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Viefleur [7K]
1 year ago
9

T-Shirt Enterprises is selling in a purely competitive market. Its output is 300 units, which sell for $1 each. At this level of

output, marginal cost is $1 and average variable cost is $1.50. The firm should:
Business
1 answer:
FinnZ [79.3K]1 year ago
8 0

When the level of output, marginal cost is $1 and average variable cost is $1.50. The firm should "produce no output units".

<h3>What is purely competitive market?</h3>

Perfect competition refers to a fictitious market structure. If there is perfect competition, there are no monopolies.

The following characteristics of this kind of structure are crucial:

  • All enterprises sell the same product, which is a homogeneous or commodity good.
  • Every business is a price taker, meaning that they have no control over the market price for their goods.
  • Market share has no bearing on price adjustments.
  • The product being supplied and the pricing each business is seeking with in past, present, or future are all completely or perfectly known to buyers.
  • Resources such as labor and capital are totally movable.
  • There are no fees for businesses to enter or exit the market.

Each genuine market can be categorized as imperfect since they all occur beyond the level of the ideal competition model.

To know more about the purely competitive market, here

brainly.com/question/15176320

#SPJ4

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Prior to closing, a final walkthrough of the property should be performed to ensure that everything has remained as stated in th
Galina-37 [17]

Answer:

D. Buyer

Explanation:

The buyer is the one who is interested in purchasing the property and becoming the new owner. A walkthrough which involves inspecting the property and making sure everything has remained stated and is in order is done by the buyer who is interested in owning the property. A buyer can always demand for a walkthrough. The walk through gives the buyer time to inspect the property before closing.

8 0
3 years ago
Carla Vista Energy Company owns several gas stations. Management is looking to open a new station in the western suburbs of Balt
tatuchka [14]

Answer:

The present Value of the growing annuity= $1,158,092.68  

Explanation:

The present value of the growing annuity is going to be computed as follows:

PV = A/(r-g) × (1- (1+g/1+r)^n)

A- annual cash flow- $87,460

g- growth rate - 6.3%

n- number of years =73

r- discount rate - 13.8%

I will break out the formula into two parts to make the workings very clear to follow. So applying this formula, we can work out the present value of the growing annuity  as follows.  

A/(r-g)  = 87,460/(0.138-0.063) =1,166,133.33

(1- (1+g/1+r)^n)  = 1- (1.063/1.138)^73 =0.9931

PV = A/(r-g) × (1- (1+g/1+r)^n)

166,133.33× 0.9931 =  1,158,092.68  

The present Value of the growing annuity= $1,158,092.68  

6 0
3 years ago
On July 23 of the current year, Dakota Mining Co. pays $7,147,920 for land estimated to contain 9,048,000 tons of recoverable or
Korolek [52]

Answer:

ore deposits     7,147,920 debit

           cash                  7,147,920 credit

--to record purchase of land with ore deposit--

machinery         1,900,080 debit

        account payable       1,900,080 credit

Account payable 1,900,080 debit

            Cash                      1,900,080 credit

--to record machine installation and payment of it 2 days later--

depletion expense          368,535

depreciation expense       97,965

ore deposit                                          368,535‬

equipment accumulated depreciation 97.965‬

Explanation:

the first entries are quite self-explanatory

<u>Now, to calculate the depreication and depletion:</u>

The machine will be depreciate at the same phase as the ore deposit As the asset is relate to it and will have no value after the miniming project ends.

depreciation  for the year:

466,500 / 9,048,000 x 7,147,920  = 368.535‬ ore deposit amortization

466,500 / 9,048,000 x 1,900,080 =    97.965‬ equipment depreciation

3 0
3 years ago
Arizona Desert Homes (ADH) constructed a new subdivision during 2017 and 2018 under contract with Cactus Development Co. Relevan
kipiarov [429]

Answer:

The Journal entry is as follows:

Construction in progress A/c   Dr. $950,000

Cost of construction A/c           Dr. $1,600,000

To revenue from long term contracts                       $2,550,000

(To record the revenue in 2018)

Workings:

Cost of construction:

= cost of 2017 + cost of 2018

= $1,100,000 + $500,000

= $1,600,000

4 0
3 years ago
you have decided to sublet your apartment. your tenant has agreed to pay $150 per month starting today (with payments made at th
mixas84 [53]

Answer:

PV= $1,173.44

Explanation:

Giving the following information:

your tenant has agreed to pay $150 per month. There are eight months left on the lease, the appropriate interest rate is 6%, compounded monthly.

<u>To calculate the net present value, first, we need to calculate the final value and then use the present value formula.</u>

FV= {A*[(1+i)^n-1]}/i

A= annual pay= 150

i=0.06/12= 0.005

n=8

FV= {140[(1.005^8)-1]}/0.005= 1,221.21

Now, we calculate the present value:

PV= FV/(1+i)^n

PV= 1,221.21/1.005^8= $1,173.44

4 0
3 years ago
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