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3 years ago

Price is constant to the individual firm selling in a purely competitive market because

Business

1 answer:

Ulleksa [173]3 years ago

3 0

Answer:

Option C - each seller supplies a negligible fraction of total supply.

Explanation:

Price is constant to the individual firm selling in a purely competitive market because each seller supplies a negligible fraction of total supply.

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Suppose the price elasticity of demand is relatively elastic and the price elasticity of supply is relatively inelastic in a spe

Rzqust [24]

Answer:

c. producers

Explanation:

Since it is given in the question that the price elasticity of demand is relatively elastic but the price elastic of supply is relatively inelastic but if the excise tax is imposed on the goods so the greater burden of the tax would be on the producers as the supply is inelastic so the producers could not changed much but if we compare to the consumers, the consumer could change the demand more than before due to the elastic in demand.

So, the correct option is c.

7 0

2 years ago

On October 10, the stockholders’ equity of Sherman Systems appears as follows. Common stock–$10 par value, 77,000 shares authori

Vikki [24]

Answer:

See the explanation below:

Explanation:

1. Prepare journal entries to record the following transactions for Sherman Systems

a. Purchased 5,500 shares of its own common stock at $30 per share on October 11.

Details Dr ($) Cr ($) 

Treasury Stock (5,500 × 30) 165,000

Cash 165,000

To record the repurchase of own common stock

b. Sold 1,125 treasury shares on November 1 for $36 cash per share.

Details Dr ($) Cr ($)

Cash (1,125 × 36) 40,500

Treasury Stock (1,125 × 30) 33,750

Paid-in Capital from Sale of Treasury Stock 6,750

To record the sale of treasury stock.

c. Sold all remaining treasury shares on November 25 for $25 cash per share.

Details Dr ($) Cr ($) 

Cash (4,375 × 25) 109,375

Paid-in Capital from Sale of Treasury Stock 6,750

Retained Earnings 15,125

Treasury Stock 99,000 (4,375 × 30) 131,250

To record the sale of the remaining treasury shares

Kindly note that there is a balance of $6,750 in the Treasury Stock Paid-in Capital account. Since it is utilized, the remaining deficit will show in Retained Earnings.

2. Prepare the stockholders' equity section after the October 11 treasury stock purchase.

Details $

77,000 issued authorized common stock–$10 par value 770,000

Paid-in capital in excess of par value, common stock 241,000

Retained earnings 904,000

Treasury stock (165,000)

Total stockholders’ equity 1,750,000

3 0

3 years ago

You plan to save $2,400 a year and earn an average rate of interest of 5.6 percent. How much more will your savings be worth at

mixas84 [53]

Answer:

If the deposits are made at the beginning of the year, the future value will increase by $18,821.1.-

Explanation:

Giving the following information:

Annual deposit= $2,400

Interest rate= 5.6%

Number of periods= 40

First, we will calculate the future value when the deposits are made at the end:

FV= {A*[(1+i)^n-1]}/i

A= annual deposit

FV= {2,400*[(1.056^40) - 1]} / 0.056

FV= $336,091.14

Now, if the deposits are made at the beginning:

FV= {A*[(1+i)^n-1]}/i + {[A*(1+i)^n]-A}

FV= 336,091.14 + [(2,400*1.056^40) - 2,400]

FV= 336,091.14 + 18,821.10

FV= $354,912.24

Difference= 354,912.24 - 336,091.14

Difference= $18,821.1

If the deposits are made at the beginning of the year, the future value will increase by $18,821.1.-

8 0

3 years ago

Sarah’s Organic Soap Company makes organic liquid soap. One of the raw materials for her soaps is organic palm oil. She needs 90

Nuetrik [128]

Answer:

$1905

Explanation:

Here we will have to calculate Economic Order Quantity to lower the ordering ordering and holding cost as much as we can. So here we will use the following formula to calculate the best number of units that we should order, which is as under:

Economic Order Quantity = SquareRoot (2 * Annual Demand * ordering cost per order / Holding cost per unit per year)

Here

Annual Demand = 900kg of palm oil per day * 52 weeks * 5 day a week / 7

Annual Demand = 900 * 52 * 5 / 7 = 33,429

And

Ordering cost per order = $57 per order

Annual holding cost per unit per year is 20% of $5.25 per kg which is $1.05.

So by putting values, we have:

Economic Order Quantity = Square Root (2 * 33,429 * 57 / 1.05)

Economic Order Quantity = 1905 kgs

4 0

3 years ago

Your parents will retire in 19 years. They currently have $300,000, and they think they will need $1 million at retirement. What

Svetlanka [38]

Answer:

rate = 6.54%

Explanation:

we need to find the rate at which a capital of 300,000 becomes 1,000,000 in a period of time of 19 years.

So we build the following equation:

$300,000 (1+r)^{19} =1,000,000$

$(1+r)^{19} =1,000,000 \div 300,000$

$r=\sqrt[19]{1,000,000 \div 300,000}-1$

rate = 0.065417765 = 6.54% after rounding

This will be the rate my parent will require to generate 1,000,000 in 19 years with their current savings of 300,000.

3 0

2 years ago