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seraphim [82]
3 years ago
14

What is the purpose of a free-market system?

Business
2 answers:
djyliett [7]3 years ago
8 0

Answer:

To allow consumers and producers to make their own decision

Nady [450]3 years ago
6 0

Answer:

<em>D. To allow consumers and producers to make their </em>

<em>own decisions</em>

Explanation:

A <em>free-market system</em> is the market form determined by free market forces of demand and supply.

No government intervention takes place in this form of market as in a centrally planned economic system. This non- intervention of the government prevents <em>economic distortions</em> in the system, which is good for the market.

In a <em>free market system</em> the forces of demand and supply, decide the price of the goods and thereby the output adjustments. The consumers are free to decide the demand and producers are free to decide the product the supply of goods.

Hence, it can be said that <em>the purpose of a free-market system is to allow consumers and producers to make their own decisions.</em>

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is considering permanently shiutting down a department that has an annual contribution margin of $25,000 and $75,000 in annual f
Sergeu [11.5K]

Answer:

Avoidable fixed costs = $75,000 - $19,500 = $55,500

Segment margin = Contribution margin - Avoidable fixed costs

Segment margin = $25,000 - $55,500

Segment margin = -$30,500

If the department were eliminated, the company would eliminate the department's negative segment margin of $30,500

5 0
3 years ago
Matching Question Match the following activities to their effect on the general ledger accounts. Allocate indirect labor Allocat
Zepler [3.9K]

Answer:

Activities                         General Ledger accounts

Allocate indirect labor         <em>Credit Factory wages payable</em>

Pay factory property tax      <em>Debit Factory Overheads</em>

Purchase materials              <em>Debit Raw material inventory</em>

Use direct materials            <em>Credit Raw material inventory</em>

Complete job                       <em>Debit Raw material inventory</em>

Deliver job                            <em>Credit Raw material inventory</em>

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5 0
3 years ago
The spread of the coronavirus in the U.S. has had negative effects on the U.S. economy. GDP growth rate went negative (-5.8%) in
Oksi-84 [34.3K]

Answer:

The Coronavirus pandemic took the world by surprise and most people were not ready for the far reaching quarantine measures that were put in place. These measures along with the general fear of the disease meant that Consumers were demanding less of goods and services which had the effect of shifting the Short Run Demand curve to the left.

The world also saw travel restrictions put in place which were a serious blow to international commerce because suppliers found it hard to source goods. This reduced the supply of goods and services which also meant that the Short Run Aggregate Supply Curve shifted to the left as well.

The New Equilibrium led to a way lower output at Y¹ which is shows why GDP growth fell into negative.

As a result of decreased output and quarantine measures, companies could not afford to keep their employees and had to let go of a lot of them. This is why the Unemployment rate went up as well.

3 0
3 years ago
Assume you have $2,000 in a savings account at the beginning of the year and the price level is equal to 100. If the price level
SVEN [57.7K]

Answer:

$1,667.67

Explanation:

Given:

Balance in savings account at the beginning of the year = $2,000

Price level at the beginning of the year = 100

Price level at the end of the year = 120

Anything that is worth $120 in the beginning of the year is worth $100 at the end of the year.

Anything worth $1 in the beginning is worth 100/120 at the end.

So, $2,000 is worth \frac{100}{120}\times2,000 = $1,667.67 at the end of the year.

Real value of savings is close to $1,667.67.

6 0
3 years ago
Digital Fruit is financed solely by common stock and has outstanding 40 million shares with a market price of $20 a share. It no
Marina CMI [18]

Answer:

Digital Fruit

The expected market price of the common stock after the announcement is:

$20 per share.

Explanation:

Outstanding number of shares = 40 million

Market price of outstanding shares = $20 a share

Total market capitalization = $800 million

Debts introduced = $310 million

Market capitalization after the debt issue = $490 million ($800 - 310 million)

Number of shares bought back = $310 million /$20 = 15,500,000

Outstanding number of shares after the buy-back = 40 million minus 15.5 million

= 24,500,000 shares

Expected market price of the common stock after the announcement

= $490,000,000/24,500,000

= $20 per share

3 0
2 years ago
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