All categories

4 years ago

In which statement(s) is "supply" used correctly?

Business

1 answer:

Naily [24]4 years ago

5 0

Answer:

Option (b) is correct.

Explanation:

(i) Law of supply states that if there is an increase in the price of the commodity then as a result the quantity supplied for that commodity also increases and if there is a decrease in the price of the commodity then as a result the quantity supplied for that commodity also decreases.

So, there is a relationship between price and quantity supplied not supply.

(ii) If there is an increase in the cost of production of eggs then as a result the producers of egg will reduce the production of eggs. Hence, this will lead to reduce the supply of eggs in the market.

Therefore, the second statement is correct.

You might be interested in

Four companies computed their days' sales in inventory as follows: Company A: 47.2 Company B: 36.5 Company C: 45.1 Company D: 39

Leviafan [203]

The most efficient and effective in managing its inventory is Company B.

<h3>Who is the most efficient?</h3>

The days' sales in inventory is a financial ratio that measures the rate at which a firm is able to sell its inventory in a given year. The lower the ratio, the more efficient a firm is in selling its inventory.

Days' sales in inventory = number of days in a period / inventory turnover

Inventory turnover = cost of goods sold / average inventory

To learn more about financial ratios, please check: brainly.com/question/26092288

#SPJ1

7 0

2 years ago

In a market with 1,000 identical firms, the short-run market supply is the

kompoz [17]

Answer: Option(a) is correct.

Explanation:

Correct Option : Marginal cost curve above average variable cost for a typical firm in the market.

In a market of perfect competition, the shutdown price of the firms will be minimum point of average variable cost. So, there is supply of goods by the firms if the price is equal or above the shutdown point of the firm.

Therefore, the supply curve of the firm is the above part of the MC curve from the minimum point of average variable cost.

8 0

3 years ago

Top Shelf Company builds oak bookcases. Determine whether each of the following is a direct material (DM), direct labor (DL), ma

Veronika [31]

Answer:

(1) Depreciation on factory equipment. ____MOH

(2) Depreciation on delivery trucks. ____ Period Cost

(3) Wood used to build a bookcase. ____Direct Material

(4) Production supervisor’s salary. ____ MOH

(5) Glue and screws used in the bookcases. ____ MOH

(6) Wages of persons who assemble the bookcases. ____Direct Labor

(7) Cost to run an ad on local radio stations. ____Period Cost

(8) Rent for the factory. ____ MOH

(9) CEO’s salary. ____ Period Cost

(10) Wages of person who sands the wood after it is cut. Direct Labor

Period Cost are costs that are not directly involved in the manufacturing costs of a product but are incurred in a particular period. These expenses include advertising and selling expenses.

Direct Materials are material used to make a product . For example wood is a direct material for making shelves.

Direct Labor are the wages paid to the people who work in the production of a product.

Manufacturing Overheads are charges associated with the manufacturing of a product.they are indirect costs of the production like rent of the building etc.

4 0

4 years ago

New Town Instruments is analyzing a proposed project. The company expects to sell 1,600 units, ±3 percent. The expected variable

SOVA2 [1]

Answer:

What is the sales revenue under the worst-case scenario?

$ 125,032

Explanation:

Initial Escenario

TOTAL Income Statement Unit Quantity

$ 1,035,200 Total Net Sales $ 647 1.600

-$ 352,000 Variable Cost $ 220

-$ 64,000 Depreciation Expenses

$ 619,200 Contributing Margin

-$ 438,000 Anual Fixed Costs

$ 181,200 Segment Margin

Worst Case Escenario

Quantity fall 3% from 1,600 to 1,552

Price Fall 2% from $647 to $634

Variable Cost Increase 2% from $220 to $224

Anual Fixed Cost Increase 2% from $438,000 to $446,760

Depreciation Expenses maintained at the same level.

TOTAL Income Statement Unit Quantity

$ 984,061 Total Net Sales $ 634 1.552

-$ 348,269 Variable Cost $ 224

-$ 64,000 Depreciation Expenses

$ 571,792 Contributing Margin

-$ 446,760 Anual Fixed Costs

$ 125,032 Segment Margin

0 0

4 years ago

Given the following information, analyze XYZ Company's liquidity. Year 2013 Total quick assets $30,000 Total current assets $40,

kogti [31]

Answer:

A. They are more liquid than others in their industry.
C. They have sufficient quick assets to pay off short-term debt if needed.

Explanation:

The Acid-test and current ratios are used to measure the liquidity of a company with higher figures meaning more liquidity. XYZ Company has a both a higher acid-test and current ratio so they are more liquid than others in their industry.

The Acid-test and current ratio also enable one to find out if a company is able to pay off its current obligations/ liabilities using current assets. With the acid-test ratio being above one, XYZ is able to pay off short-term debt using quick assets.

6 0

3 years ago