Answer: Market Efficiency
Explanation:
It is important that the Government as a regulator should not get involved in acts that would protect individual institutions from failure because that would defeat the whole purpose of a competitive industry.
If a government is known to directly involve itself in the protection of institutions from failure, efficiency in institutions may become low because of the lack of fear of failure as companies believe that should they run into bad times, they will simply be bailed out by the government so there is no need for them to maintain a competitive edge.
This can lead to a situation where we have companies performing sub optimally in an economy which can only act to reduce the Economic growth of a country.
Government institutions usually have such backing and in a lot of countries are prone to failure. Look at the Bamangwato Concessions Limited (BCL) mine in Botswana for instance that kept failing and refusing to improve it's efficiency because they could always run back to the government for a bailout. Their position eventually became so untenable that bankruptcy was the only option.
Answer:
addition to retained earnings is $34,304
Explanation:
Revenue = $513,000
- Costs <u>= $406,800</u>
Gross Profit = $106200
- Depreciation expense = $43,800
- Interest paid <u>= $11,200</u>
Profit before tax = $51,200
- Tax 33% = $16,896
Profit after tax = $34,304
*Profit after tax is actually addition to Retained earning the dividend payment is made from the Retained earning account after that.
Answer:
1-The four characteristics of the price system are that it is neutral, market driven, flexible, and efficient. It is neutral because prices do not favor the producer or the consumer because the they both make choices that determine the equilibrium price.
2-Why is the price system an efficient allocator of economic resources? Prices are neutral, which means they are equally fair to both consumers and producers. They are flexible which means they can adapt to changing economic conditions. Prices are familiar which means that everyone understands how they work.
3-how do prices serve as signals and incentives to producers to leave a particular market? it showed that when a strong competitor offers similar products for lower prices other producers must also lower their prices. Less efficient companies were driven from the market.
4-demonstrates the effects of competitive pricing because it shows how the company strategically lured customers away from rival producers while still making the highest profit.
Explanation:
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Answer:
1. forced America to produce goods once imported from England ⇒ Embargo Act of 1807: law passed by Thomas Jefferson that prohibited American ships from trading in foreign ports.
2. non-involvement in world affairs ⇒ isolationism: policy that tries to separate a country from getting involved in foreign disputes or political affairs
3. negotiations between labor and management ⇒ collective bargaining: when employers and workers unions discuss wage increases and other working conditions and benefits
4. Alaskan Purchase ⇒ Seward's Folly: Seward's Folly or Seward's Icebox was the term given to the Alaska purchase deal by its opponents who believed Alaska was worthless.
5. battle of San Juan Hill ⇒ Rough Riders: 1st United States Volunteer Cavalry that were led by Leonard Wood and Theodore Roosevelt in the battle of San Juan.
6. combining of corporations ⇒ consolidation: when two corporations merge into one single company.
7. blown up in Havana harbor ⇒ Maine: In 1898 the USS Maine was blown up and sank in Havana, it started the Spanish - American War.
8. Clermont ⇒ Fulton's Folly: Robert Fulton owned the Clermont (AKA Fulton's Folly) was the first steamboat vessel to be used as a commercial way of transportation.
9. interchangeable parts ⇒ standardized parts: The assembly developed by Henry Ford used interchangeable and standardized parts.
Answer:
B. $ 51 per unit
Explanation:
The computation of the unit product cost using variable costing is shown below:
= Direct material per unit + direct labor per unit + variable manufacturing overhead per unit
= $7 units + $26 + $18
= $51 per unit
It recognizes only variable cost like - direct material, direct labor, and variable manufacturing cost. Hence, all other information is ignored
