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3 years ago

Are perfectly competitive markets allocatively allocatively efficient in the long run?

Business

1 answer:

antiseptic1488 [7]3 years ago

7 0

Yes, because firms produce where the marginal benefit to consumers equals the marginal cost of production.

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During its first year of operations, Silverman Company paid $15,085 for direct materials and $10,200 for production workers' wag

elena-s [515]

Answer:

$4,550

Explanation:

First, we need to calculate the product cost per unit

Product cost per unit = Total production costs / Units produced

= ($15,085 + $10,200 + $9,200) / 6,050 units

= $5.7 per unit

Cost of goods sold = $5.7 × 3,700 units

= $21,090

Net income = Sales - Cost of goods sold - Operating expenses

= ($8.2 × 3,700) - $21,090 - $4,700

= $30,340 - $21,090 - $4,700

= $4,550

6 0

3 years ago

Economic bads are items

sdas [7]

Economic bads for which the desired quantity is less than what nature provides at a zero price.
Those are items people would pay to avoid or get rid of. They are the opposite of an economic good
Examples of economic bads include: pollution, noise, unhealthy food, risk, losss of resources,...

7 0

3 years ago

Andrea is a real estate agent, however, she does not have a license as required by statute. Andrea sells a piece of property to

faust18 [17]

The answer is "A) If the licensing statute is primarily a regulatory statute, (designed to protect the publicity), Andrea cannot collect her commission."


Regulatory statutes refers to the licensing statutes sanctioned to ensure general society. unlicensed people can't recuperate installment for giving administrations that an authorized individual is required to give.

4 0

3 years ago

Iaci Company makes two products from a common input. Joint processing costs up to the split-off point total $42,000 a year. The

eimsori [14]

Questions

Iaci Company makes two products from a common input. Joint processing costs up to the split-off point total $42,000 a year. The company allocates these costs to the joint products on the basis of their total sales values at the split-off point. Each product may be sold at the split-off point or processed further. Data concerning these products appear below: Product X Product Y Total Allocated joint processing costs $22,400 $19,600 $42,000 Sales value at split-off point $32,000 $28,000 $60,000 Costs of further processing $11,600 $25,300 $36,900 Sales value after further processing $44,800 $53,200 $98,000 Required: (a) What is the net monetary advantage (disadvantage) of processing Product X beyond the split-off point?

Answer:

Net advantage from further processing $1,200 

Explanation:

A company should process further a product if the additional revenue from the split-off point is greater than than the further processing cost.

Also note that all the joint costs incurred up to the split-off point are irrelevant to the decision to process further any of the .

Net monetary advantage of product X

Sales revenue after the split-off point 44,800

Sales revenue at the split-off point (32,000)

Additional sales revenue 12,800

Further processing cost (11,600)

Net advantage from further processing 1,200

Net advantage from further processing $1,200 

4 0

3 years ago

McGregor Company allows customers to pay with credit cards. The credit card company charges McGregor 3% of the sale. When a cust

Natalka [10]

Answer:

McGregor would Debit Service Fee Expense for $6.

Explanation:

Data provided in the question:

Fee charged by the credit card company = 3% of the sales

Amount of payment made by the customer to McGregor for the service = $200

Now,

The amount of fees charged on the transaction bu the credit card company

= 3% of $200

= 0.03 × $200

= $6

Since, this fees is an expense for the McGregor

Hence,

McGregor would Debit Service Fee Expense for $6.

5 0

3 years ago

Are perfectly competitive markets allocatively allocatively efficient in the long​ run?

Are perfectly competitive markets allocatively allocatively efficient in the long run?