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4 years ago

Why is the profit motive considered an incentive in a market system?

1 answer:

dsp734 years ago

7 0

Inventive is to make more money because businesses can make more profit where money is expected.
Minimize costs and maximize revenues. .

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A business operated at 100% of capacity during its first month and incurred the following costs: Production costs (10,000 units)

RoseWind [281]

Answer:

d.$38,000

Explanation:

The computation of the inventory amount is shown below:

= (Total cost and expenses amount ÷ number of units produced) × unsold units

= ($380,000 ÷ 10,000 units) × 1,000 units

= $38,000

All other information which is given in the question is not relevant. Hence, ignored it

We simply divide the total cost and expenses amount with the production units and then multiply it by unsold units

4 0

4 years ago

Blanchard Company manufactures a single product that sells for $ 180 per unit and whose total variable costs are $ 126 per unit

Nuetrik [128]

Answer:

Part 1

<u>Income Statement at 15,600 units</u>

Sales ($ 180 x 15,600) $2,808,000

Less Variable Costs ($126 x 15,600) ($1,965,600)

Contribution $842,400

Less Fixed Costs ($842,400)

Net Income $0

Part 2

$3,278,000

Explanation:

Break even (units) = Fixed Cost ÷ Contribution per unit

= $ 842,400 ÷ ($ 180 - $126)

= 15,600 units

<u>Assume the company's fixed costs increase by $ 141.000</u>

Break even (units) = Fixed Cost ÷ Contribution per unit

= ($ 842,400 + $ 141.000) ÷ ($ 180 - $126)

= 18,212 units

Break even Revenue = 18,212 x $ 180 = $3,278,000

6 0

3 years ago

Let's break it down into more technical terms, Demand work like this, it is the prices that the consumers are willing and able t

kiruha [24]

Answer:

-Income of buyers

-Consumer expectation

-Taste of consumers

-Price of the goods or services

-Price of related goods or services

Explanation:

Income of buyers: When there is a rise in income of buyer then demand would increase. Also when there is a fall in buyer's income, demand would decrease.

Consumer expectation: If consumers perceive that there would likely be an amount increase in price of certain commodities then demand for such commodities would increase now.

Taste of consumers: If the taste, preference or emotions of buyers changes in favour of a product then there would be increase in demand for such product and vice versa.

Price of the goods or services: The higher the price of a product, the lower the quantity demanded and the lower the price, the higher the quantity demanded.

Price of related goods or services: When there is an increase in the price of goods that are related, demand for the goods with lower price will increase

5 0

3 years ago

What is not part of maturity?

Lynna [10]

Being dependable is something that every person can choose to do, whether they are mature or not.

Hope this helps! <3

7 0

4 years ago

Read 2 more answers

When a country that exported a particular good abandons a free-trade policy and adopts a no-trade policy, A. producer surplus de

lyudmila [28]

Answer:

A) producer surplus decreases and total surplus decreases in the market for that good.

Explanation:

When a country adopts a no trade policy, producer surplus decreases, consumer surplus increases, and total economic surplus decreases.

Total producer surplus deceases, because the quantity produced will be greater than the quantity demanded by the domestic market which will result in lower prices (which increases consumer surplus). But the extra consumer surplus is not enough to offset the lost producer surplus, therefore, the total economic surplus will decrease.

This is specially true if we are talking about small economies or large producers. E.g. due to the US - China trade war, American farmers couldn't sell their products to Chinese customers which resulted in an over stock, and a great portion of their total income was slashed.

3 0

3 years ago