Answer:
(i)New firms will enter the market.
(iii)In the long run, all firms will be producing at their efficient scale
Explanation:
A perfect competition is characterised by many buyers and sellers of homogenous goods and services. Market price is set by the forces of demand and supply.
If firms are earning positive profits, in the long run new firms would enter into the industry and this woold drive positive profits to zero. As a result , firms would be operating at the efficient scale.
I hope my answer helps you
Answer:
Dealers profit comes from the spread primarily. Spread is the differential amount between buying and selling.
Explanation:
Let us assume the price of security X is USD 100 (last trade price)
A dealer will purchase this security at discounted price from the investor say USD 99 and will sell the same security in the market at USD 100, thus earning spread.
Further being market markers, dealers often use multiple strategies to prop up the price of particular security and earn gains on inventory held.
Answer:
The answer is C.
Explanation:
Credit sales is $6,000
Bad debt is 3% of net credit sales which is $180($6,000 x3%)
Creating allowance for doubtful debt entry is one of the prudent method and it tells us that some customers won't pay part of what they are owing. And it is also a contra account that offset bad debt.
According to the accounting rule, debit increases asset and expenses and vice-versa while credit decreases liability, equity, income and vice versa.
So we have have:
Dr Bad debt expense $180
Cr Allowance for Doubtful Accounts $180
If the company enters into an agreement with a winery in Spain to purchase all the red wine the winery produces, this would be a: output contract
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Explanation:</u></h3>
An output contract is an arbitration where one party consents to acquire the complete product that the other party accumulates. Thus, the consumer will obtain all the 'output' the trader executes.
Output contracts can be valuable to consumers when there is conjecture about market supply or demand for a distinct good. Output contracts attend the sale of goods, these sorts of contracts are directed by the Uniform Commercial Code. In the fact of output contracts, the U.C.C. claims that both parties to the contract act in real faith.
