Answer: MRTS =1
Explanation
Since the inputs of the firm are perfectly substitute
MRTS =DC/DL
Where DC = change in capital
= change labour
This means that the graph of labour on x axis and capital on y axis is a straight line graph
Answer:
Monopolistic competition is a type of competition that occurs in a competitive market without identical producers.
Explanation:
If after preparing and posting the closing entries for revenues and expenses, the income summary account has a debit balance of $25,000. the entry to close the income summary account will be: a debit of $25,000 to owner capital.
<h3>Income summary</h3>
The debit balance of the amount of $25,000 in the income summary indicate that the company expenses is higher than the revenues generated by the company by $25,000.
Based on this the loss incurred will be taken out of the company owner's equity account by reducing it through a debit entry.
Therefore the income summary account has a debit balance of $25,000. the entry to close the income summary account will be: a debit of $25,000 to owner capital.
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Answer:
The first transaction will be recorded as a note receivable, whereas the second transaction will be recorded as an account receivable.
Explanation:
The first transaction is a note recievable which is a credit instrument that requires the debtor to pay interest. The period for repayment bis usually above 30 days. Blair Automotive made the first customer sign a written promise to pay in full after six months with an annual interest rate of 3.5%.
The second transaction is an account recievable which are claims for payment that is raised by a business for delivery of products and services, it is payable within an agreed time frame. Accounts receivable does not attract interest payment. Blair Automotive sends the second customer a bill within the next two weeks, due within 30 days of receipt of the bill.
When using the specific identification inventory method, the cost of goods sold equals the "revenues from the goods sold."
This is because the specific identification inventory method calculates each unit of n item in an inventory from when it enters the inventory until it leaves it.
The specific identification inventory method is used by many industries such as automobiles, furniture, jewelry, etc.
This method is mostly used when each unit of items can be specified easily, either through serial number, stamped receipt date, or other means of identification.
Hence, in this case, it is concluded that the specific identification inventory method is a good method to use in certain industries.
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