When it is easy for competitors to enter the market, will increase. in the run, as more competitors enter the market, it be possible for existing companies to earn economic profit. this means that the price charged must be equal to

Supply

Long

Will not

Marginal Cost

Explanation:

In a market where there are low barriers to entry, in the long run firms would enter into an industry where existing firms earn an economic profit. This would lead to an increase in supply.

When firms enter into the industry, the economic profit earned by existing firms would fall to zero and firms would set price at price equal to marginal cost

Main route:

Smelting --> Rolling --> Converting --> Sheared Sheet

Secondary route     -->

Smelting --> Rolling -->  rolled sheet

1) Smelting trasnferred materials into Rolling

2) It will be part of that department work in process inventory

"WIP SConverting debit then factorty overhead credit"

Later it will be transferred out as a complete process therefore,

Finished good Inventory - Shared sheet

3) the Smelting department transfer the entire of his output into Rolling department

4) the finished good will become cost of good solg once they are sold.

·

Explanation:

We have to read he description of how the processing system works and check to whichdeparmtent are the goods being transferred or sold.