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Sauron [17]
4 years ago
11

The profit motive is important to a market economy because it

Business
2 answers:
Shkiper50 [21]4 years ago
7 0

Answer:

encourages people to open businesses and invent new products

The profit motive drives people to risk opening new businesses and creating new products and services. Competition drives businesses to provide better products and services at lower prices. Should a business owner not provide a quality product, that owner risks losing customers to a competitor. In the real world, there are varying degrees of competition

nataly862011 [7]4 years ago
3 0
Profit motive is a characteristic of free market economies, where the 
<span>sole intention of producers is to make profit. This results in both </span>
positive and negative results. <span>The importance of profit motive in a market economy is that all firms </span><span>are established on its basis.</span>
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Cost of Goods Sold account is debited and Finished Goods Inventory is credited for A) purchase of goods on account. B) the sale
Firlakuza [10]

Answer:

B) the sale of goods to a customer.

Explanation:

When goods are sold to a customer, the cost of goods sold account is debited by the same value that the finished goods inventory is credited.

For example, suppose a company sells $1,000 worth of goods to a customer, and the sales price is $1,200. The customer pays by cash the full value of the goods. The journal entry would be:

Account                                    Debit           Credit

Cash                                         $1,200

Sales Revenue                                             $1,200

Cost of Goods Sold                $1,000

Finished Goods Inventory                           $1,000

7 0
3 years ago
Determine how the equilibrium price and equilibrium quantity in the market for coffee changes if the price of tea, a substitute
kkurt [141]

Answer:

Equilibrium price = Decreases

Equilibrium quantity = Indeterminate

Explanation:

Here, we suppose that tea and coffee are substitute goods and we know that substitute goods have a positive cross price elasticity of demand.

So, if there is a fall in the price of tea then as a result the demand for coffee decreases which shifts the demand curve of coffee leftwards.

And, there is a fall in the price of coffee beans due to the better weather condition and coffee beans are used as an ingredient for producing coffee.

Hence, there is a fall in the cost of production of coffee which increases the supply of coffee and shifts the supply curve of coffee rightwards.

Therefore, there is a fall in the equilibrium price level of coffee and the effect of these shifts on the equilibrium quantity is indeterminate because that will be dependent upon the magnitude of the shifts of both the curves.

5 0
3 years ago
Businesses may not use false statements to convince you to buy a product
Alex_Xolod [135]
False do u really think after wearing a certain makeup everyone will instantly like u no this is called a misleading ad
4 0
4 years ago
Accidents with trucks carrying hazardous wastes are fairly common. Suppose regulators enact a rule requiring that the perpetrato
expeople1 [14]

Answer:Yes, it will.

Explanation:

Although there are existing law regulating the companies that transport hazardous materials( both the State law and the Federal law) in the United States of America.

Some States for example,the state of Texas does not allow truck drivers to get a hazardous materials endorsement until the driver has completed a security assessment and obtained TSA clearance.

If there is a law that saction perpetrators of such an accident be liable for a sum of momey equal to the average damages of all such accidents in the industry the company will never want to into loss and they will make sure to take the socially efficient amount of precaution against such accidents.

8 0
3 years ago
When voluntary exchange takes place, both parties gain from the exchange.
Sliva [168]
True because both are learning something from each position they exchanged on
7 0
3 years ago
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