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Answer:
Perfect competition is only theoretical, it does not exist in the real world. Not even commodities markets like corn, soybean, oil, etc., work in a perfectly competitive way. First of all, taxes, tariffs and subsidies exist. Also, one of the conditions for perfect competition is that all buyers and sellers must have immediate access to perfect information, and that is virtually impossible.
Perfect competition markets act like benchmarks since real life markets will never be able to reach perfect allocation of resources, but some markets get really close to doing so.
Answer:
Explanation:
Defective units = 16000
Cost of manufacture =92800
When sold as scrap
Revenue = 16000*3= $48000
Net income = $48000
When reworked and sold
Cost of rework = 4.7* 16000= 75200
Revenue = 8.8*16000= 140800
Net income = 65,600
It is better to rework and sell.
Incremental income on reworking and selling is 17,600
Answer:
$7,667,100
Explanation:
Step 1 : Determine Depletion Rate
Depletion Rate = Cost ÷ Estimated units
= $8,519,000 ÷ 849,300 tons
= $10.03
Step 2 : Determine the Depletion Cost
Depletion Cost = Depletion Rate x units mined
= $10.03 x 764,370 tons
= $7,667,100
Conclusion :
Parscale's cost depletion for the year is $7,667,100
Answer:
Hi.
Explanation:
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