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3 years ago

In a market system, how are the terms of exchange established?

Business

1 answer:

NikAS [45]3 years ago

4 0

Answer:

The forces underlying supply and demand interact to determine a market clearing price

Explanation:

Market is a place or system where person that are seller and buyer who come together for the purpose of sale and purchase the goods.

Types of market are :

Perfect Competition : It is a market in which there are number of sellers and number of buyers selling same commodities or homogeneous product.

Monopoly : It is a form of market in which there is single seller , he has full control over price.

Monopolistic Competition : It is a form of market in which there are number of sellers and number of buyers but all the sellers are selling different type of product.

Oligopoly : it is a form of market in which there are few big firms but a large number of buyers .

The market is also known as price system.The market system is very efficient . Market system creates a good competition.

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Elise Corporation has the following sales mix for its three products: A, 20%; B, 35%; and C, 45%. Fixed costs total $400,000 and

Aneli [31]

Answer:

800 units of product A must be sold for break-even

Explanation:

Given, weighted-average contribution is $100.

Total break-even units = Total fixed cost / Weighted-average contribution

Total break-even units = $400,000 / $100

Total break-even units = 4,000 units

Product A break-even = 4,000 x 20%

Product A break-even = (800 units)

Hence, the correct answer is 800 units.

6 0

3 years ago

Expenses recognition Sun Microsystems uses the accrual basis of accounting and recognizes revenue at the Lime it sells goods or

s2008m [1.1K]

Answer:

Sun Microsystems

Amount of Expenses to recognize during the months of June, July, and August in each of the following transactions:

a. Rent Expense = $30,000

b. Utility Expense = $4,650

c. Supplies Expense = $9,700

d. Property Taxes = $1,800

e. No expense is recognized.

f. Salary Expense = $4,500

g. Advertising Expense = $6,600

Explanation:

Data and Calculations:

a. Rent Expense = $180,000/12 * 2 = $30,000 Rent Prepaid $150,000

b. Utility Expense $4,560

c. Supplies Expense $9,700 ($12,600 - $2,900)

d. Property Taxes = $7,200 *3/12 = $1,800

e. No expense is recognized for the advance payment for delivery van.

f. Salary Expense $4,500

g. Advertising Expense $6,600

4 0

3 years ago

Nathalie is willing to apply for a car loan. She is 18 years old, still lives at home with her parents and has a part-time job d

Eduardwww [97]

Answer:

Nathalie provides a cosigner on her loan

Explanation:

In the case when an inidvidual co-signs the loan so the individual is become obligated in a legal way to repay the full loan with respect to nathalie when she is not able to pay the amount. Also the loan officer would permitted in that case when the co-signer has the stable kind of job or the source of revenue.

So, nathalie not sign the car of the parent as the collateral as it required the parent consent

So the above should be the answer

8 0

3 years ago

Ivanhoe provides environmentally friendly lawn services for homeowners. Its operating costs are as follows. Depreciation $1,500

Sonbull [250]

Answer:

Explanation:

To start with, we need to get the value for total fixed cost and total variable cost

Total fixed costs = Depreciation + Advertising + Insurance

= $1,500 + $350 + $2,770

= $4,620

Total variable costs per unit = Weed and feed materials + Direct labor + Lawn Fuel

= $17 + $9 + $2

= $28 per lawn

We also need to compute the contribution margin ratio

= Sales per unit - Variable cost per unit / Sales per unit

= (70 - 28) / 70

= 0.6

= 60%

Therefore;

1. Break even sales

5 0

3 years ago

An ______ in the interest rate (r), ceteris paribus, will cause planned investment to ______.

faltersainse [42]

Answer:

An increase in the interest rate (r), ceteris paribus, will cause planned investment to decrease.

Explanation:

An increase in the interest rates determined by the Federal Reserve would imply that the American financial system would pay larger sums of money for direct investments in banks or bonds, which would stop capital investment outside the public financial system, that is, in stocks. private, real estate investments, etc., since money would be invested at a higher profit in safer sectors of the market.

7 0

3 years ago