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1 year ago

In a competitive market equilibrium, the allocation of the social surplus is such that ____________.

1 answer:

6 0

In competitive market equilibrium, the allocation of the social surplus is such that no individual can be made better off without making someone else worse off.

The phrase "competition equilibrium" refers to an equilibrium condition when the firm's goal of maximising profits and the customers' goal of maximising utility both aspire to reach an equilibrium price as a result of freely determined prices.

According to the theory of competitive equilibrium, the firm's supply of the product is equal to the market's demand for that same amount of the product. It is a circumstance in which neither the buyer nor the seller can strengthen their bargaining position with regard to the goods being sold.

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Evaluating and rewarding managers based on absorption basis income can lead to overproduction. true or false

nikklg [1K]

Answer:

True

Explanation:

The absorption basis of income, profits are always high when the production is greater than income because more fixed costs will have been deferred in closing inventory.

So, managers will focus more on increasing production which create huge balances of closing stocks and consequently results in large profits.

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3 years ago

Macee Department Store has three departments, and it conducts advertising campaigns that benefit all departments. Advertising co

DerKrebs [107]

Answer:

Results are below.

Explanation:

Giving the following information:

Estimated overhead costs= $130,000

Total sales= 201,000 + 314,900 + 154,100= $670,000

First, we need to calculate the predetermined overhead rate:

Predetermined manufacturing overhead rate= total estimated overhead costs for the period/ total amount of allocation base

Predetermined manufacturing overhead rate= 130,000 / 670,000

Predetermined manufacturing overhead rate= $0.194 per sales dollar

Now, we can allocate overhead:

Allocated MOH= Estimated manufacturing overhead rate* Actual amount of allocation base

1= 201,000*0.194= 38,994

2= 314,900*0.194= 61,090.6

3= 154,100*0.194= 29,895.4

8 0

3 years ago

Jeff is a manager at a paper mill. he has received a grievance from a group of employees who are union members. the grievance cl

Fudgin [204]

The best thing that Jeff will do in this situation is to conduct an examination in terms of the grievant’s personnel records as this is only best and appropriate that Jeff to review the files of his employees in solving the problem.

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3 years ago

Sheffield Corp. determines that 53000 pounds of direct materials are needed for production in July. There are 3100 pounds of dir

zvonat [6]

Answer:

Budgeted total cost of Direct Material purchases ($) =$ 157,800

Explanation:

Raw material purchase budget is determined by adjusting the raw material usage budget for opening and closing inventory of materials.

Purchase budget = usage budgeted + closing inventory - Opening inventory

Material purchase budget = 53,000 + 2,700 - 3,100= 52,600 pounds

Note the closing inventory represents the stock of materials needed to be kept, hence it will increase the purchase budget. So we added.

On the other hand hands, the opening inventory represented what already existed , hence we subtracted it as it will reduce what will be required.

Material purchase budget ($) = purchase budget in quantity × standard price per quantity

Material purchase budget = 52,600 × $3 = $ 157,800

Budgeted total cost of Direct Material purchases ($) =$ 157,800

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3 years ago

Which situation is an example of a person making use of credit?

ivann1987 [24]

An example of a person making use of credit is a business owner takes out a loan to expand and redecorate her offices.

<h3>What is credit?</h3>

Credit is when a person makes use of money he or she does not have in her account. Usually, the person borrows the money from a lender. When a business owner takes out a loan, she is making use of credit.

To learn more about credit, please check: brainly.com/question/27547395

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5 0

2 years ago