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3 years ago

"why would a producer decide to produce in a competitive market in which she will earn zero profit in the long run?"

Business

2 answers:

-BARSIC- [3]3 years ago

4 0

Answer:

Because at zero profit, with her revenue, she can cover all her costs—explicit and implicit (opportunity cost).

Explanation:

At zero profit, the revenue covers all of its costs, including the implicit costs. Recall that implicit costs include the cost of lost wages from time working on one's own business. Hence at zero economic profit, the producer not only covers the accounting costs of production, but also covers the opportunity cost of the next best use for the resources, such as foregone wages by not working at a different job.

notka56 [123]3 years ago

3 0

<span>Money is not the only measure of success and not everything is transactional. A producer may choose to produce for many reasons. Among them, working with exceptional talent as well as gaining experience and getting street creds.</span>

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In computing depreciation, salvage value isa. the fair market value of a plant asset on the date of acquisition.b. subtracted fr

kirill115 [55]

Answer:

c. an estimate of a plant asset's value at the end of its useful life

Explanation:

The salvage value or the residual value is the estimated value of the fixed asset which can be received at the end of its useful life. So, neither it is a fair market value of a plant asset , nor it is deducted from the accumulated depreciation.

The treatment of the residual value under the straight-line method or any other method is shown below:

The depreciation expense under the straight-line method is shown below:

= (Original cost - residual value) ÷ estimated life in years

The residual value should always be deducted from the original cost of fixed asset

5 0

3 years ago

Roseanna asked Henry, one of her team members, to purposefully think of and voice criticisms as the group discussed a popular id

enot [183]

Answer:

Devil's advocacy.

Explanation:

Devil's advocacy is defined as a person who pretends in a discussion. He/she pretends to be against an idea or plan many people support so as to make people discuss it in more detail. Here Rosana uses devil's advocacy on Henry by telling him to criticize the group's discussion.

8 0

3 years ago

Which of the following can explain the upward slope of the short-run aggregate supply curve? a. nominal wages are slow to adjust

Goryan [66]

Answer: A - nominal wages are slow to adjust to changing economic conditions

Explanation:

In the short run, the costs of many of the factors used in the production process are fixed. For example labours wage is fixed for a number of years because of labour contracts. Also the raw materials used in the production process have long term agreements that fix their prices.

As a result of factors of production been fixed in the short run, when general price level rises and the cost of production remains constant, profit also rises.

Firms take advantage of this rise in price and increase production and the quantity of aggregate supply increases. This is why the short run aggregate supply curve is upward sloping.

7 0

3 years ago

Cook Company processes and packages frozen seafood. The year just ended was Cook's first year of business and they are preparing

lys-0071 [83]

Answer:

Cook Company

a. The direct labor price variance and the direct labor efficiency variance for the year:

Direct labor price variance = (Actual rate - Standard rate) * Actual hours

= $247,000 Favorable

Efficiency variance = (Actual hours - Standard hours) * Standard rate

= $94,500 Unfavorable

b. If all variances are written off to the Cost of Goods Sold:

Journal Entries:

Debit Work in Process $247,000

Credit Direct labor variance $247,000

To record the favorable direct labor price variance.

Debit Direct labor variance $94,500

Credit Work in Process $94,500

To record the unfavorable direct labor efficiency variance.

Debit Direct labor variance $152,500

Credit Cost of Goods Sold $152,500

To close the direct labor price variance.

c. The appropriate accounts are not indicated, though they should be Raw materials, Work in Process, and Cost of Goods Sold. However, the ratios are not given for prorating.

Explanation:

a) Data and Calculations:

Standard direct labor hours per unit = 2

Standard rate per direct labor hour = $27

Production units = 60,000

Ending Finished goods = 4,800

Cost of goods sold units = 55,200

Actual direct labor hours used = 123,500

Standard hours = 120,000 (2 * 60,000)

Actual direct labor costs = $3,087,500

Actual direct labor price = $25 ($3,087,500/123,500)

Standard direct labor costs = $3,240,000 (120,000 * $27)

a. The direct labor price variance and the direct labor efficiency variance for the year:

Direct labor price variance = (Actual rate - Standard rate) * Actual hours

= ($25 - $27) * 123,500

= $247,000 Favorable

Efficiency variance = (Actual hours - Standard hours) * Standard rate

= (123,500 - 120,000) * $27

= $94,500 Unfavorable

b. If all variances are written off to the Cost of Goods Sold:

Analysis of Journal Entries:

Work in Process $247,000 Direct labor variance $247,000

Direct labor variance $94,500 Work in Process $94,500

Direct labor variance $152,500 Cost of Goods Sold $152,500

($247,000 - $94,500)

5 0

3 years ago

the bookkeeper for Blue Spruce Equipment Repair made a number of errors in journalizing and posting, as described below. For eac

Sergeu [11.5K]

Answer:

Note: The full question is attached as picture below

(a) (b) (c)

In Larger

Balance Difference column

1. No $725 Debit

2. Yes NA NA

3. Yes NA NA

4. No $225 Credit

5. Yes $684 NA

6. No $45 Credit

7 0

2 years ago