DONT ANSWER PLZZZZZZZZZ

In a competitive market with free entry and exit, the process of entry and exit ends when, for the typical firm in the market,

alukav5142 [94]

Answer:

The correct answer is option a.

Explanation:

In a competitive market, there is no limitation on entry and exit, entry and exit are free. The firms in a perfectly competitive market are price takers. They have a horizontal line demand curve which also represents average revenue and marginal revenue.

The firms will enter the market in the long run if the price or marginal revenue is greater than average total cost. The firms will be maximizing their profits if the average total cost is equal to marginal revenue and price.

The firms will exit the industry if price and marginal revenue fall below the average total cost.

3 0

3 years ago

Which of the following statements about the consumption component of GDP is not correct?

Assoli18 [71]

Answer:

D. Spending on services is smaller than the amount of consumption spending on durable and nondurable goods.

Explanation:

For developed countries like the U.S, there is a lot of stress in consumption of services such as good health care, appropriate and quality education and among others. These services contribute to a larger proportion of consumption component of GDP than both durable and nondurable commodities. Therefore, the statement “spending on services is smaller than the amount of consumption spending on durable and non-durable goods” is not correct

3 0

3 years ago

Who is the son of the actress who played the mother-in-law of the “Sex and the City” character who graduated Harvard?

irinina [24]

Miranda Hobbes is the mother in law who graduated from harvard, she’s now a lawyer

7 0

4 years ago

You are a newspaper publisher. You are in the middle of a one-year rental contract for your factory that requires you to pay $50

astra-53 [7]

Answer:

If sales fall by 20% AFC raises 38 cents per paper, i.e. a 25% increase in AFC.

Explanation:

To find the average fixed cost (AFC), we have to sum all fixed costs and divide it by the amount of units produced. Fixed costs are those that don't depend on how much is produced, in this case, rental and labor cost don't depend on output, as you can neither move to a cheaper place nor decrease labor obligations even if the factory had no output (newspapers printed).

$AFC=\frac{\mbox{Fixed costs}}{\mbox{Printed papers}} \\\\AFC_{\mbox{original sales}} =\frac{\$1500000}{1000000 papers}=1.5\frac{\$}{paper} \\\\AFC_{\mbox{original sales}} =\frac{\$1500000}{800000 papers}=1.875 \frac{\$}{paper}$

$\mbox{Porcentual difference}=\frac{\mbox{difference between AFC}}{\mbox{original AFC}} \\\\\mbox{Porcentual difference}=\frac{1.875-1.50}{1.50}*100=\frac{0.375}{1.5} *100=25\%$

We can see that as the output reduced, AFC rose 38 cents per paper or a 25% increase in AFC.

4 0

4 years ago

On August 4, Rothchild Company purchased on account 12,000 units of raw materials at $14 per unit. During August, raw materials

balandron [24]

Answer and Explanation:

The journal entries are shown below:

On Aug 4

Raw Materials (12,000 units × $14) $168,000

To Accounts Payable 168,000

(Being the raw material purchased is recorded)

For recording this we debited the raw material as it increased the assets and credited the account payable as it also increased the liabilities

On Aug 31

Work in Process Dr $126,800

To Raw materials inventory $126,800

($5,000 × $8) + ($6,200 × $14)

(Being the requisition is recorded)

For recording this we debited the work in process and credited the raw material inventory

4 0

4 years ago