Answer:
The accounting profit is $30,000.
Explanation:
The implicit cost of running the restaurant is the opportunity cost of giving up a salary of $40,000 per year working as a chef.
The revenue earned from the restaurant is $100,000.
The explicit costs is
= $50,000 + $20,000
= $70,000
An accountant will consider only the accounting cost or explicit cost in the calculation of profits.
Accounting profit
= Total revenue - Explicit costs
= $100,000 - $70,000
= $30,000
Answer:
b
e
Explanation:
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.
Answer:
Cost of Goods Sold Dr.
To Supplies Expense
Explanation:
The journal entry for cost of goods sold should've been:
Cost of goods sold A/C Dr.
To Purchases A/C
(Being cost of goods sold expense recorded)
The wrong entry passed has been:
Supplies expenses A/C Dr.
To Purchases A/C
The rectifying (correcting) journal entry should be:
Cost of Goods Sold A/c Dr.
To Supplies Expenses A/C
(Being rectification entry for cost of goods sold recorded)
Cost of goods sold is an expense and expenses should be debited.
At the same time, purchase being a nominal account, crediting it would reduce the purchases balance.
Supplies expense was wrongly debited so it has been credited to cancel out the effect.
Answer: Law of demand
Explanation:
The law of demand is defined as when the quantity an the price of the products and the services are increased then the demand the the similar products get decreased as it is inversely proportional with each other.
The other factors or the conditional are become equal or constant and this is also known as the elastic demand. The law of demand is refers to the relationship between price and the quantity of products in the market.
Therefore, Law of demand is the correct answer.
