encourage entry into purely competitive industries and losses encourage exit from purely competitive industries because?
When profits are zero, the firm is earning sufficient revenue to cover the opportunity cost.
Ben and Jerry are partners. Ben invested 36,000 and Jerry invested 44,000. They agreed to split the first years profits in the same proportion as their initial investment. What part of their 109,700 profits would each person receive?
Ben - 39,492 Jerry - 48,268
An increase in sales and profits generates the necessary cash required for economic growth?
An increase in sales and profits does not necessarily mean an economy will grow. The economy will only grow if the sales and profits are substantial in size.
Which statements is true about profits in a monopolistically competitive market?
many firms will earn profits in the short term, but they must constantly innovate and compete to earn profits in the long term
In general monopolistically competitive frims earn profits?
The general monopolistically competitive firm does earn profit. They earn point about as much as oligopolies.
What is a revenue model?
Describes how the firm will earn revenue, generate profits, and produce a superior return on invested capital
Explain why a monopolist must lower its quantity relative to a competitive market to maximize its profits?
A monopolist must lower its quantity relative to a competitive market to maximize its profits because the monopolist already controls and owns the largest share of the market.
Which professional sports league profits the most?
The National Football League generates about $980 million a year in revenue.
What is meant your curse of competitive markets?
It is hard to find profitable project.High profits in product market attract competitors.competitors put downward pressure on prices and profits.
What of the forces of the business environment involves the rivalry among businesses for customers and profits?
The competitive dimension
