An example of consumer spending when calculating the GDP using the expenditures approach is ____

Your uncle has just purchased a wheat farm and wants your advice on how he should price his product. Explain to your uncle the c

Katena32 [7]

Answer:

the wheat firm is perfectly competitive

A perfect competition is characterized by many buyers and sellers of homogenous goods and services. Market prices are set by the forces of demand and supply. There are no barriers to entry or exit of firms into the industry.

In the long run, firms earn zero economic profit. If in the short run firms are earning economic profit, in the long run firms would enter into the industry. This would drive economic profit to zero.

Also, if in the short run, firms are earning economic loss, in the long run, firms would exit the industry until economic profit falls to zero.

he is a price taker and the price of his wheat which would be equal to equilibrium price would be determined by market forces

if he sells at the market price, he would sell all his wheat

Explanation:

If the uncle sells above equilibrium price, he would not sell any wheat

he cannot sell below equilibrium price because he would make losses

4 0

3 years ago

Explain the debtor-creditor relationship.

Helen [10]

A debtor is someone who owes a financial obligation (a “debt”) to another, known as the creditor. An example of a debtor-creditor relationship is where a bank lends money to an individual or company, on the basis that the money has to be paid back at some point to the bank

7 0

3 years ago

Read 2 more answers

I feel nice so just tell me your fave game

luda_lava [24]

Answer: The sims

Explanation: Because its the best

5 0

4 years ago

Read 2 more answers

How would each of the following affect the firm's marginal, average, and

gizmo_the_mogwai [7]

Answer:

i have no idea

Explanation:

bnjknj

7 0

3 years ago

Ober Corporation, which has only one product, has provided the following data concerning its most recent month of operations: Se

sertanlavr [38]

Answer:

Results are below.

Explanation:

The variable costing method incorporates all variable production costs (direct material, direct labor, and variable overhead).

First, we need to calculate the total unitary variable cost:

Total unitary variable cost= 38 + 36 + 6 + 9

Total unitary variable cost= $89

Now, the income statement:

Sales= 8,400*120= 1,008,000

Total variable cost= 89*8,400= (747,600)

Total contribution margin= 260,400

Fixed manufacturing overhead= (151,300)

Fixed selling and administrative expense= (109,200)

Net operating income= (100)

The absorption costing method includes all costs related to production, both fixed and variable. The unit product cost is calculated using direct material, direct labor, and total unitary manufacturing overhead.

First, we need to calculate the unitary production cost:

Unitary production cost= 38 + 36 + 6 + (151,300 / 8,900)

Unitary production cost= $95

Now, the income statement:

Sales= 1,008,000

COGS= 8,400*95= (798,000)

Gross profit= 210,000

Total selling and administrative expense= 109,200 + (8,400*9)= (184,800)

Net operating income= 25,200

8 0

3 years ago

An example of consumer spending when calculating the GDP using the expenditures approach is _____.