Home / Questions / . A firm in a purely competitive industry has a typical cost structure. The normal rate of
. A firm in a purely competitive industry has a typical cost structure. The normal rate of profit in the economy is 5 percent. This firm is earning $5.50 on every $50 invested by its founders. What is its percentage rate of return? Is the firm earning an economic profit? If so, how large? Will this industry see entry or exit? What will be the rate of return earned by firms in this industry once the industry reaches long-run equilibrium?
2. A firm in a purely competitive industry is currently producing 1,000 units per day at a total cost of $450. If the firm produced 800 units per day, its total cost would be $300, and if it produced 500 units per day, its total cost would be $275. What are the firm’s ATC per unit at these three levels of production? If every firm in this industry has the same cost structure, is the industry in long-run competitive equilibrium? From what you know about these firms’ cost structures, what is the highest possible price per unit that could exist as the market price in long-run equilibrium? If that price ends up being the market price and if the normal rate of profit is 10 percent, then how big will each firm’s accounting profit per unit be?
Dec 05 2019 Read more Less More
Find the equation of motion for a system shown below when (i) ? =1 (ii) ? = 0.3 (iii) ? = 2.0, if the mass m is displaced by a distance of 3 cm and released. >
Jun 20 2020You must evaluate the purchase of a proposed spectrometer for the R&D department. The base price is $300,000, and it would cost another $75,000 to modify the equipment fo...
Aug 17 2020A satellite single-axis attitude control system can be represented by the block diagram in Figure 1. The variables k, a, and b are controller parameters, and J is the spa...
Jun 13 2020A hurricane destroyed the work in process inventory of Biloxi Corporation. At that time, the company was in the process of manufacturing two custom jobs (B325 and Q428). ...
Jun 06 2018(Extension of problem 2) You are still an employee of University Consultants, Ltd. The investor tells you she would also like to know how tax considerations affect your i...
Mar 29 2020Shivani Sondhi has been assigned the task of planning a strategy to enhance creativity in her organization. Which of the following would be the best suggestion for Ms. S...
Mar 06 2018A hair dryer is basically a duct in which a few layers of electric resistors are placed. A small fan pulls the air in and forces it to flow over the resistors where it is...
Jul 22 2020You have been engaged to audit the financial statements of Solamente Corporation for the fiscal year ended May 31, 2005. You discover that on June 1, 2004, Mika Company h...
Jul 16 2020Javier and Anita Sanchez purchased a home on January 1 of year 1 for $500,000 by paying $50,000 down and borrowing the remaining $450,000 with a 7 percent loan secured by...
Dec 04 2019The BCD equivalent of decimal number 32.94 is (a)0011 0010 . 1001 0100 (b)1011 0010 . 1001 0100 (c)0011 0010 . 1001 0010 (d)100010 . 1001 0100 (e)0010 0010 . 1001 0010
Jan 06 2018Welcome to MyCourseHelp Services, World's leading Academic solutions provider with Millions of Happy Students.