How can I convince a friend to invest in a good manner

Which of the following is NOT a basic assumption of perfect competition? A. Production is characterized by significant economie

Alex17521 [72]

Answer: Production is characterized by significant economies of scale is not an assumption of perfect competition (A)

Explanation:

A perfect competition is a form of market structure that has many buyers and may sellers. In a perfect competition, there is a free entry and exit for producers as there is no barrier.

Also, firms are price takers as no producer can influence the price of the goods in the market unlike in an imperfect competition which is a price maker as producers can influence price. Firms also sell identical products that are the same in quality, size etc.

In a perfect competition, production is not characterized by significant economies of scale. That is an assumption that can be found in monopoly.

Therefore, option A is the right answer.

7 0

3 years ago

Dr. Faulk's Outdoor Market wants to raise $2 million by selling 20-year coupon bonds at par. Comparable bonds in the market have

Greeley [361]

Answer:

The coupon rate should be: 6.62%.

Explanation:

* Yield to maturity calculation:

With the comparable bond in the market, we have:

+ Semiannual coupon payment = 2 million x 6.3% / 2 = $63,000

+ Price of the bond = 2,000,000 x 96.5% = $1,930,000

=> 1,930,000 = [ (63,000/YTM) x ( 1 - (1+ YTM)^(-40) ] + [2,000,000/(1+YTM)^40] <=> YTM = 3.31%.

* Coupon rate calculation:

To raise $2 million with the duration for 20-year, the present value of the coupon streams from the Bond the company offers plus the present value of the face value repayment in 20 years time; discounting at YTM, should equal to $2 million:

we have:

2,000,000 = [ (Coupon payment/3.31%) x ( 1 - 1.0331^(-40) ] + [2,000,000/1.0331^40] <=> Coupon payment = $66,200.

=> Coupon rate = Semiannual coupon payment / Face value x 2 = 66,200/2,000,000 x 2 = 6.62%

8 0

3 years ago

Robbie and Cate were divorced in 2012 and neither one has remarried. They have one daughter, Amy, age 9, who lives with Cate. Ro

goldenfox [79]

Cate can claim Amy as a dependent.

<u>Explanation:</u>

The custodial parents can claim their child as the dependent, as a qualifying child for head of household filing status, for EIC, for the child tax credit and so on. But in case the parents get divorced, then the parent with whom the child spends the most time gets to claim the child as dependent.

In the above case, since Amy stays with Cate, Cate gets to claim Amy as dependent because she is staying with Cate only and spends the most time with her.

5 0

3 years ago

Exercise 8-3 (Algo) Lump-sum purchase of plant assets LO C1 Rodriguez Company pays $389,610 for real estate with land, land impr

polet [3.4K]

Answer:

1. Land $175,324.50

Land improvements $38,961

Building $175,324.50

2. Dr Land $175,324.50

Cr Cash $175,324.50

Being entries to recognize cost incurred in the purchase of Land

Dr Land improvements $38,961

Cr Cash $38,961

Being entries to recognize cost incurred in the purchase of Land improvements

Dr Building $175,324.50

Cr Cash $175,324.50

Being entries to recognize cost incurred in the purchase of Building

Explanation:

Using the appraisal method to apportion the cost of an asset to the components of the asset involves the consideration of the appraised cost of each individual item as a portion of the total cost of the asset.

Thus, given that Rodriguez Company pays $389,610 for real estate with land, land improvements, and a building

Appraised cost of

Land = $247,500

Land improvements = $55,000

Building = $247,500

Total appraised cost of the asset = $247,500 +$55,000 + $247,500

= $550,000

Allocated cost of;

Land = $247,500/$550,000 * $389,610

= $175,324.50

Land improvements = $55,000/$550,000 * $389,610

= $38,961.00

Building = $247,500/$550,000 * $389,610

= $175,324.50

Journal entries

Dr Land $175,324.50

Cr Cash $175,324.50

Being entries to recognize cost incurred in the purchase of Land

For journal entries, we debit each of the individual assets account and credit cash to recognize the cost incurred in the purchase of the asset.

5 0

3 years ago

The law of demand states that:

denis-greek [22]

Answer: The law of demand States that as price falls, quantity demanded increases and vice versa. (A).

Explanation:

In Economics, the law of demand states that all other things being equal; as the price of a good or commodity or service increases (↑), the quantity of the good/service demanded declines (↓); also, as the price of a good/service declines (↓), the quantity demanded increases (↑).

In other words, the law of demand shows an inverse relationship between the price and quantity demanded of a good/service.

Consequently, other things being constant, the quantity demanded of a good/service is inversely proportional to the price of the good/service.

For example if the price of a luxurious car falls it would motivate the buyers to rush to get a car. This law of demand is also used by marketers to attract buyers by the use of discount on goods.

6 0

3 years ago