The firms in a perfectly competitive industry

Reference no: EM13906255

"When the firms in a perfectly competitive industry are just able to cover their cost of production, economic profit is zero. Therefore, if demand falls, causing prices to go down even a little bit, all of the firms in the industry will immediately shutdown." True or false? Explain.

Reference no: EM13906255

Questions Cloud

Source code of the existing software : The development team of SoftSols Inc. analyzes the source code of the existing software and notes the following observations:

Determine the input power required at shaft 1 : Design a gear train which satisfies the above criteria. Use a sketch to illustrate your design, label the gears A, B, C, etc. from the driver to the driven gear, and state the number of teeth on each gear.

Compliance with generally accepted accounting principles : Lauren Corporation was formed two years ago to manufacture fitness equipment. it has been profitable and is growing rapidly. it currently has 150 shareholders and 90 employees; most of the employees own at least a few shares of Lauren's stock. Explai..

Internal network address to incorporate variable length sub : Change the internal network address to incorporate variable length subnet mask (VLSM) with EIGRP routing protocol. Set up all of the accountants on a separate VLAN. Create a VPN connection to allow accountants to access the accounting database from..

The firms in a perfectly competitive industry : "When the firms in a perfectly competitive industry are just able to cover their cost of production, economic profit is zero. Therefore, if demand falls, causing prices to go down even a little bit, all of the firms in the industry will immediately s..

Define assets-liabilities and equity : Define [a]assets, [b] liabilities, and [c] equity. Which financial statement is sometimes called the statement of financial position. During the year, Able Co. purchased $39,600 worth of supplies, at the end of the year, the balance sheet showed a ba..

Find pin dynamic forces and torque : Find: Pin dynamic forces and T (torque applied on link 2 ) to generate the required input velocity following requested output velocity of 25rpn Please note that for kinetic analysis

Indicate extent to which the payments are taxable income : Indicate the extent to which these payments are taxable income to Jeremy this year if Jeremy is (1) a cash-method taxpayer and (2) he is an accrual-method taxpayer.

Prepare comparative balance sheet : Williams Corp. balance sheet at the end of 2013 included the following items. Current Assets $235,000 Current liabilities $150,000 Land 30,000 Bonds payable 100,000 Buildings 120,000 Common Stock 180,000 Equipment 90,000 Retained Earnings 44,000 Accu..

User Account

All Pages