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2 years ago

CHAPTER 8, TEST A

Business

1 answer:

Fynjy0 [20]2 years ago

5 0

The marking of the statements 1-18 as true or false is as follows:

1. True. The main similarity among the four market structures is the existence of buyers and sellers.

<h3>What are the four market structures?</h3>

The four market structures are:

Perfect competition
Monopolistic competition
Oligopoly
Monopoly.

They all have buyers and sellers, though, the number differs from one to the other.

2. True. In a perfectly competitive market, buyers and sellers have relevant information about prices, product quality, and sources of supply.

3. True. The stock market is an example of a perfectly competitive market.

4. True. If a perfectly competitive market doesn't satisfy all four characteristics 100 percent, then it is not a perfectly competitive market.

5. True. Profit attracts new firms into the perfectly competitive market.

6. False because there is no ease of entry into a monopolistic market.

7. False. It is not important to a monopolist to search out the best price through trial and error.

8. True. In some towns, cable television providers and trash collectors are monopolists.

9. False. Copyright is not required on medicine to protect a pharmaceutical company from competitors. But a patent is required because copyrights are for intellectual property rights.

10. False. Patents are usually granted for 20 years and not five years.

11. True. Barriers to entry limit potential competition.

12. True. Owning all of a scarce resource can allow a firm to operate as a monopoly without legal protection. This is regarded as a natural monopoly.

13. True. Antitrust laws are meant to control monopoly power and promote competition.

14. True. The Sherman Act prohibits anti-trust actions, which restrain trade.

15. True. A natural monopoly exists when a firm's product is made with resources provided by nature.

16. True. The U.S. Supreme Court decides some antitrust cases.

17. True. The term colluding refers to making secret agreements that reduce competition.

18. True. Taxi and limousine service in New York City is relatively inexpensive due to the ease of entry into that market.

Thus, the marking of statements 1-18 as true or false is completed.

Learn more about monopolies and anti-trust acts at brainly.com/question/8379521

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alina1380 [7]

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3 years ago

On January 1, JC Co. accepted a 60-day, 6%, note in the amount of $10,000 from a customer. On March 2, the due date of the note,

sammy [17]

Answer:

Cash account in the amount of $10,100

Explanation:

The journal entry to be recorded for the receipt of payment is as:

Cash A/c.............................................Dr $10,100

Note receivable A/c...................Cr $10,000

Interest Revenue A/c..................Cr $100

Being recoded the receipt of payment

As payment is received so asset is increasing and any increase in asset is debited. Therefore, cash account is debited. And the note receivable got decrease will be credited and the interest revenue is also credited.

Computation of interest revenue is as:

Interest revenue = Amount × % of note × Days / Number of days in a year

= $10,000 × 6% × 60 / 360

= $100

Note: Assume 360 days in a year

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4 years ago

Please please answer these help me plz

adell [148]

Explanation:

Control

Entrepreneurs naturally have long-term vision and find focus on quarterly profits frustrating

As an owner of a privately held company, you have complete authority over operational decisions and don’t have to worry about shareholder expectations and interference. Shareholders in public companies are often focused on current earnings and they can exert tremendous pressure to increase earnings in the short term in order to increase the value of their stock.

Right of Non-Disclosure

Privately held companies are not required to disclose details about their operations that could potentially benefit competitors. The SEC has stringent disclosure requirements for public companies, including the details of investor conferences, research analyst meetings and shareholder discussions.

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Information such as executive compensation, legal settlements and other sensitive information cannot be kept confidential in public companies. Compliance with these SEC disclosure regulations can expose information that you would prefer to keep confidential.

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3 years ago

Bassett Fruit Farm expects its EBIT to be $373,000 a year forever. Currently, the firm has no debt. The cost of equity is 13.2 p

julia-pushkina [17]

Answer:

The correct answer is $1,836,742.42.

Explanation:

According to the scenario, the given data are as follows:

EBIT = $373,000

Cost of equity = 13.2%

Tax rate = 35%

So, we can calculate the unlevered value of the firm by using following formula:

Unlevered value of the firm = EBIT × (1 - TAX RATE) ÷ COST OF EQUITY

By putting the value, we get

Unlevered value of the firm = $373,000 × ( 1 - 35%) ÷ 13.2%

= $373,000 × 0.65 ÷ 0.132

= $242,450 ÷ 0.132

= $1,836,742.42

6 0

3 years ago