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2 years ago

For a perfectly competitive firm, marginal revenue: ________

1 answer:

3 0

In a perfectly competitive market, the marginal revenue will be equal to the price. In a perfectly competitive market, there will be a large number of buyers and sellers selling their goods at the same rate. The goods will be homogenous and there will be no difference in the goods sold. In such a case the marginal revenue will be equal to the price of the goods.

Let us assume a perfectly competitive market. A seller will be able to sell whatever quantity he wants at that rate. If the price of the goods is increased he will not have customers. There is no use in reducing the price as the customers are willing to buy the goods at a higher rate. The market is also able to buy all the goods sold by the seller so their marginal revenue will not decrease.

In a perfectly competitive market, the marginal revenue line is a horizontal line. this line will be equal to the price of the goods in the market.

1. Learn more about the perfectly competitive firm from:

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Power Drive Corporation designs and produces a line of golf equipment and golf apparel. Power Drive has 100,000 shares of common

monitta

Answer:

See the journal entries below.

Explanation:

Each of these transactions can be recorded in the journal as follows:

Date Particulars Debit ($) Credit ($)

Mar 1 Cash (50,000 * $47) 2,350,000

Common stock 50,000

Additional Paid-in Capital 2,300,000

(To record Issue of 50,000 additional shares for $47 per share.)

May 10 Treasury stock (4,500 * $50) 225,000

Cash 225,000

(To record Purchase of 4,500 shares of treasury stock)

Jun 1 Dividend (w.1) 181,875

Dividend payable 181,875

(Record dividend declared.)

Jul 1 Dividend payable 181,875

Cash 181,875

(Record dividend paid.)

Oct 21 Cash (2,250 * $55) 123,750

Treasury stock (2,250 * $50) 112,500

Additional Paid-in Capital 11,250

(To record resale of shares of treasury stock.)

Working:

w.1. Dividend = Dividend per share * (Shares of common stock outstanding as of the beginning of 2018 + Additional shares issued on March 1 - Shares of treasury stock purchased on May 10) = $1.25 * (100,000 + 50,000 - 4,500) = $181,875

4 0

3 years ago

The Math department also purchased a printer. After 4 years, it will have a salvage value of $200. A new printer is expected to

Aleksandr [31]

Answer:

determine the size of payments.

$202,42

Explanation:

Expected cost 2000

Salvage value old printer 200

Cost requirement 1800

FVOrdinary Annuity=C*(1+i)n-1/i

1800=c*(1+3%)>8-1/i

C=202,42

N Monthly % VF

0 202,4214999 1,00 202,42

1 202,4214999 1,06 214,57

2 202,4214999 1,12 227,44

3 202,4214999 1,19 241,09

4 202,4214999 1,26 255,55

5 202,4214999 1,34 270,89

6 202,4214999 1,42 287,14

7 202,4214999 1,50 304,37

6 0

3 years ago

Bill needs to buy groceries, get a haircut, and stop for lunch. He could accomplish all these things under the same roof if he w

erik [133]

Answer:

Superstore

Explanation:

There are different stores but the supermarket can satisfy customers ' needs and wants

The supermarket is a very major retail store that sells a wide range of products such as food, shoes and accessories, clothing and accessories, sportswear, jewelry, beauty products, computers, electronic equipment, travel bags, household appliances, etc.

This is the store that, under the same roof, can satisfy the customer's desires and try to meet their expectations.

4 0

3 years ago

Schister Systems uses the following data in its Cost-Volume-Profit analyses: Total Sales $ 400,000 Variable expenses 280,000 Con

sweet-ann [11.9K]

Answer:

Contribution margin= 144,000

Explanation:

Giving the following information:

Total Sales $ 400,000

Variable expenses 280,000

Contribution margin 120,000

To calculate the new contribution margin, we need to increase sales and variable cost by 20%

Total sales= 400,000*1.20= 480,000

Variable expense= 280,000*1.2= (336,000)

Contribution margin= 144,000

3 0

3 years ago

Someone invests a constant stream of $450 per year at a continuously compounding interest rate of 5%. What is the present value

mixer [17]

Answer:

The present value of the annuity will be 8,215

Explanation:

This will be the case of an annuity.

There is an annuity of 450 dollars, at a 5% rate for 50 years.

$C \times \frac{1-(1+r)^{-time} }{rate} = PV\\$

c= 450

rate = 0.05

time = 50

$450 \times \frac{1-(1+0.05)^{-50} }{0.05} = PV\\$

PV = $8,215.1665

rounding to nearest dollar = $8,215

4 0

3 years ago