Answer:
D. they will be unable to earn higher-than-normal profits in the long run.
Explanation: A monopolistic competition is a form of imperfect Competition where many firms that are located within a give market are known to offer similar products to the markets that are not enough to qualify them as a perfect close Substitute (the Purchase of one of the close Substitute does not necessarily prevent the purchase of another). in this type of imperfect Competition the possibility of a barrier to entry or exit is generally low.
Answer:
Option C. $480,000
Explanation:
The reason is that the consideration (Services of memberships which has monetary value) of the contract to deliver the subscribers has been delivered by the Pemco Enterprise which was active their member account and let them enjoy the services which they provide so the sales would be the amount that the company is legally entitled to receive after delivering the consideration of the contract and is $480,000 ($260 * 2000 memberships).
Answer:
the amount of depreciation for Year 1 is $3,948
Explanation:
Step 1 : Determine Cost of Equipment
<em>Cost according to IAS 16 means purchase price plus other costs directly incurred in bringing the asset to location and condition of use as intended by management.</em>
Purchase Price $31,000
Installation and testing $2,800
Total Cost $ 33,800
Step 2 : Determine the depletion rate
Depletion rate = (Cost - Salvage Value) ÷ Estimated Production
= ($ 33,800 - $5,600) ÷ 100,000 units
= 0.282
Step 3 : Determine the Depreciation Expense
Depreciation Expense = Depletion rate x Units Produced
= 0.282 x 14,000 units
= $3,948
Conclusion
the amount of depreciation for Year 1 is $3,948
I think the answer is: a shift from ADI to AD2 and a movement to point B with a higher price level and higher output.
D
Answer:
Arrange the investments in order from the highest risk and return potential to the lowest risk and return potential:
A. property
B. bonds
C. starting a business
D. mutual funds
Solution:
C. starting a business
A. property
D. mutual funds
B. bonds
Explanation:
Investments are the exchanges of income during one period for assets that are expected to earn income in future periods. It is the act of committing capital now in order to obtain future earnings. The risk and return calibration depends on one's personal circumstances and risk appetite.
Some investments offer higher returns with great growth potentials and higher risks while others offer lower returns with lower risks.
Starting a business has the highest risk and return potential. The risk is that you may not realise any return. However, if you are successful in the business, you can get the highest return ever.
Property investments either by building new property, buying built property, or investing in property investment fund may also yield so much returns but the risks are higher than other investments in this class. There is no guarantee that prices of property will not fall so dramatically that you sustain big losses. There is always need to insure your property against disasters like fire.
Mutual funds are professionally managed funds whereby money is pooled from different investors in order to buy stocks, bonds, etc. with long-term horizon. It has higher risk profile than investing in bonds as an individual, because you could recoup some returns in bonds as interests are paid periodically.
Bonds are debt securities to a government or business with the promise of repayment and period interests. They are generally risk-free investments with lower returns because of the guaranteed repayment.
