listory Bookmarks Profiles Tab Window Help zoom i1 0 4 2 Q 8. Mon Nov 27 10:56 AM D2L X + nillanlearning.com/sac/9822078#/9822078/11/0 Question 12 of 16 - A6 - Ch 14-15 ssessments.macmillanlearning.c... Assignment Score: 52.8% Resources [x Give Up ? Feedback Try Again Question 12 of 16 Attempt 1 R Entry, Exit, and Long Run Profitability - End of Chapter Problem You run a profitable business that provides accounting services to other businesses in your home town. When you opened your firm, there were very few competitors in the market, but you have recently learned that several new firms providing similar Macmillan Learning services will be entering the market soon. a. Consider how your firm will be impacted by rival firms entering the market. Move the demand curve on the graph to illustrate the impact on your firm. Price ( $ ) Demand NOV 27 O zoom FI 20 F3 968 F4 - F5 -2. F6 44 F7 F9 F10 % 8 O 3 5 6 P E R T Y U O D F G H K Attempt 1 b. New firms entering the market will reduce - your market power, and your customers will become less Incorrect Macmillan Learning price sensitive. c. Suppose instead that most firms in this market are experiencing negative economic profits. Move the demand curve on the graph to illustrate the impact on your firm. Demand NOV 27 zoom 20 F3 886 FA F5 - F6 14 F7 F8 F9 F10 4) F17 k w# 6 8 O E R T Y U O P F G H K C V Attempt 1 Macmillan Learning 7% Incorrect As a result of rival firms entering the market, your annual revenue becomes $300,000 and your annual out-of-pocket expenses become $270,000. d. Based on this information, economic profit e. Based on this information, accounting profit Incorrect Incorrect 0% NOV 27 O zoom 9 F2 20 F3 868 F4 . F5 -2- F6 4 F7 II FB F10 % w# A LA 6 8 O E R T Y U O P D F G H K C V B N. M