All categories

3 years ago

In the absence of any government regulation on price, if a firm has no power to set price onits own, one can safely conclude

Business

1 answer:

EleoNora [17]3 years ago

6 0

Answer:

B) there are many firms in the industry.

Explanation:

Firms that have no power to set price on its own are known as price takers.

An example of firms that are price takers are perfect competition.

In a perfect competition, there are many buyers and sellers of homogenous goods. Prices are set by the forces of demand and supply.

Because there are many sellers of homogenous goods, sellers cannot influence the price of their product. If they increase the price of their product, the quantity demanded would fall to zero.

I hope my answer helps you.

You might be interested in

The Whistling Straits Corporation needs to raise $70 million to finance its expansion into new markets. The company will sell ne

viktelen [127]

Answer:

2,557,065 shares

Explanation:

Offer price = $30 per share

Underwriters Charge : 8%

If the company's underwriters sells new shares at the $30 per share issue price, Whistling straits corporation will receive:

offer price x (1 - underwriters charge)

= $30 × (1 - 0.08) = $27.60

The number of shares that needs to be sold will be:

$\frac{amount needed + administrative expenses}{27.60}$

$\frac{70,000,000 + 575,000}{27.60}$

= 2,557,065.217

≈ 2,557,065

Therefore number of shares to be issued will be = 2557065 shares

7 0

3 years ago

Spartan Corporation estimates that it will incur $200,000 of total manufacturing overhead cost at an estimated activity level of

bagirrra123 [75]

Answer:

Applied manufacturing overhead is $4,000

Explanation:

Given,

Total manufacturing overhead = $200,000

Activity level = 10,000 DLH

Predetermined overhead rate = $\frac{Manufacturing\ overhead\ cost}{Activity\ level}$

= $\frac{200,000}{10,000}$

=$20

Manufacturing overhead applied = predetermined rate × time required

= 20 × 200

= $4,000

Therefore, manufacturing overhead of $4,000 is applied to the job.

3 0

3 years ago

ABC Company's production budget for October is based on 500 units. Standard unit cost for raw materials is $130 per unit ($10 pe

melisa1 [442]

Answer and Explanation:

The computation is shown below;

a. Raw material price variance is

= (standard price - actual price) × actual quantity

= ($10 - $11) × ($69,300 ÷ $11)

= ($10 - $11) × 6,300

= $6,300 unfavorable

b. The raw material usage variance is

= (Standard quantity - actual quantity) × standard price

= (525 × 13 - 6,300) × $10

= $5,250 favorable

In this way it should be calculated

3 0

3 years ago

Refer to the following lease amortization schedule. The five payments are made annually starting with the beginning of the lease

babymother [125]

Answer and Explanation:

Lease Cash Effective Decrease in Outstanding

Payment Payment Interest Balance Balance

$ 34,600

1 $ 8,000 $ 3,460* $ 4,540** $ 26,600

2 $ 8,000 $ 2,660 $ 5,340 $ 21,260

3 $ 8,000 $ 2,126 $ 5,874 $ 15,386

4 $ 8,000 $ 1,539 $ 6,461 $ 8,925

5 $ 8,000 $ 893 $ 7,108 $ 1,818***

6 $ 2,000 $ 182 $ 1,818 $ -

*34600 x 10%

**8000-4540

***8000-7108

Interest rate = interest on second lease payment/outstanding balance after 1st payment x 100

Interest rate = 2660/26600 x 100

Interest rate = 10%

5 0

3 years ago

Pepsi Cola has entered into a long-term contract with a South African beverage business. The contract calls for the South Africa

Helen [10]

Answer:

<u>Licensing </u> is the correct answer.

Explanation:

Licensing is defined as a trade agreement between a company that gives another company authorization to manufacture its product by contract and payment of royalties for the use of the right to use the trademark.

Companies generally license: design, patents, trademarks, copyrights and others whose purpose is to assist in increasing profitability and expanding business.

Despite being a very profitable strategy worldwide, product licensing is not crucial to a company's success, despite the ease of marketing a product or brand already consolidated and valued by the consumer, it is necessary to ensure compliance in production processes. and focus on marketing and sales.

8 0

3 years ago