Answer:
This statement is true.
Explanation:
In a perfectly competitive market, there are a large number of firms in the market. There is no barriers to entry to exit in the market. The firms are producing homogenous products.
The firms in this market will earn positive profits in the short run as in short run, the firms can't enter the market.
In the long run, though the firms will be attracted to the positive profits earned by the existing firms to enter the market.
This will cause the supply in the market to increase, this increase in the supply will shift the supply curve to the left. This leftward shift in the supply curve will reduce the price of the product.
The market share and profits of the individual firms will decline. This will continue till the profits are reduced to zero.
Answer:
explicit cost
Explanation:
The explicit cost will be the accounting expenses, those which are related to business operations like: materials, labor, rent, insurance and others.
This cost will be presented in the income statement and determinate the net income for the firm.
In constract for the explicit cost there are implicit cost. Those cost are related to output we renounce for using the factor in the current business (interest from a banking account instead of in investment in a forniture business; wages from another job instead of being entrepreneur)
Answer:
all publics have their own special needs and require different types of communication
Explanation:
To effectively communicate with a public, it is important to recognize that all publics have their own special needs and require different types of communication
Answer: Enter into a futures contract
Explanation:
Wheldon Wheels inc. operates in the United states, The company exports car Parts to Taiwan which means they do business with companies in Taiwan. The amount that Wheldon Wheels inc receives when they export car parts depends on the Exchange rate between a US dollar and Taiwan Dollar.
Exchange rates between currencies fluctuates every day in the market which presents a problem of uncertainty because when exchange rate changes the value of the transaction changes and that will increase or decrease a company's profits in each transaction.
Wheldon Wheels Expects to receive 20 000 000 Taiwan dollars in 90 days, since the company is in The united states the amount of 20 000 000 of Taiwan Dollars Receivable will need to be converted into US dollars. The Problem is, The exchange rate may decrease or increase in the next 90 days which will affect how much Wheldon Wheels receives in dollars.
Wheldon Wheels inc may Protect them selves against Exchange rate Fluctuations by entering into A Future Contracts with a Bank or exchange dealer. Futures Contract will provide Wheldon Wheels inc with an opportunity to sell 20 000 000 Taiwan Dollars in 90 days at a fixed predetermined exchange rate. The Dealer Promises to Buy 20 000 000 Taiwan Dollars in 90 days at a Predetermined Fixed exchange rate.
example
suppose the (WW) enters into a Futures contract to sell 20 000 000 Taiwan Dollar in 90 days at an Fixed exchange rate of $1 = 1.5 Taiwan dollar, if the market exchange rate in 90 days is $1 = 1.3 Taiwan dollar Wheldon Wheels inc would be protected. The Exchange rate for the 20 000 000 Taiwan Dollar transaction would remain at $1 = 1.5 Taiwan dollar
Answer:Skysong journal $
Date
December 2020
Raw material Dr 984,100
Loss on raw material 48,000
Supplier Cr 1,032,100
Narration. recognition of raw materials purchased at agreed value.
2021
Supplier Dr. 1,032,100
Bank Cr. 1,032,100
Narration. Payment for raw materials purchased at agreed value.
Explanation:
The raw materials needs to be paid for at the agreed value not withstand ing the fall in value. However stock are to be recognized at cost or net realisable value which ever is less and since the market value of the stock has dropped this has to be recognized as a loss in the income statement to avoid the stock been over value.
