Answer:
1. True
2. False
Explanation:
A perfect competition is characterised by many buyers and sellers of homogenous goods and services. Market prices are set by the forces of demand and supply. There are no barriers to entry or exit of firms into the industry.
In the long run, firms earn zero economic profit. If in the short run firms are earning economic profit, in the long run firms would enter into the industry. This would drive economic profit to zero.
Also, if in the short run, firms are earning economic loss, in the long run, firms would exit the industry until economic profit falls to zero.
An example of perfect competition is the market for farm produce.
I hope my answer helps you
Answer:
Explanation:
This could be due a number of factors.
1 Externality effect
2 There could also be market failure, when property rights are not properly defined.
Externality is the effect of a third party on a property right, when all parties cannot come to an agreeable resolution on properties this could lead to inefficient use of land.
Also when the property rights are not put in place its difficult to come to a resolution that satisfies all parties.
Answer:
Below:
Explanation:
An extension strategy is a practice used to increase the market share for a given product or service and thus keep it in the maturity phase of the marketing product lifecycle rather than going into decline. Extension strategies include rebranding, price discounting and seeking new markets.
Hope it helps...
It’s Muska..≧◔◡◔≦
Answer:
D) budgets are a total amount and standards are a unit amount.
Explanation:
For each given choice in the question explanation is provided below as to why its or its not the correct answer.
A) only budgets contribute to management planning and control.
Both budgets and standards contribute in the planning and control are of the company. Therefore, this option is incorrect.
B) budgets but not standards may be used in valuing inventories.
Once gain both are used for valuing inventory, this is due to the fact that budget contains details gathered in standard costing. Therefore, this option is incorrect.
C) budgets but not standards may be journalized and posted.
Both the budget and standard are journalized and posted in the accounting system. Therefore, this option is incorrect.
D) budgets are a total amount and standards are a unit amount.
As standards are unit amounts which contributes in preparing the budget which are total amounts.
Hence, option D is correct.