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Mice21 [21]
3 years ago
5

HOW PERFECTLY COMPETITIVE FIRMS MAKE OUTPUT DECISIONS?

Business
1 answer:
AnnZ [28]3 years ago
3 0

Answer:

The companies in the perfect competition opt to lower prices that generates maximum profits using the price demand relation.

Explanation:

The customers opt to products that are easy to access and are priced competitive which means the switching of customer to buy competitors in such markets are are very easy. Just take the example of Pepsi and Coke. The person who wants Coke would buy Pepse in instance if shopkeeper doesn't have Coke. This shows that the switching cost is very low and the price the competitor charges is almost the same. So this means that in such market the supplier would have to charge a price that brings higher sales to them every shopkeeper stores it in its shelve because it generate higher value for them too.

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Accounts receivable arising from sales to customers amounted to $40,000 and $55,000 at the beginning and end of the year, respec
Allushta [10]

Answer: The answer is e. $215,000.

Explanation: Based on the information provided in the question, see the cash flows statement below:

XYZ Cash Flows Statement

Net income                                                         $180,000

Increase in account receivable                           (15,000)

Increase in accounts payable                              50,000

Cash flows from operating activities             $215,000

  • Note that the purchase of equipment of $50,000 cash would not be considered under cash flows from operating activities but would rather be considered under cash flows from investing activities.
  • Increase in accounts receivable means outflow of cash while increase in accounts payable means non-payment of debt, that is, inflow of cash.
7 0
3 years ago
Read 2 more answers
On April 31, 2018, Elkhorn Associates borrowed $10 million cash from Colonial Bank and issued a 5-month, noninterest-bearing not
Nady [450]

Answer:

b. Less than the effective interest rate

Explanation:

The stated discount rate on this loan is Less than the effective interest rate

As the note is noninterest-bearing note, the stated discount rate on this loan is less than the effective interest rate.

4 0
3 years ago
Butler Corporation is considering the purchase of new equipment costing $30,000. The projected annual after-tax net income from
kobusy [5.1K]

Answer:

($3,100)

Explanation:

Net cash flows each year = Projected annual after-tax net income + Depreciation

Net cash flows each year = $1,200 + $10,000

Net cash flows each year = $11,200 each year

Total value of inflows in 3 years = Net cash flows each year * Annuity factor of (10%,3 years)

Total value of inflows in 3 years = $11,200 * 2.4018

Total value of inflows in 3 years = $26,900

Net Present value = Present value of inflows - Cash outflow

Net Present value = $26,900 - $30,000

Net Present value = ($3,100)

So, tnet present value of the machine is ($3,100).

7 0
3 years ago
The goal of this exercise is to demonstrate your understanding of the total logistic cost factors, which are expenses to be mini
brilliants [131]

Answer and Explanation:

Stockouts logistics cost factor-

Safeway,

Kmart

Transportation logistics cost factor-

Hyundai,

Ford

Inventory logistics cost factor-

Toyota,

Frito Lay

Return goods handling logistics cost factor-

Phillips,

Costco

Warehousing and materials handling logistics cost factor -

Coca Cola,

Walgreens

Order processing logistics cost factor-

SC Johnson,

Chrysler

logistics cost factors are cost factors associated with logistics ( concerned with acquisition, storage and transportation ofresources) based on the kind of business or kind of products or services a company is into. From the above we see that logistics cost factors vary as the companies are into different products or services and industries and therefore face different logistics costs associated with their production and or delivery. Every company aims to achieve logistics efficiency through minimizing costs associated with their logistics costs factors example Hyundai with transportation logistics cost factors would aim to reduce it's logistics cost factors and maximise profits by its locating it's manufacturing plant close to where it imports parts for it's vehicle manufacturing so as to reduce cost of transporting vehicle parts to manufacturing plant

7 0
3 years ago
6. In 2008, the exchange rate between the US dollar and New Zealand dollar was NZ$1.71/$; in 2009, the exchange rate between the
Naddika [18.5K]

Answer:

No, a currency carry trade with positive profit can not be conducted.

Explanation:

The currency carry trade is the trading strategy where investor funding from lower-yield currency to invest in higher-yield currency with expectation to earn positive profit from the yield differences between the two currencies.

However, this strategy only works when the difference is big enough to compensate for the depreciation ( if any) of the higher-yield currency against the lower-yield currency.

With the given information, the strategy will not work because the depreciation of NZ$ against US$ after one-year is too big to be compensated for the yield difference.

For specific example, suppose the strategy is conducted, in 2008, an investor will borrow, for example, US$1 at 4.2%, exchange it to NZ$1.71. Then, invest NZ$1.71 at 9.1%.

In 2019, an investor will get NZ$1.86561 (1.71 x 1.091). The, he/she exchanges at the 2019 exchange rate, for US$1.36176 (1.86561 / 1.37). While at the same time, he will have to pay back 1 x 1.042 = US$1.042 => The loss making in US$ is US$0.32.

6 0
3 years ago
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