Answer:
e. does not always lead to high prices.
Explanation:
Profit-maximization pricing means fixing prices so that total revenue is more as compared to total costs. This pricing strategy is used by a monopolist.
It is the short run or long run process by which the price and output level is determined by the firm that can give the maximum profit.
The price per item has been set higher than its total cost of production make to sure that the company makes a profit on each sale. As a result, the company makes a profit on every sale and to reduce risk and uncertainty factors in business operations.
Profit maximization pricing objective <u>does not always lead to high prices</u>.
Answer:
The answer is stated below:
Explanation:
The challenges which one would face and these are:
1. Hiring especially and retaining the top talent.
2. Secure the budget.
3. Economic fluctuations.
4. Trained professionals.
5. Evaluation of ROI (Return on Investment) on activities of the marketing.
When the company or firm faces the limitations grounded on the real world situations then all of the mentioned above will be a challenge for the company. The firm or the company will have to meet the fluctuation which is linked with the economic conditions as well as the currency.
When the assumptions are build as a simulation then the company or the firm will not be in a position to take the risk. The assumption could cause the firm to travel safely in the economy, in order to take or face the challenges the firm should ready to face the risks and have the plans in respect to tariffs, currency and other barriers.
If the firm wants to play safe then should be open to all the fluctuations and prepared to meet the ups as well as downs in the business.
So, assumptions should be made in such a way that they safeguard or protect the company but should not be such that it will limit the company growth.
The amount to be recorded as depreciation expense on December 31, 2021, is (B) $9,590.
<h3>
What is depreciation expense?</h3>
- Depreciation expense is the cost of a depreciated asset for a specific period, and it reveals how much of the asset's value was used up in that year.
- Accumulated depreciation is the entire amount of depreciation expense given to an asset since it was placed in service.
- A business spends $84,000 on new display racks with a useful life of 7 years (84 months) and no residual value.
- The corporation would most likely choose a straight-line depreciation technique, which would result in a $1,000 monthly depreciation expenditure ($84,000/84 months = $1,000 per month).
The straight-line technique of calculating depreciation expense is given below:
- = (Original cost - salvage value) ÷ (useful life)
- = ($173,000 - $8,600) ÷ (10 years)
- = ($164,400,000) ÷ (10 years)
- = $16,440
In this method, the depreciation is the same for all the remaining useful life.
Now for the 7 months, the depreciation expense would be:
- = $16,440 × 7 months÷ 12 months
- = $9,590
Therefore, the amount to be recorded as depreciation expense on December 31, 2021, is (B) $9,590.
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The correct question is given below:
A company purchased factory equipment on June 1, 2021, for $173000. It is estimated that the equipment will have a $8600 salvage value at the end of its 10-year useful life. Using the straight-line method of depreciation, the amount to be recorded as depreciation expense at December 31, 2021, is ______.
(A) $16440.
(B)$9590.
(C)$8220.
(D)$6850.
Answer:
B
Explanation:
Economic base are businesses that generate employment in a community or a geographical area.
Economic base analysis is a theory that posits that activities in an area divide into two categories:
1) Basic industries are those exporting from the region and bringing wealth from outside.
2)Nonbasic industries support basic industries.
The basic industries of a region are identified by comparing employment in the region to national norms.
Answer:
Economic integration agreement is when countries within a particular geographical area decide to remove or relax tariff or non-tariff barriers to trade between themselves and also to coordinate and harmonize their fiscal and economic policies. Free trade area is the simplest form of an economic integration; it is when governments of member countries agree to remove trade restriction between each other and when member countries are given the freedom to determine their own external trade policies towards non-members.
Supporters of free trade area argue that it is beneficial to the country based on the trade creation argument. Trade creation is where high-cost domestic production is replaced by more efficiently produced imports from within the group; that is, more expensive domestic products are replaced by lower priced imports from countries within the group. The trade creation argument is hinged on the fact that a free trade area ensures that trade is generated over and above what would otherwise have happened if there was no integration. Further, the removal of tariffs allows members to specialize in those products for which they have a comparative advantage leading to a variety of cheap imports for domestic consumers, thereby increasing living standards or welfare gains. Trade creation also creates an incentive for high cost domestic producers to cut cost so as to remain competitive thereby enhancing efficiency.
On the other hand, a free trade area is criticized on the basis of trade diversion. This is where trade with a low-cost country outside the group is influenced by higher–cost products supplied from within the group; this results in a less efficient allocation of resources as trade from outside the group is replaced by trade from within the group. Trade diversion could mean that local consumers would have to buy products at less competitive prices. Another argument would be that a free trade area would lead to a removal of tariff between member countries thereby resulting in a cessation of government revenue from tariffs. As opposed to a free trade area, free trade would increase world output and employment, raise quality and lower prices of goods as firms have access to factor inputs; it will also increase world living standards or enhances welfare gains. A free trade agreement only restricts these potential advantages to a particular geographical space.
Explanation:
