All categories

4 years ago

Which statements describe characteristics of pure competition? Check all that apply.

2 answers:

4 0

The characteristics that describe pure competition are:
- Many sellers involved in the competition and none of them had the power to influence the price.
- Buyers also couldn't influence the price.
- It is fairly easy to come and compete in the market
- The commodities that offered in the market are similar in type and price.

stich3 [128]4 years ago

3 0

Pure competition describes a market where their is a wide range of competitors selling the same products. Since they are all competing and selling the same products, they are directly competiting with each other all of the time. Pure competition is also known as perfect competition because it makes the market a perfect and pure competition.

You might be interested in

Step2247 [10]

Answer: "systematic review" .
___________________________________________________

7 0

4 years ago

What is the change in net income if fixed cost of $20,000 can be avoided and Frannie could rent out the factory space no longer

Veseljchak [2.6K]

Answer:

Note The full question is attached as picture below

1). Purchasing cost = 10,000* $18

Purchasing cost = $180,000

Making cost = Direct material + Direct labor + Variable overhead

Making cost = $65,000 + $55,000 + $30,000

Making cost = $150,000

Difference in cost (Per unit) = ($180,000-$150,000) / 10,000\

Difference in cost (Per unit) = $3

Change in net income = $180,000 - $150,000

Change in net income = $30,000 (Decrease)

2. Purchasing cost = 10,000*$18

Purchasing cost = $180,000

Making cost = Direct material + Direct labour + Variable overhead + Fixed overhead

Making cost = $65,000 + $55,000 + $30,000 + $20,000

Making cost = $170,000

Difference in cost (per unit) = ($180,000 - $170,000) / 10,000

Difference in cost (per unit) = $1

Change in net income (decrease) = $170,000 - $180,000

Change in net income (decrease) = $10,000

3. Purchasing cost = $180,000 - $20,000

Purchasing cost = $160,000

Making cost = Direct material + Direct labour + Variable overhead + Fixed overhead

Making cost = $65,000 + $55,000 + $30,000 + $20,000

Making cost = $170,000

Change in net income = $170,000 - $160,000

Change in net income = $10,000 (increase)

6 0

3 years ago

Pomona Corporation issued 60,000 shares of $3 par value common stock at $21 per share and 9,000 shares of $30 par value, ten per

aleksandrvk [35]

Answer:

Dr Cash 2,025,000

Cr Common stock 180,000

Cr Preferred stock 270,000

Cr Additional paid-in capital - common stock 1,080,000

Cr Additional paid-in capital - preferred stock 495,000

( to record the issuance of common stock and preferred stock)

Dr Treasury stock 46,000

Cr Cash 46,000

(to record repurchased of 2,000 common shares at $23 per share)

Dr Cash 42,000

Cr Treasury stock 34,500

Cr Additional paid-in capital ( Treasury stock) 7,500

( to record 1,500 common stock sold at $28 per share)

Dr Cash 10,000

Dr Additional paid-in capital ( Treasury stock) 1,500

Cr Treasury stock 11,500

( to record 500 common stock sold at $20 per share)

Explanation:

*Issuance:

Cash receipt = Common stock unit price x number of common stock issued + Preferred stock unit price x number of preferred stock issued = 2,025,000

Common stock account and preferred stock account will be recorded as par value x number of stock issued. Thus: Common stock account = 60,000 x 3 = 180,000; Preferred sock account = 9,000 x 30 = $270,000

Additional paid-in capital common stock account balance and Additional paid-in capital preferred stock account balance each is equal to the difference between unit sell price and par value times number of stock issued. Thus: Common stock account = 60,000 x 18 = 1,080,000; Preferred sock account = 9,000 x 55 = $495,000.

* Repurchased:

Cash spent on repurchased = no of repurchased x repurchased unit price = 2,000 x 23 = $46,000

Cash receipt ( Debit) = no of common stock sold x unit selling price = 1,500 x 28 = $42,000

Treasury stock will be credited at the amount equal : repurchased price x no of common stock sold = 23 x 1,500 = $34,500

The difference will be credited into Additional paid-in capital ( Treasury stock) $7,500

Cash receipt ( Debit) = no of common stock sold x unit selling price = 500 x 20 = $10,000

Treasury stock will be credited at the amount equal : repurchased price x no of common stock sold = 23 x 500 = $11,500

The difference will be debited into Additional paid-in capital ( Treasury stock) $1,500.

7 0

3 years ago

Bill is the owner of a house with two identical apartments. He resides in one apartment and rents the other apartment to a tenan

Mnenie [13.5K]

Answer:

B. $2,600

Explanation:

The computation of the net rental income is shown below:

= Monthly rental payments × total number of months in a year - (utilities + maintenance & repairs + insurance) × percentage - depreciation expense

= $550 × 12 months - ($3,600 + $900 + $500) × 50% - $1,500

= $6,600 - $2,500 - $1,500

= $2,600

Since only one apartment is on rent so we considered the expenses of the building at 50% not full value and the same is applied above

5 0

3 years ago

When you buy a car with a bank loan who owns that car? Why?

Nookie1986 [14]

YOU technically own the car but if you fail to make the payments the bank can repossess it

5 0

3 years ago