Business, 24.03.2020 06:23 sophie5064

Suppose that the price of corn, a crop produced in a perfectly (or purely) competitive industry, increased 208% last year as demand for corn based ethanol fuel increased. What do you expect to happen in the long run for the corn industry given this recent success?

The price per bushel of corn will continue to increase, yielding higher profits.
Thus more firms will enter the market indefinitely.
Profits will become negative due to over farming, which will result in the corn farming industry going under.
Profits will be equal to zero. None of the above.

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Answer from: gigitorres5803

Profits will be equal to zero

Explanation:

Since we are dealing with a perfectly competitive market, which has no barriers to entry and exit, profits are only incurred in the short run not in the long run.

This occurs because super normal profits which are made in the short run will attract a lot of competitor firms, and since the customers have "perfect information",they will not mind switching from seller to seller, trying to beat prices down and get a better bargain. Hence, this presence of competitors will cause the price of corn to fall in the long run.

Thus, the high inflow of competition that will happen to the corn industry will cause the profits to be equal to zero in the long run.

Answer from: Quest

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Answer from: Quest

Via: "if you are found to be supplying or dealing drugs, the punishment is likely to be tough. supplying drugs doesn’t just apply to dealers. if police suspect that you intend to share drugs with your friends, this is still considered to be supplying.

being suspected of supplying drugs means you are much more likely to be charged. the amount of drugs found on you, and whether you have a criminal record, will be taken into account when a punishment is being decided.

decisions to prosecute are taken by the public prosecution service. the maximum sentences for intent to supply drugs are:

- up to life in prison or an unlimited fine (or both) for a class a drug- up to 14 years in prison or an unlimited fine (or both) for a class b or class c drug."sorry if this was a school question, you didnt supply options so i assumed it was a personal question, which if it is, reconsider selling or having possesion of any drugs at all. i wish you the best!

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