Ask Question
BusinessBusiness
14 September, 05:37

Assume the market for ball bearings is purely competitive. Currently, each of the firms in this market is earning positive economic profits. In the long run, as adjustments occur in the industry, we can expect the market price of ball bearings to a. increase and individual firms' profits to decreaseb. increase and individual firms' profits to increasec. decrease individual firms' profits to increased. decrease and individual firms' profits to decrease

+3
Answers (1)
  1. 14 September, 05:55
    0
    Answer: Given, the ball bearing market is purely competitive. Also at the current stage the firms in this market are earning positive economic profits.

    Therefore, in the long run as adjustments occur in the industry, we can expect the market price of ball bearings to decrease and individual firms' profits to decrease.

    This will take place as new firms will enter the market once they analyze that the existing firms are earning positive economic profits. Thus this will lead to decrease in price of ball bearing and further will lead to decrease in profit os a firm.

    Therefore, the correct option is (d)
Know the Answer?
Not Sure About the Answer?
Find an answer to your question ✅ “Assume the market for ball bearings is purely competitive. Currently, each of the firms in this market is earning positive economic ...” in 📘 Business if you're in doubt about the correctness of the answers or there's no answer, then try to use the smart search and find answers to the similar questions.
Search for Other Answers
You Might be Interested in
Recall the components of internal control. identify the internal control weakness in this situation, and propose a way to correct it. the internal control weakness is that the ▼ controller compares the deposit slip to the amount posted.
Answers (1)
Which of the following statements regarding special journals is not true? a. Special journals provide a specialized format for recording similar transactions. b. Special journals are periodically summarized and posted to the general ledger. c.
Answers (1)
Which accounts are affected in the closing process under a perpetual inventory system?
Answers (1)
A customer of Landen Consulting Company makes a $400 payment of cash on a bill for services provided last month. Record this transaction into the accounting equation of Landen Consulting by: (Check all that apply.)
Answers (1)
Following is information from Pinto Corporation for 2017. Total 2017 revenue $1,033,290 Total revenue growth rate 4% Terminal revenue growth rate 1% Net operating profit margin (NOPM) 5.3% Net operating asset turnover (NOAT) 2.
Answers (1)
New Questions in Business
According to the case, the digital tabloid market is at which stage of the product life cycle?
Answers (1)
Which tab in the Group Policy Results window shows all events in Event Viewer that are generated by group policies, and can be used to view the relevant information on a remote computer?
Answers (1)
The Backwoods American company operates a telephone order system for a catalogue of its outdoor clothing prod- ucts. The catalogue orders are processed in three stages.
Answers (1)
Using notes outside of given key to produce heightened color is referred to as A. Orchestration B. Chromatisicm C. pallete work D. Tonality
Answers (2)
Which of the following are not excludable as an employee fringe benefit? a. Public transportation costs of $130 per month provided by the employer b. Employee deductions of $4,200 for dependent childcare expenses c.
Answers (2)
Home » Business » Assume the market for ball bearings is purely competitive. Currently, each of the firms in this market is earning positive economic profits. In the long run, as adjustments occur in the industry, we can expect the market price of ball bearings to a.
Sign Up Forgot Password?