Why do firms exit unprofitable industries?
Question:
Why do firms exit unprofitable industries?
Fantastic news! We've Found the answer you've been seeking!
Step by Step Answer:
Answer rating: 55% (9 reviews)
Unprofitable industries generate lower ra...View the full answer
Answered By
Michael Mulupi
I am honest,hardworking, and determined writer
4.70+
72+ Reviews
157+ Question Solved
Related Book For
Question Posted:
Students also viewed these Business questions
-
The exit of firms from an unprofitable industry will ______. a. Shift the market supply curve left b. Cause the market price to rise c. Increase the economic profits of the firms that remain d. Do...
-
Why might firms in industries with high fixed costs be inclined to prevent strikes or end strikes quickly?
-
Why do firms measure profit? Why do regulated firms care about the level of profit?
-
An employee earns $22 per hour and 11/2 times that rate for all hours in excess of 40 hours per week. Assume that the employee worked 50 hours during the week, and that the gross pay prior to the...
-
The New Horizon Pension Fund decides to hedge its $40 million stock portfolio on June 1. The portfolio has a beta of 1.10. It will use Nasdaq futures contracts selling at 1,571 to hedge. These...
-
Montcalm Corp. has current liabilities of $365,000, a quick ratio of 0.85, inventory turnover of 5.8, and a current ratio of 1.4. What is the cost of goods sold for the company?
-
Earth's magnetic field is thought to be generated by currents in the planet's core. In what direction (clockwise or counterclockwise, when viewed along the rotation axis from north to south) does...
-
After graduating from college with your MBA, you decide to take your grandma's secret cinnamon roll recipe and open up a bakery. You grew up devouring your grandma's rolls, and you have convinced her...
-
1. 120g of an organic compound that contains only carbon and hydrogen gives 330g of CO2 and 270g of water on complete combustion. The percentage of carbon and hydrogen, respectively are (a) 25 and 75...
-
Without profits or losses to guide him, how would a central planner know which industries to expand and which industries to contract?
-
How is the profit-maximizing output quantity determined?
-
Exercises 3150 contain rational equations with variables in denominators. For each equation, a. Write the value or values of the variable that make a denominator zero. These are the restrictions on...
-
Why should group matching be avoided? Solve What are the main factors a researcher should keep in mind when using an F test to determine the tenability of the assumption =prior to using a t statistic...
-
On January 1, the Hanover Beverage Company replaced the palletizing machine on one of its juice lines. The cost of the machine was $195,000. The machine's expected life is five years or 480,000...
-
Sarah and Albert each invested $10,000 in an index-linked principal-protected (PPN) note on the same underlying index. Sarah' PPN had 75% participation rate. Albert's note had a 50% performance cap....
-
Alveva is an online beauty subscription service that sends subscribers a monthly box of four to seven curated make-up and beauty products. Alvevas monthly subscription service allows consumers to...
-
The Race Track: Betting is closed. We have $1, 000 bet on horse A, $2, 000 on horse B, and $3, 000 on horse C. Compute the odds the track will post in order to take 10% no matter which horse wins. If...
-
Which of the following statements suggest a positive analysis and which a normative analysis? a) If the United States lifts the prohibition on imports of Cuban cigars, the price of cigars will fall....
-
Give an example of transitory income. What effect does this income have on the marginal propensity to consume?
-
Refer to Table 12.3 below. Suppose the price of wheat falls to $5.50 per bushel. How many bushels of wheat will Farmer Parker produce, and how much profit will he make? Briefly explain. (1) Quantity...
-
Refer to Table 12.3 below. Suppose the price of wheat falls to $5.50 per bushel. How many bushels of wheat will Farmer Parker produce, and how much profit will he make? Briefly explain. (1) Quantity...
-
Refer to Table 12.3 below. Suppose that the marginal cost of wheat is $0.50 higher for every bushel of wheat produced. For example, the marginal cost of producing the eighth bushel of wheat is now...
-
Problem One Safety Systems reconciled its book balance of cash with its bank statement balance on April 30 and showed two cheques outstanding at that time, #1771 for $781 and #1780 for $1,325.90. The...
-
Astro World issues $20 million in bonds on January 1, 2024 that pay interest semiannually on June 30 and December 31. A portion of the bond amortization schedule appears below: (4) Increase in (1)...
-
Steelcase Inc. is one of the largest manufacturers of office furniture in the United States. In Grand Rapids, Michigan, it produces filing cabinets in two departments: Fabrication and Assembly....
Study smarter with the SolutionInn App