further from center has 10,100 shares of common stock outstanding at a price of $35 per share. it also has 210 shares of preferred stock outstanding at a price of $86 per share. there are 510 bonds outstanding that have a coupon rate of 5.4 percent paid semiannually. the bonds mature in 16 years, have a face value of $1,000, and sell at 92.5 percent of par. what is the capital structure weight of the preferred stock?\

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Answer 1

0.0214 is the capital structure weight of the preferred stock.

The total value of:

Equity=(10100*35)=$353500

Preferred stock=210*86=$18060

Bonds=510*(1000*92.5%)=$471750

Total value=353500+18060+471750

=$843310

Hence weight of preferred stock=18060/843310

=0.0214(Approx)

Capital structure refers to the combination of diverse types of outside funds, known as capital, used to finance a enterprise. It consists of shareholders' fairness, debt, and desired stock, and is designated in the employer's stability sheet.

Capital structure refers to the specific mix of debt and fairness used to finance an organization's property and operations. From a company attitude, equity represents a extra luxurious, permanent source of capital with extra-economic flexibility.

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Related Questions

Mass selling is Multiple Choice the high-quantity sales of unique products based upon the needs and wants of individual consumers. the production and sales of a single item that contains no variation of product benefits. the opposite of customized interaction, meaning a single message is delivered to the whole group of prospective buyers. the use of different images (such as on the cover of Sports Illustrated) to create a more intimate relationship between buyer and seller. the translation of a company's message into multiple languages for use in advertising in different countries or regions.

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Mass selling is  the opposite of customized interaction, meaning a single message is delivered to the whole group of prospective buyers. (Option C).

What is Mass Selling?

Mass marketing, usually referred to as selling, seeks to contact as many people as possible by ignoring the distinctions between market segments and appealing to the entire market with a single offer or plan.

Because of this, companies like Crest and Colgate use mass marketing to promote their products through TV commercials, print ads, and other platforms including social media and outdoor billboards.

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q5 separating equilibria 4 points grading comment: consider a separating equilibrium in the signaling model where education is not productive. q5.11 point grading comment: the type l workers get the efficient amount of education. choice 1 of 2:true choice 2 of 2:false

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q5 separating equilibria 4 points grading comment: consider a separating equilibrium in the signaling model where education is not productive. q5.11 point grading comment: the type l workers get the efficient amount of education. True

Monetary equilibrium is a condition or nation in which financial forces are balanced. In impact, financial variables stay unchanged from their equilibrium values in the absence of external influences. financial equilibrium is also known as market equilibrium.

Financial market equilibrium takes place whilst supply and calls for degrees align, creating ideal market conditions for shoppers and dealers. The kinds of economic equilibrium consist of microeconomic and macroeconomic. In microeconomics, supply and demand between shoppers and dealers are balanced.

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69. Cardio, Inc., makes and sells Drawdown, the most prescribed name-brand heart medication. Emitate Corporation has the potential to make a generic version of the same drug. Cardio pays Emitate not to sell v product. This is most likely 2. a deal that neither restrains trade or harms competition. b. a legal restraint of trade. c. a per se violation of the Sherman Act. d. subject to analysis under the rule of reason.

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Based on business analysis and the situation described above when Cardio pays Emitate not to sell v product, this is most likely c. a per se violation of the Sherman Act

What is Sherman Act?

Sherman Act is the United States Act on business regulations that prohibit the producers or sellers from having contracts, or agreements that unreasonably restrain interstate and foreign trade including a price-fixing agreement.

Generally, the Sherman Act forbids many things to protect the interest of American citizens whether producers or consumers.

The Sherman Acts forbids the following:competitors to fix prices, rig bids, allocate customers, etc.

In this case, it is believed that when Cardio pays Emitate not to sell v product, this is a per se violation of the Sherman Act.

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satchel loses his job and immediately begins looking for another. other things the same, the unemployment rate

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The number of persons who are eager, able, and actively looking for work but haven't found any is referred to as unemployment. The percentage of people who are working or actively looking for employment in an economy is known as the labor force participation rate. The fact that Satchel is still looking for employment implies that he is now unemployed even though he lost his job. Satchel did not retire or get demotivated and give up on working in the future. Before he can find another job, this raises the unemployment rate.

Who defines "unemployment"?

When someone who is actively looking for work is unable to find employment, they are said to be unemployed. The rate of unemployment is frequently used to gauge the state of the economy.

What is the rate of unemployment?

The number of jobless persons as a percentage of the labor force, according to the OECD, Eurostat, and the US Bureau of Labor Statistics, is what is known as the unemployment rate.

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Satchel loses his job and starts hunting for a new one right away. The labor force participation rate remains unchanged, and the unemployment rate rises.

What connection exists between the labor force and the unemployment rate?

The percentage of workers in the labor force who do not currently have a job but are actively seeking one is measured by the unemployment rate. This statistic excludes people who have not sought for job in the last four weeks. There are numerous factors that originate from both the supply side, or the worker, and the demand side, or the employer, that contribute to unemployment. High interest rates, the world economy being in a recession, and the financial crisis might all affect demand. Frictional unemployment and structural employment are major supply-side contributors.

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the sales of a grocery store had an average of $8,000 per day. the store introduced several advertising campaigns in order to increase sales. to determine whether or not the advertising campaigns have been effective in increasing sales, a sample of 64 days of sales was selected. it was found that the average was $8,300 per day. from past information, it is known that the standard deviation of the population is $1,200.

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From past information, it is known that the standard deviation of the population is $1,200. The correct null hypothesis for this problem is  μ </ 8000.

Describe null hypothesis and provide an example?

According to the null hypothesis, any variation between the selected features you observe in a collection of data is the result of chance. Any discrepancy between the average profits in the data and zero, for instance, is the result of chance if the expected earnings for the gambling game are actually equal to zero.

The null hypothesis can be established in what way?

The conventional method for testing a null hypothesis is to choose a statistic based on a fixed-size sample, determine the statistic's value for the sample, and only reject the null hypothesis if and only if the statistic falls within the critical range.

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Evan incurred education-related expenditures related to his self-employment job. Under which of the following circumstances will Evan NOT be allowed to deduct these expenditures as a BUSINESS expense?
The course or courses meet the requirements necessary to keep his job.
The course or courses only improve Evan's skills in his existing business.
The course or courses qualify Evan for a new trade or business.

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Evan incurred education-related expenditures related to his self-employment job. The course qualifies Evan for a new trade or business will Evan NOT be allowed to deduct these expenditures as a BUSINESS expense.

Business expense

Business expenses are costs incurred in the course of doing business. They may be used by both small and large organizations. The income statement includes business expenses. To calculate a company's taxable net income, business expenses are subtracted from revenue on the income statement.

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TRUE/FALSE if the proceeds from the sale of a plant asset exceed its book value a gain on disposal occurs

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Not entirely sure if this is what its asking for but if you made a profit on the plant or not depends on how much you spent to care for the plant.

For example, if you bought it for $50, gave it $10 of water, and sold it for $70 you would profit $10.

If you bought it for $50, gave it $50 dollars of water and sold it for $90, you would lose $10.

as long as the ads are not overly intrusive, most users opt to play free versions of games with ads over paid versions that do not have ads.

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As long as the advertisements are not overly intrusive, most users opt to play free versions of online games with ads over paid versions that do not have ads under digital marketing. This statement is true.

What are online games?

Playing a video game online via means of internet browser or data services on electronic devices while connected to the internet, typically with other individuals.

Online games can be played on a variety of platforms, including PCs, laptops, and mobile phones, as well as specialized gaming consoles like PlayStations and Nintendo Switches.

Now a days for a digital marketing concept, online gaming is the best platform to launch and advertise the quality of products, gather the attention of potential customers.

Thus if free versions have less interruption due to advertisements paid versions of games will not be opted more.

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suppose you can choose between two lifetime income paths: (a) an option that gives you a constant stream of $100,000 every year of your productive life, (b) an option that pays you an average of $100,000 per year, but that begins at $50,000 and gradually increases until it ends at $150,000. based on evidence how adaptation affects happiness, which of the following would be true?

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Based on evidence of how adaptation affects happiness, it is likely that option (b) would bring more happiness in the long-term.

While $100,000 per year is a comfortable income for most people, the gradual increase of the income in option (b) provides an additional source of happiness as it allows for a sense of progress and achievement.

Additionally, the initial lower income of option (b) allows for a greater appreciation of the eventual higher incomes, as the increase in income would be perceived as an improvement over the initial income.

As such, the overall sense of accomplishment and progress provided by the gradual increase in income throughout life would likely bring more happiness in the long-term.

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Fuzzy Button Clothing Company is considering a one-year project that requires an initial investment of $600,000; however, in raising this capital, Fuzzy Button will incur an additional flotation cost of 5%. At the end of the year, the project is expected to produce a cash inflow of $900,000. The rate of return that Fuzzy Button expects to earn on the project after its flotation costs are taken into account is _________.

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The rate of return that Fuzzy Button expects to earn on the project after its flotation costs are taken into account is 42.86%.

What is the rate of return?

The rate of return is the net gain or loss (which is the total cash inflow minus the total cash outflow) of an investment over a stated period.

The rate of return is expressed as a percentage of the investment's initial cost.

To compute the rate of return, divide the net gain or loss by the initial investment and multiply the quotient by 100.

Initial investment = $600,000

Flotation cost = $30,000 ($600,000 x 5%)

Total costs = $630,000 ($600,000 + $30,000)

Estimated cash inflow = $900,000

Returns (net gain) = $270,000 ($900,000 - $630,000)

Rate of return = 42.86% ($270,000/$630,000 x 100)

Thus, Fuzzy Button's rate of return for this one-year investment is 42.86%.

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Xerox sells to different customers in different sales situations. In order to capture customer commitment, Xerox salespeople must determine what steps in the ______ process are appropriate.

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Xerox sells  to different customers in different sales situations. In order to capture customer commitment, Xerox salespeople must determine what steps in the Selling process are appropriate.

What is the Selling process?

The selling process starts with presale preparation, identification of prospects and making a sales presentation in which a salesperson tries to convince a customer that the specific product or service can satisfy his needs.

A salesperson tries to evaluate the brand and product positively in response to the current need of the customer and market.

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Which of the following statements is true about strategic leadership?
a. It is the primary responsibility of the functional managers of an organization.
b. It does not take into account the task of maximizing shareholder value.
c. It is involved with taking decisions regarding how to create a competitive advantage.
d. It is a concept that does not apply to multidivisional companies that have several business units.
e. It is essentially about supervising workers at a manufacturing unit of an organization

Answers

It is involved with taking decisions regarding how to create a competitive advantage is true about leadership.

Which definition of leadership is accurate?

"The process of exercising control over a team or organization." Leadership is described in that manner by the Oxford Dictionary. Leadership, put simply, is about taking chances and questioning the status quo. Leaders inspire followers to take new and improved actions.

Why does leadership matter?

Because it inspires, motivates, and sets an example for others, leadership is crucial in achieving positive changes in the world. Leaders create a vision, offer a strategy, and cultivate trusting relationships with their followers. As a result, they lead groups of people to collaborate on amazing feats.

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If a company uses the direct write-off method of accounting for bad debts,
a. It is applying the matching principle.
b. It will record bad debt expense only when an account is determined to be uncollectible.
c. It will reduce the accounts receivable account at the end of the accounting period for estimated uncollectible accounts.
d. It will report accounts receivable in the balance sheet at their net realizable value.

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If a company uses the direct write-off method of accounting for bad debts It will record bad debt expense only when an account is determined to be uncollectible.

The obligation to pay money or other agreed value to a third party, a creditor, is called a debt. Debt differs from an immediate purchase in that payments are deferred or in installments. A sovereign state or country, city government, company or individual may be liable for the debt.

Contractual provisions governing the amount and timing of principal and interest payments typically apply to commercial debt. Debt includes mortgages, bonds, notes, and loans. In contrast to equity, debt is a form of financial transaction in financial accounting. The phrase can also be used figuratively to refer to tasks of a moral nature and other relationships that do not require the exchange of money.

Hence the correct option is C.

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assuming the law of one price, explain what the exchange rate between u.s. dollars and yen has to be if the price of steel in japan is 15,000 yen per ton and the price in the u.s. is $125 per ton (assume no transaction costs).

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The law of one price states that when prices are expressed in a common currency, identical goods sold in different locations must sell for the same price in the absence of trade frictions and under conditions of free competition and price flexibility.

Given the steel prices in each country, the exchange rate must be 120 yen to the US dollar. As a result, steel prices in each country are equal. If this were not the case, steel buyers would have an incentive to buy in the country where steel was cheaper, while steel producers would have an incentive to sell in the country where steel was more expensive.

The price in the relatively cheaper country would rise due to increased demand and decreased supply. Increased supply and decreased demand in the relatively more expensive country would lower the price there. This process would be repeated until the prices in both countries were equal.

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true or false: brands are sold either under a common/family name or as an individual brand.

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Brands are sold either under a common/family name or as an individual brand True.

A family brand quillet: What is it?

Branding a family. several products with the same trademark. Likewise known as umbrella branding.

Which two forms of brand ownership methods are the most common?

Manufacturer brand and retailer/store brand are the two fundamental types of brand ownership methods. Give examples of each of the ownership strategies for those two brands to illustrate the differences. Any business in the supply chain, including producers, wholesalers, and retailers, has the ability to own brands.

A brand quizlet: what is it?

a name, phrase, logo, or other distinguishing mark that identifies a company or organization, its goods, or sets it apart from rivals.

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Which of the following is an example of incidental damages you might be awarded if you are wrongfully terminated from your job?a. the costs of mailing resumes to prospective employersb. the costs of cosmetic surgeryc. the costs of psychological counselingd. the costs of a new wardrobe for future interviews

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An example of incidental damages you might be awarded if you are wrongfully terminated from your job is the costs of mailing resumes to prospective employers.


Incidental damages- Incidental damages are expenses incurred by the non-breaching party to avoid other direct and consequential losses resulting from the breach.

The following types of damages are possible:

1] Ordinary damages. 2] Special damages. 3] Vindictive or Exemplary damages. 4] Nominal damages. 5] Damages for Deterioration caused by Delay. 6] pre-fixed damages.

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Customers of a ________ buy most of the store's products in larger-than-normal packages and quantities.

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Customers of a warehouse club buy most of the store's products in larger-than-normal packages and quantities.

What are the main warehouse activities?

An appealing option for both bargain hunters and small business owners, warehouse clubs are retail establishments that often offer a wide range of products and allow clients to purchase big, wholesale quantities of the things they sell. With the help of warehousing, you may store, ship, and distribute your products from a single place.

You can track and manage your inventory effectively as a result of this. It can also lower your staffing demands, boost your flexibility, and lower your transportation expenditures. Putting away products, moving objects inside or between warehouses, and choosing items for assembly, production, or transportation are all common warehouse chores. Other warehouse activities include putting together inventory or goods for sale, although they are described elsewhere.

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Comfi Airways, Inc., a small two-plane passenger airline, has asked for your assistance in some basic analysis of its operations. Both planes seat 10 passengers each, and they fly commuters from Comfi�s base airport to the major city in the state, Metropolis. Each month 40 round-trip flights are made. Shown below is a recent month�s activity in the form of a cost-volume-profit income statement. Fare revenues (400 fares) $46,500
Variable costs Fuel $16,315 Snacks and drinks 770 Landing fees 1,800 Supplies and forms 1,110 19,995
Contribution margin 26,505
Fixed costs Depreciation 2,940 Salaries 14,196 Advertising 420 Airport hanger fees 1,710 19,266
Net income $7,239

Answers

variable cost Breakeven Point

(1) USD = $33,800

(2) Number of Tariffs = 290.75 or 291

Description:

(1) Total Fixed Cost = USD (4) Breakeven Point = 44 Contribution Margin

Breakeven (USD) = $19,266 / (26,505 / $46,500)

Breakeven (USD) = $19,266 / 57%

Breakeven USD = $33,800

(2) Breakeven for a series of fares is calculated as Number of Tariffs = $19,266 / (26,505 / 400)

Breakeven Point of Number of Tariffs = $19,266 / 66 .2625

Breakeven Point of the Number of Tariffs = 290.75 or 291

Variable costs are costs that vary with changes in quantity. Examples of variable costs include raw materials, parts labor, production materials, handling charges, shipping charges, packaging materials, and credit card fees. In some fiscal documents, the variable cost of production is called the "cost of goods sold."

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annuities are more attractive for people who expect to live only a short time.

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False. Annuities are not more attractive for people who expect to live only a short time.

What are annuities?

The purpose of an annuity, a long-term investment provided by an insurance company, is to lessen your chance of outliving your income. Your purchase payments (what you give) are transformed into recurring payments that may last a lifetime through annuitization.

A predetermined sum of money that you will receive annually for the rest of your life is called an annuity. An annuity is a contract that you have with an insurance provider that calls for regular payments to be made by the insurer to you, either now or in the future.

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Annuities are more attractive for people who expect to live only a short time. T or F

Junk bonds are high-risk, high-yield debt instruments. They are often used to finance leveraged buyouts and mergers, and to provide financing to companies of questionable financial strength. True/False

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True, Junk bonds are high-risk, high-yield debt instruments. They are often used to finance leveraged buyouts and mergers, and to provide financing to companies of questionable financial strength.

What are Junk bonds?

Junk bonds have a higher default risk than the majority of corporate and governmental obligations.

A bond is a debt or promise that, in exchange for being purchased, would pay investors interest payments as well as the return of their principal investment.

Junk bonds are bonds issued by struggling businesses that run a significant risk of defaulting, failing to make interest payments, or failing to return investors' principle.

Therefore, Junk bonds are a type of high-risk, high-yield debt. They are frequently employed to fund leveraged acquisitions and mergers as well as to lend money to businesses with uncertain financial standing.

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lena is an award-winning fiction writer. she works out of her apartment. she recently purchased a new desk in which to store her manuscripts and for use when typing up stories for publication. lena is part of the business market for the desk manufacturer.

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True - lena is an award-winning fiction writer. she works out of her apartment. she recently purchased a new desk in which to store her manuscripts and for use when typing up stories for publication. lena is part of the business market for the desk manufacturer.

manufacturing is the creation or manufacturing of products with the assist of system, exertions, machines, gear, and chemical or organic processing or system. it is the essence of secondary sector of the economic system.[1] The term might also refer to a range of human pastime, from handicraft to high-tech, but it's miles maximum typically carried out to commercial design, in which uncooked substances from the primary quarter are transformed into finished items on a huge scale.

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Scanlon Inc.'s CFO hired you as a consultant to help her estimate the cost of capital. You have been provided with the following data: rRF = 4.10%; RPM = 5.25%; and b = 0.70. Based on the CAPM approach, what is the cost of equity from retained earnings? a. 9.25%
b. 7.78%
c. 7.08%
d. 7.00%
e. 8.47%

Answers

The cost of equity from retained earnings when using the CAPM approach for Scanlon Inc., would be 7 . 80%

How to find the cost of equity ?

The CAPM method stands for the Capital Asset Pricing Method and it allows for the cost of equity to be calculated by using the beta, the real risk free rate, and the market risk premum.

The cost of equity when using the CAPM method can be found by the formula:
Cost of equity = Real risk free rate + Beta x Market premium

The real risk free rate = 4 . 10 %

Beta = 0 . 70

Market risk premium = 5 . 25 %

The cost of equity is therefore:

Cost of equity = 4 . 10 % +  0 . 70 x 5 . 25 %

Cost of equity = 4 . 10 % + 3.675 %

Cost of equity = 7. 775 %

Cost of equity = 7 . 80%

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In a mean chart for manufacturing process, several points are found to be outside the control limits. Does this mean that the process is incapable? Explain briefly why or why not, or what else should be done to find out?

Answers

Whereas, any control chart is prepared using upper control limit or UCL and lower control limit or LCL, again, such UCL and LCL values are calculated statistically or using a statistical formula.

We build a control chart of the mean or any condition to understand the variations of data within the process. Any data falling outside UCL and LCL values means processes are not in statistical control and we have found assignable causes, such kinds of causes could include large breakdown of machines, and any absenteeism of employees, with such causes we could see strong variations in the data.

Hence, points are found to be outside the control limits that doesn’t mean the process is incapable, as use could lie after the UCL line, so, any point could lie after the UCL line but before usl line, hence, we could conclude still process is capable to produce desire outputs, however, we should control variations in the processes first before considering process capability check.

When we could see variations of data in the mean control chart, we will look for root causes to fix the problem and keep the process under statistical control.

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determine the future value of the following single amounts (fv of $1, pv of $1, fva of $1, pva of $1, fvad of $1 and pvad of $1) (use appropriate factor(s) from the tables provided.) (round your final answers to nearest whole dollar amount.):

Answers

The future value, to the nearest whole dollar amount, of the following single quantities is 1. $38,435.37, 2. $67,091.09, 3. $126,985.63, 4.$94,037.04.

How can I determine future value?

How can I determine future value? Using the formula long term value = current discounted x (1 + interest rate)n, you may determine future value using compound interest. Using the following formula, you may determine future value with simple interest: Future value is equal to the present value multiplied by one plus the interest rate throughout the time period.

what is An illustration of potential worth

Future value is the amount of invested money today that will increase in value over time at an interest rate. For instance, if you put $1,000 in a savings today and earn 2% annually, your money will be worth $1,020 after a year. Thus, it will be worth $1,020 in the future.

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how does lyft benefit from its strategic alliances with gm and waymo?

Answers

"It allows Lyft to more effectively compete against Uber" is how lyft benefits from its strategic alliances with gm and waymo

What are strategic alliances?

Generally, A strategic alliance is an agreement between two companies to collaborate on a project that will be advantageous to both parties while still allowing each to maintain its individuality.

A joint venture, in which two businesses pool their resources to create a separate business entity, is more complicated and binding than the agreement, which is simpler and less binding.

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assume that the federal reserve (fed) sets the federal funds rate target at 4% and conducts open market operations to hit the 4% target. shift the appropriate curve to show the fed meeting its target. federal funds rate reserves at the fed 0 10 20 30 40 50 60 70 80 90 100 0 1 2 3 4 5 6 7 8 9 10 federal funds rate (current) federal funds rate (target) demand for reserves supply of reserves

Answers

The FFR in a roundabout way influences even longer-term hobby rates. Investors desire a greater fee for a longer-term Treasury note. The yields on Treasury notes in a roundabout way force long-term traditional personal loan hobby rates.

When the Federal Reserve decreases the federal cash goal charge the decrease fee is done through?

This alternative is right because to decrease the federal fund's target rate, the Federal Reserve purchases authorities bonds which reduces the pastime rate, and extra cash in terms of the reserve is stored through the people of the nation.\

When the Fed will increase rates, the market costs of present bonds right now decline. That's due to the fact new bonds will soon be coming onto the market providing buyers greater pastime rate payments.

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the critical path for the network activities shown below is ________ with duration ________.

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The critical path for the network activities shown below is A-D-E with duration 13.

What is Critical path?

Generally, The sequence A-D-E with a length of 13 seconds is the crucial route for the network activity indicated below.

Critical path activities are those activities that, if they are not finished on time, will cause a delay in the completion of the whole project.

In this particular scenario, action A serves as a direct antecedent for both activity D and activity E, which is the very last activity.

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With which new deal agency did the national recovery administration most closely work.

Answers

Answer:

Explanation:

Public Works Administration is considered among the most renowned and authoritative agency that is among the founding pillars of the New Deal.

when a customer places an order (on account) for a certain product, what should be done before the order is checked for inventory availability? group of answer choices the customer's available credit should be checked. the sales order should be created and written to a file. shipping should be notified of an order in process. a picking list should be generated for the warehouse.

Answers

When a consumer orders a product (on account), the customer's credit limit should be examined.

How can I find out what credit is available?

The amount you still have to spend throughout a payment cycle is your available credit. By deducting your current balance from the card's credit limit, you may figure out how much credit you have available.

When should customers run a credit check?

It is advised by the CFPB that you review your credit reports at least once each year. But monitoring your credit history and active credit accounts more frequently can provide you with a more realistic picture of your financial situation, so you might want to think about getting a free credit report every four months.

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In the long run, a firm in a perfectly competitive market earns zero economic profit, so the opportunity in the short run to enjoy positive economic profits will cause existing firms to increase output and new firms to enter the market. 1st attempt See Hint the market, driving the market price If prices are below the average total cost of production in the long run firms will until the remaining firms earn the market, driving the market price If prices are below the average total cost of production in the long run firms will until the remaining firms earn stay in enter exit the market, driving the market price If prices are below the average total cost of production in the long run firms will until the remaining firms earn down | up to stay the same until the remaining firms earn a small negative economic profit zero economic profit positive economic 25/26 profit

Answers

Given the short-term positive economic profit, new businesses should enter the market over time, increasing the size of the market.

What transpires over time in a market that is intensely competitive?

In a perfectly competitive market, businesses can only make or lose money in the short term. Because an infinite number of enterprises generate uniform, infinitely divisible things, profits and losses are ultimately eliminated.

Is there ever no economic profit in the long run?

Economic gains spur entry, economic losses cause exit, and in the long run, firms in a perfectly competitive industry will generate no economic gains.

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