Question 13 (5 points) Assuming that the economy is in a recession, then under fixed exchange rates, the government could speed up the adjustment: O by revaluing the nominal exchange rate provided the markets were surprised O by devaluing the nominal exchange rate provided that markets were informed in advance O by adopting a restrictive fiscal policy to improve market confidence O by devaluing the nominal exchange rate provided that markets were not informed in advance
Answers
Under fixed exchange rates, the government cannot use monetary policy to stimulate the economy, since it is constrained by the need to maintain the exchange rate peg.
Therefore, the only option available to speed up the adjustment is to change the nominal exchange rate.
If the government wants to boost exports and improve the trade balance, it can devalue the nominal exchange rate. This makes domestic goods cheaper for foreign buyers, which should increase demand for them and boost exports. However, devaluation also makes imports more expensive, which can lead to higher inflation.
If the government wants to reduce imports and protect domestic industries, it can revalue the nominal exchange rate. This makes imports cheaper and exports more expensive, which should discourage imports and boost exports. However, revaluation also makes exports more expensive, which can reduce demand for them.
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Related Questions
A small business earns a profit of $6500 in January and $17,500 in May. What is the rate of change in profit for this time period? Explain.
Answers
The rate of change in profit for this period is 169.23%.
What is the rate of change?The rate of change shows the ratio or proportionality by which a value changes in relation to another.
We can determine the rate of change by dividing the difference in value by the former value and multiplying the quotient by 100.
Profit earned in January = $6,500
Profit earned in May = $17,500
Change in profit = $11,000 ($17,500 - $6,500)
Rate of change = 169.23% ($11,000/$6,500 x 100)
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Calculate the manufacturing cycle time for the order. (Round answer to 0 decimal places, e.g. 25.) Manufacturing Cycle Time enter the manufacturing cycle time in days days
Answers
Manufacturing cycle time is the total duration required for producing a product from start to finish. To calculate it, determine the start and end times, calculate the total time, convert it to days, and round the answer to 0 decimal places.
To calculate the manufacturing cycle time for an order, determine the start and end times, calculate the total time, convert it to days, and round the answer to 0 decimal places.
The manufacturing cycle time is the total time required to produce a product, from the start of the production process to its completion. To calculate the manufacturing cycle time for an order, you need to consider the various stages involved in the manufacturing process.
Here is a step-by-step example to calculate the manufacturing cycle time:
1. Determine the start time: This is the time when the manufacturing process begins for the order.
2. Determine the end time: This is the time when the manufacturing process is completed for the order.
3. Calculate the total time: Subtract the start time from the end time to get the total time taken to complete the manufacturing process.
4. Convert the total time into days: If the total time is given in hours, minutes, or seconds, divide it by the number of hours, minutes, or seconds in a day to get the manufacturing cycle time in days.
5. Round the answer: Round the manufacturing cycle time to 0 decimal places as required.
For example, if the start time is 9:00 AM and the end time is 4:00 PM on the same day, the total time is 7 hours. Dividing 7 hours by 24 hours in a day gives a manufacturing cycle time of approximately 0.29 days. Rounded to 0 decimal places, the manufacturing cycle time for this order would be 0 days.
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What is the straight time pay for each of the following for a 40 hour week
Answers
Tim Horton wants to raise funds to open a branch of their coffee shop in Trinidad. To raise the funds, Tim Horton would sell bonds 100 $1,000 par value with a coupon interest rate of 6%. The bonds would mature in 15 years and interest would be paid semi-annually. The required rate of return is expected to be 8%.
Requirement:
a) Calculate the value of one bond
b) What is the total amount Tim Horton would raise if all bonds were sold?
Answers
Answer:
a) The value of one bond is $837.08.
b) The total amount Tim Horton would raise if all bonds were sold is $83,708.
Explanation:
a) Calculate the value of one bond
This can be calculated as follows:
Annual coupon = Bond face value * Coupon interest rate = $1,000 * 6% = $60
Annual coupon discount factor = ((1 - (1 / (1 + r))^n) / r) .......... (1)
Where;
r = required semi-annual rate of return = required annual rate of return / number of semi-annual in a year = 8% / 2 = 0.08 / 2 = 0.04
n = number of semi-annuals = number of years * number of semi-annual in a year = 15 * 2 = 30
Substituting the values into equation (1), we have:
Semi-annual coupon discount factor = ((1-(1/(1 + 0.04))^30) / 0.04) = 17.2920333006645
Present value of coupon = ((Annual coupon / number of semi-annual in a year) * Semi-annual coupon discount factor) = (($60 / 2) * 17.2920333006645 = $528.76
Present value of the face value of the bond = Face value of the bond / (1 + r)^n = ($1,000 / (1 + 0.04)^30 = $308.32
Therefore, we have:
Bond value = Present value of coupon + Present value of the face value of the bond = $528.76 + $308.32 = $837.08
Therefore, the value of one bond is $837.08.
b) What is the total amount Tim Horton would raise if all bonds were sold?
Number of bonds expected to be sold = 100
Value of one bond = $837.08
Total amount that would be raised = Number of bonds expected to be sold * Value of one bond = 100 * $837.08 = $83,708
Therefore, the total amount Tim Horton would raise if all bonds were sold is $83,708.
Which technology do online stores usually use to present customized content?
Online stores usually use __
technology to present customized content.
Answers
Answer:
real time analytics
Explanation:
2. A company determines that the cost, in dollars, of producing x items is given by C(x) = 15x + 0.07x". [5] a. Determine the marginal cost function. b. Find the marginal cost at a production level
Answers
a. The marginal cost function is MC(x) = 15 + 0.14x. b. The marginal cost of producing 100 items is 29 dollars.
To find the marginal cost function and the marginal cost at a production level, we'll first need to determine the derivative of the cost function, C(x) = 15x + 0.07x^2.
a. Determine the marginal cost function:
To find the derivative, we'll apply the power rule: d/dx (x^n) = nx^(n-1).
For the term 15x, the derivative is 15(1)x^(1-1) = 15.
For the term 0.07x^2, the derivative is 2(0.07)x^(2-1) = 0.14x.
Thus, the marginal cost function is MC(x) = 15 + 0.14x.
b. Find the marginal cost at a production level:
To find the marginal cost at a specific production level, plug the value of x (number of items produced) into the marginal cost function. Let's say you want to find the marginal cost at a production level of 100 items. Plug x = 100 into the marginal cost function:
MC(100) = 15 + 0.14(100) = 15 + 14 = 29 dollars.
So, the marginal cost of producing 100 items is 29 dollars.
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how Is productivity determined?
a.by measuring The relationship to inputs and outputs
b. by comparing the profitability of competing markets
c. by measuring the relationship between supply and demand
d. by comparing the number of hours worked by all employees
Answers
Answer:
a. by measuring The relationship to inputs and outputs
Explanation:
Productivity shows the efficiency of generating output using the available inputs. It is measured by dividing the output of a company or a production line by the inputs used. Therefore, productivity shows the relationship between inputs and outputs.
Productivity can also be measured by labor output. In this case, the output is divided by the number of labor hours used.
Monopolist is producing good Y. The market demand for good Y is described by function y = 720 – 6Py , where y denotes the quantity of good Y demanded and Py denotes the price of good Y in euros. The total costs of this monopolist are described by the cost function C(y)=20y+5000, where y denotes the quantity of good Y produced. 1. Find the profit maximizing quantity of output Y* for this monopolist (assuming that price discrimination is not possible).
Answers
The profit-maximizing quantity of output Y* is 60.
The profit-maximizing quantity of output Y* for this monopolist (assuming that price discrimination is not possible) can be obtained as follows:
Given that,
Market demand for good Y: y = 720 – 6Py
Total cost of this monopolist: C(y) = 20y + 5000
The total revenue of the monopolist can be obtained as:
P * Q = (720 - 6P) * Q = 720Q - 6PQ
Thus, The monopolist’s profit function can be represented as follows:
Π = TR - TC
Total revenue: TR = P * Q
= (720 - 6P) * Q
= 720Q - 6PQ
Total cost: TC = 20Q + 5000
Therefore, the profit function becomes:
Π = TR - TC
= (720Q - 6PQ) - (20Q + 5000)
Simplifying and rearranging, we get:
Π = (720 - 6P)Q - 5000
Let’s take the derivative of Π with respect to Q and equate it to zero to find the profit-maximizing quantity of output Y*.dΠ/dQ = (720 - 6P) - 0dΠ/dQ
= 720 - 6P
= 0
Thus, 720 = 6P or P = 120.
So, the profit-maximizing quantity of output Y* for this monopolist (assuming that price discrimination is not possible) is:
720 - 6Py = Q720 - 6(120) * Q
= Q720 - 720Q
= 6PQ720Q
= 6PQ720
= 6PQ/Q
Taking the value of P = 120, we get:
720 = 6 * 120 * Q/QQ
= 60
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T/F? The required rate of return is determined by (1) the real risk free rate, (2) the expected rate of inflation and (3) liquidity risk.
Answers
The given statement “The required rate of return is determined by (1) the real risk free rate, (2) the expected rate of inflation and (3) liquidity risk” is true /false because state reason here is true.
The required rate of return is the minimum rate of return an investor expects to earn on an investment, taking into account the different factors that influence the market. The real risk-free rate represents the interest rate on a risk-free security in a zero-inflation environment.
The expected rate of inflation is the anticipated rate at which prices of goods and services will increase over time. Liquidity risk refers to the potential difficulty in converting an investment into cash quickly without a significant loss in value. These factors collectively help determine the required rate of return for an investment.
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Critical Thinking:
8. Seventeen year old Kara, who is also black, wants a laptop computer of her own. She goes to Best Buy to purchase a new laptop with part of the money she saved from her part-time job. The laptop cost $1,100. Kara offers to put down $400 and make monthly payments through the store’s credit plan. Because Kara is only 17, the manager of the store refuses to sell her the laptop and asks her to return with her parents to possibly work out a deal.
1) Is this fair to Kara? Explain.
2) Is this discriminatory or illegal? Explain.
a.
3) What concerns might the manager have about selling a computer to Kara? (2)
a.
b.
Answers
Answer:
1) It may not be fair to Kara,but since many teenagers are ill-responsible, it may be best to work out deals with their parents, rather than a child. Since she is supposed to be making monthly payments, that may mean that she forgets, or doesn't do so. By having a parent there, Kara and the manager can ensure that there is understandment about the product that is being sold.
2) Kara is under 18, which means that a salesperson does not have to sell her a product if they feel it is not fit for them. So no, it is not illegal or discriminatory to her race, but perhaps to her age group..
3) a. The manager may be worried that Kara is not mature or old enough to have the responsibilities that come with paying a month-to-month rate.
b.The manager also may be worried that Kara took the money from her parents to secretly buy the computer, rather than buying the computer with her own money.
I hope this helps & Good Luck!
employers today will probably ask you to submit your résumé in any of following formats except as a
Answers
Employers today will probably ask you to submit your résumé in any of the following formats except as a handwritten document.
In today's digital age, employers typically expect résumés to be submitted in a format that is easy to review, store, and share electronically. Handwritten documents are generally not preferred as they can be difficult to read, scan, or distribute digitally.
The most common formats for submitting résumés include:
1. Word processing documents (e.g., Microsoft Word, PDF): These formats allow for easy customization, formatting, and sharing while preserving the content and layout of the résumé.
2. Text documents (e.g., plain text, ASCII): These formats strip away formatting and focus solely on the textual content. They are commonly used when submitting résumés through online forms or when requested specifically by an employer.
3. Online platforms or applicant tracking systems (ATS): Many employers have online portals or ATS systems where applicants can upload their résumés directly. These systems often have specific formatting requirements or allow you to input information into predefined fields.
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The four-firm concentration ratio is the percentage of ________ accounted for by ________ in an industry.
Answers
The four-firm concentration ratio equals the percentage of the value of sales accounted for by the four largest firms in the industry.
What is an industry?An industry is referred as an economic area where an economic activity like manufacturing and production of goods takes place with the help of raw materials and machinery equipment and assemble to distribute in the market.
The four-firm ratio is frequently used as a benchmark for a market's competitive structure. It is equal to the share of the industry's total sales value that the top four companies account for.
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How strong are the competitive forces confronting Papa John’s in the pizza segment of the quick serve restaurant industry? Do a five-forces analysis to support your answer.
What does your strategic group map of the pizza segment of the quick serve restaurant industry look like? Is Papa John well positioned? Why or why not?
What do you see as the key success factors in the pizza segment of the quick serve restaurant industry?
What does a SWOT analysis reveal about the overall attractiveness of Papa John’s situation?
What are the primary components of Papa John’s value chain?
By the end of 2013, Papa John’s International (Papa John’s) was poised to celebrate its 30th anniversary in the pizza business, having begun as a $1,600 investment in a pizza oven in the back of a tavern in Jeffersonville, Indiana. Over the years, the company had expanded to over 4,400 establishments in all 50 US states and in 34 countries, of which 84 percent were franchises. Corporate revenues reached $1.4 billion and profits increased to $69.5 million in 2013.
Over the most recent four-year period, Papa John’s corporate revenues had grown at an annual compound rate (CAGR) of nearly 8 percent, fueled by growth in international franchise fees (17 percent CAGR) and international restaurant and commissary sales (24 percent). Earnings per common share (undiluted) had also grown at impressive 13 percent on a compound annual growth basis. The company’s stated objective was to add an additional 1,000 units over the next five years, via franchising agreements (95 percent of all new units) and expansion into international markets (70 percent of all new units).
Papa John’s and its peers benefitted from a challenging economy because of the relative value of pizzas versus other food categories. Papa John’s had grown its market share due to the quality of its ingredients, as consumers became more health conscious. The company had significant growth opportunities in international markets, given that it had about 1,000 restaurants outside the U.S. and Canada. Papa John’s franchise business model reduced the impact of rising commodity costs and price discounting because the company generated a significant percentage of its operating profits from royalties and fees, which were not affected by franchisees’ operating margins. Papa John’s enjoyed higher contributions from international revenues, which had wider margins than domestic revenues.
Papa John’s nevertheless faced considerable challenges. Rivals commanded a 94 percent share of the $43 billion worldwide pizza market. Papa John’s remained a distant third behind the top two chains, Pizza Hut (12 percent share) and Domino’s (10 percent). Little Caesars, the number-four pizza chain, held a 5 percent share and appeared poised to catch up to and possible overtake Papa John’s. Other external trends might impact Papa John’s future growth trajectory and competitive position, including: increasing consumer health and diet awareness, the growing use of technology in the industry (e.g. social media, on-line ordering via mobile apps), unstable prices for raw materials and ingredients, as well as political and economic instability in the countries where Papa John’s was operating or sought to expand operations.
What are the key elements of Papa John’s strategy?
Which one of the five generic competitive strategies discussed in Chapter 5 most closely approximates the competitive approach that Papa John’s is employing?
Based on careful examination of the data in case Exhibit 1, how would you assess Papa John’s financial and operating performance?
What 3–4 top priority issues does Papa John’s management need to address?
What recommendations would you make to Papa John’s management team? At a minimum, your recommendations should cover what to do about each of the top priority issues identified in question 9.
Answers
The competitive forces confronting Papa John’s in the pizza segment of the quick serve restaurant industry are strong.
How to explain the informationThe threat of new entrants is high, as the pizza industry is relatively easy to enter and there are a number of small, regional pizza chains that could expand into new markets. The bargaining power of buyers is also high, as consumers have a wide variety of pizza options to choose from. The threat of substitutes is also high, as there are a number of other food options that consumers could choose instead of pizza.
The strategic group map below shows the different strategic groups in the pizza segment of the quick serve restaurant industry. The strategic groups are based on the following factors:
PriceQualityDeliveryMarketingPapa John’s is well positioned in the pizza segment of the quick serve restaurant industry. The company has a strong brand, a good product, and a strong marketing program. However, the company faces some challenges, including strong competition from Pizza Hut and Domino’s, rising costs, and a changing consumer landscape.
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Blueroot Inc. is considering a change in its financing policy. Currently, it uses maximum trade credit by not taking discounts on its purchases. The standard industry credit terms offered by all its suppliers are 2/10 net 30 days, and the firm pays on time. The new CFO is considering borrowing from its bank, using short-term notes payable, and then taking discounts. The firm wants to determine the effect of this policy change on its net income. Its net purchases are $11,760 per day, using a 365-day year. The interest rate on the notes payable is 10%, and the tax rate is 40%. If the firm implements the plan, what is the expected change in net income?
Answers
Answer:
net income should increase by $38,448
Explanation:
net purchases per day = $11,760
net purchases x 20 days = $11,760 × 20 = $235,200
interest expense = $235,200 × 10% = $23,520
the gross amount purchased during the 20 day period:
= (net purchases × 365) ÷ (1 - discount rate) = ($11,760 × 365 days) ÷ (1 - 0.02) = $4,292,400 / 98% = $4,380,000
lost discounts = $4,380,000 × 2% = $87,600
the after tax change in net income = ($87,600 - $23,520) × (1 - 40%) = $64,080 × 60% = $38,448
2. True or False: Envelope budgeting means that you have to deal with only cash and physical envelopes. Explain your answer.
Answers
Answer: True
Explanation: Because envelope generally we used to store the cash in physical mode itself
A marketing strategy that involves a firm using different marketing mix activities to help consumers perceive the product as being different and better than competing products is referred to as __________.
a. product repositioning
b. points of difference
c. product positioning
d. product differentiation
e. market differentiation
Answers
Answer:
It is referred to as product differentiation.
Explanation:
Product differentiation is a strategic type of marketing in which a firm uses campaigns and promotions to highlight features that make its product unique as well as the benefits of using the product or service.
This kind of marketing differentiate the firm's product or services from those of competitors and makes consumer perceive such differentiated product or service as better than other similar competing products.
Explanation:
You will have $ in 20 years if you set aside $2,000 at 8%. (Use the future value tables from Chapter 5.)
Answers
In 20 years you'll have $5,220.
2,000×0.08=160
2,000+(160×20)= 5,220.
The total interest will be $3200 (160X20) at an interest rate of 8%. You'll have $5,220 after 20 years.
What is the interest rate?The amount of interest due each period expressed as a percentage of the amount lent, saved, or borrowed is known as an interest rate (called the principal sum). The total interest on a loaned or borrowed sum is determined by the principal amount, the interest rate, the frequency of compounding, and the period of time the loan, deposit, or borrowing took place.
The rate calculated over a year is the annual interest rate. However, they are typically annualized. Various interest rates are applicable over shorter time frames, such as a day or a month.
A key tool of monetary policy, interest rate goals are taken into consideration when addressing issues like investment, inflation, and unemployment. When a nation wants to boost consumption and investment in the economy, its central bank typically lowers interest rates.
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A market ____ analyst studies prevailing market trends and forecasts potential sales for a product.?
Answers
Explanation:
A market ____ analyst studies prevailing market trends and forecasts potential sales for a product.?
select the correct answer.
The United States and France both produce sweaters and caps. Suppose that a US worker can produce 50 caps
per hour or 1 sweater per hour
and a French worker can produce 40 caps per hour and: sweaters per hour. Based on this scenarlo, which statement is true?
O A. The United States has a comparative advantage producing caps.
O B. France has a comparative advantage producing caps.
O c. The United States has a comparative advantage producing sweaters.
O D. Nelther country has a comparative advantage producing elther good.
Answers
O D. Nelther country has a comparative advantage producing elther good.
Market research is used to gather information needed to make a business
Answers
Answer:
Yvonne observe ochre oxen
A student participates in a month-long sleep study designed to examine free-running circadian rhythms. if all time cues are removed, the student's total sleep-wake cycle is likely to
Answers
The reason for this is because without any external time cues, the body's internal clock is allowed to run on its own natural rhythm, which is slightly longer than 24 hours. This means that each day, the student's internal clock will shift slightly later, making it difficult for them to maintain a consistent sleep-wake schedule.
If a student participates in a month-long sleep study designed to examine free-running circadian rhythms, their sleep-wake cycle is likely to be longer than 24 hours if all time cues are removed. Over time, this can result in significant disruptions to their sleep and wake times, which can lead to feelings of fatigue, difficulty concentrating, and other negative consequences. Overall, it is important for researchers and individuals to understand the impact of time cues on our internal clocks in order to better manage our sleep and wake cycles and maintain optimal health and well-being.
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a government minister in country X recently said: "the secondary sector of the industry will always be more important than the tertiary sector to our economy." do you agree with this view? justify your answer.
Answers
Answer:
Explanations yes i agree with this view since raw material are must for every sector. If there is no product, then service sector will have no work.
tertiary sector provide services for primary and secondary sector also secondary sector depent on pramiry sectorfor the input
look at your expenses: What are the needs and what are the wants?
Answers
Needs and wants are essentially the little different things.
What are wants and needs?The necessities of daily life, such as food, clothing, and sleep, are what we consider to be necessities because without them, we cannot survive. In contrast, wants are the things that we desire occasionally. desire or want for items that enhance quality of life, such as a fancy car, a sofa set, a dining table, etc.
Need is defined as a requirement for survival and function. A desire is something that can improve your quality of life. According to these standards, a need entails access to food, clothing, shelter, and healthcare, whereas a want entails everything else.
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each year, pedro, a sales manager for a candy company, attends the candy confectioners convention where he attends workshops on techniques for selling candies and sweets. the workshops are examples of
Answers
The complete statement is "Each year, Pedro, a sales manager for a candy company, attends the Candy Confectioners Convention where he attends workshops on techniques for selling candies and sweets. The workshops are examples of off-the-job L&D" option A
What is sales management?Generally, The field of sales management is a subfield of business administration that focuses on the management of a company's sales activities as well as the use of various sales strategies in real-world situations.
Because most commercial enterprises are driven by their net sales, which are generated via the sale of items and services, this function of the firm is quite significant.
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CQ
1.Each year, Pedro, a sales manager for a candy company, attends the Candy Confectioners Convention where he attends workshops on techniques for selling candies and sweets. The workshops are examples of
Multiple Choice
on-the-job L&D.
L&D for facts.
off-the-job L&D.
onboarding.
Suppose that business travelers and vacationers have the following demand for airline
tickets from Los Angeles to San Francisco:
Price
$150
$200
$250
$300
Quantity Demanded
(business travelers)
35,000
30,000
26,000
20,000
Quantity Demanded
(vacationers)
25,000
21,000
14,500
11,000
1. As the price of tickets rises from $200 to $250, what is the price elasticity for both
(a) business travelers and (b) vacationers ?
2. Why might vacationers have a different elasticity than business travelers?
3. What would be the Exact Quantity Demanded and change in Total Revenue if the
Airlines Change the Price for Business Travelers from $200 to $230?
Answers
1. A company is creating a new product and must determine how to effectively create the product as well as appeal to the market and target a wide range of customers.
Answers
Answer and Explanation:
One good way to know how to effectively create a product and also target quite a wide range of consumers is to watch out for trends. Through the internet and social media, a producer can tell what product consumers would be ready to buy at a certain period due to the fact that it is what is trending at that time. The producer could go ahead to add new features to the product to make it stand out for potential customers.
.
The information regarding the new product should be explained in the explanation part.
The following information should be considered:
There is one good way for knowing how to effectively develop a product and also there is a wide range of consumers is to watch out for trends.By using the internet and social media, a producer can tell what product consumers would be ready to purchase at a specific period.Learn more: https://brainly.com/question/25300841?referrer=searchResults
Along with heavily armed U.S. soldiers and marines, who supported overthrowing Hawaii's Queen Lydia Kamakaeha Liliuokalani in 1893?
Group of answer choices
Politician William Jennings Bryan
Quaker missionaries
the Indigenous peoples of the Hawaiian islands
American commercial interests
Answers
American commercial interests, along with a group of armed U.S. soldiers and marines, supported the overthrow of Hawaii's Queen Lydia Kamakaeha Liliuokalani in 1893.
American commercial interests supported overthrowing Hawaii's Queen Lydia Kamakaeha Liliuokalani in 1893, along with heavily armed U.S. soldiers and marines.
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13. Ceteris paribus, a decrease in the demand for loanable funds A. drives the interest rate down.
B. drives the interest rate up.
C. might not have any effect on interest rates.
D. results from an increase in business prospects and a decrease in the level of savings. E. results from an
Answers
Interest rates are always lowered when demand falls, regardless of the circumstances. The demand for funds would rise if business prospects improved. The savings rate influences the finances rather than the sales for them. As a result, option (A) is the best choice.
How much variables contribute to a decrease in the source of loanable funds?
When consumers start spending more, they put less money in the bank. This results in fewer depositors and reserves that the government can lend out, reducing the availability of loanable funds.
What effect can the ceteris paribus assertion have on a demand curve?
Because it considers elasticity, the ceteris paribus assertion has an impact on a quantity demanded. If the price of an item rises whereas all other factors remain constant, the demand for it will fall.
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In most transactions, the buyer is accepting the condition of the property at what point in time:_________
a. At closing
b. At the signing of the contract
c. 30 days after closing
d. At the time of the first viewing
Answers
Answer:
b. At the signing of the contract
Explanation:
A contract can be defined as an agreement between two or more parties (group of people) which gives rise to a mutual legal obligation or enforceable by law.
Mutual assent is a legal term which represents an agreement by both parties to a contract. When two parties to a contract both have an understanding of the parameters, terms and conditions surrounding a contract, it ultimately implies that they are in agreement; this is generally referred to as mutual assent and it is at this point they (buyer and seller) sign the contract. Therefore, mutual assent connotes agreement, acceptance and consent to a contract by both parties.
Hence, in most transactions, the buyer is accepting the condition of the property at the signing of the contract as an approval or consent to the terms and conditions.
with the aid of industry and individual producer graphs explain how the long run equilibrium in perfect market will be achieved when an economic loss was made in the short run
Answers
In a perfectly competitive market, the long-run equilibrium is achieved through the process of entry and exit of firms. When an economic loss is incurred by individual producers in the short run, it signals an imbalance between the market price and the average total cost of production.
When individual producers experience economic losses, some firms will choose to exit the market in the long run. This exit occurs because firms are unable to cover their costs and generate profits. As a result, the supply in the market decreases, shifting the supply curve to the left. The reduction in supply leads to a decrease in the quantity of goods or services available in the market, which in turn puts upward pressure on prices.
As prices rise, the remaining producers who were able to operate at a lower cost may start to earn economic profits. This attracts new firms to enter the market, anticipating the opportunity to make profits. The entry of new firms increases the supply in the market, shifting the supply curve to the right.
The increased supply eventually leads to a decrease in prices, as competition intensifies among producers. This process continues until a long-run equilibrium is reached, where the market price equals the average total cost of production for each firm.
Graphically, this adjustment is represented by the shifting of the supply curve to the left in the short run due to firm exits, followed by a subsequent shift to the right in the long run due to new firm entries. The new long-run equilibrium occurs at the intersection of the demand and supply curves, where price equals average total cost, ensuring that firms earn zero economic profit.
Overall, the long-run equilibrium in a perfect market is achieved through the exit and entry of firms in response to economic losses or profits, respectively, leading to price adjustments and the restoration of equilibrium.
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