Respuesta :
Answer:
C. average total cost.
C. zero economic profits.
If demand shifts to the left (decreases), the last firm that entered "earns negative economic profits and so exits the market".
Explanation:
When many firms produces same product with different cost structures, their average total cost of unit cost is used to determining which firms enter the market first because by definition, average total cost or unit cost is equal to total cost divided by the number of units of a goods manufactured by the producer. It is also equal to the sum of average variable costs and average fixed costs. It may be time dependent. So, the lesser the cost of production per unit quantity, the higher the volume produced and the fasters the product enters market.
The last firm to enter earns "zero economic profits" because obviously, the market must have been fully saturated with the products and as at the time the products enters, the satisfaction might have been dropping and people may not buy as before. Other reason for zero economic profits is that such firm products will surely have higher unit cost which will eventually translate to higher price of the products and no one will leave cheaper products of same quality and satisfaction for the one higher price.
If demand shifts to the left (decreases), the last firm that entered "earns negative economic profits and so exits the market" - there are many reasons for a decreasing demands ranging from diminishing satisfaction derived from the products, and so on, the last firm will definitely suffered negative economic profits because the capital involved in cost of production will not even be recovered not to even talk of the profits from the business and this in turn weaken the manufactured from producing more of the products since the goal is not achieved and the products exit market.
When we Consider a market where there are many firms with different cost structures. When we are determining which firms enter the market first, then we look at the average total cost.
After that, The last firm to enter earns Zero economic profits.
Now the last statement in the question If demand shifts to the left (decreases), the last firm that entered "earns negative economic profits then exits the market".
What are Demand shifts?
When many firms produce the same product with different cost structures, their average total cost of cost is employed to determine which firms enter the market first because, by definition, average total cost or cost is capable of total cost divided by the number of units of goods manufactured by the producer. it's also up to the sum of average variable costs and average fixed costs. it's going to be time-dependent. So, the lesser the value of production per unit quantity, the upper the degree produced, and also the fasters the merchandise enters the market.
The last firm to enter earns "zero economic profits" because obviously, the market must be fully saturated with the products, and as at the time the products enter, the satisfaction may need been dropping and folks might not buy as before. Another reason for zero economic profits is that such firm products will surely have a higher cost which can eventually translate to higher price of the products and also nobody will leave cheaper products of the same quality and also when satisfaction for the one higher price.
If demand shifts to the left (decreases), then the last firm that entered "earns negative economic profits and also then exits the market" - there are many reasons for decreasing demands starting from diminishing satisfaction derived from the products, and so on, the last firm will certainly suffer negative economic profits because the capital involved in the cost of production won't even be recovered to not even verbalize the profits from the business and this successively weaken the manufactured from producing more of the products since the goal isn't achieved and also the products exit market.
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https://brainly.com/question/14537411
