Long-run profit-perfectly competitive market

Reference no: EM1371518

For Profit Labs, Inc. (FPL) is a private laboratory that does only routine blood count. With total assets of $8 million last year, FPL took in $3 million in revenue and had expenses of $2 million. The average firms in other industries make a return of only 10 percent on their assets.

The market for lab services is potentially competitive, but right now there are only a few firms in the industry. However, laboratory technicians are free to enter the industry if they wish. Firms in the industry charge around $300 for blood counts, and techs' charge about $20. What do you expect will happen in the long run?

Reference no: EM1371518

Questions Cloud

Find the type of profit sharing plan : Find the type of profit sharing plan that involves the firm's distribution of total annual profits each year among employees, based on their merit rating?

Describe what security threats in installing wireless lan : Write a two- page letter to describe what security threats she is facing and how she can decraese these threats. Remember that you are writing for friend, not for a teacher.

Illustrate what is break-explain graphically : it can sell its output for $25 each. Illustrate what is break-Explain how your work both graphically and algebraically.

What is the highest point he reaches above the water : Find out the velocity with which he strikes the water. (Hint: When the diver reaches the water, his displacement is y = -3 m (measured from the board), assuming that the downward direction is chosen as the negative direction.)

Long-run profit-perfectly competitive market : For Profit Labs, Inc. (FPL) is a private laboratory that does only routine blood count. With total assets of $8 million last year, FPL took in $3 million in revenue and had expenses of $2 million. The average firms in other industries make a retur..

Bypass the wholesaler : What caution would you voice on this matter, and what type of information would you gather before making this decision?

Explain sandy believes her employer has breached : Explain Sandy believes her employer has breached the employment agreement and she should be paid for the two weeks between jobs. Is she right

What will be the number of beats heard per second : Andy, age 16, lacks self-discipline, fails to plan ahead, and is rapidly frustrated by challenging tasks. He is nervous and overly critical of others. Make use of the psychoanalytic, humanistic and social-cognitive perspectives to give three contr..

Identify five activities you do to enhance production : Identify five activities you do to enhance production (but not counted as cost of production at moment) which should actually be counted as part of your implicit cost.

User Account

All Pages