Answer:
$750
Explanation:
The formula for determination of beginning inventory is given below:
Cost of goods sold=opening inventory+purchases-closing inventory
Cost of goods sold=$2,000
Purchases=$2,250
closing inventory=$1,000
Opening inventory=Cost of goods sold+closing inventory-purchases
=2,000+1,000-2,250
=$750
Answer:
The effective annual rate is 5.57%
Explanation:
The interest rate that is actually earned or paid on investment or loan including the compounding effect over a given period of time. It is also known as rate.
Effective interest rate = [ ( 1 + r/m )^m ] - 1
Effective interest rate = [ ( 1 + 5.42%/12 )^12 ] - 1
Effective interest rate = [ ( 1 + 0.0542/12 )^12 ] - 1
Effective interest rate = 0.055567 x 100
Effective interest rate = 5.5667% = 5.57%
Answer: Most economist believe that prices are flexible in the long run but many are sticky in the short run.
Explanation:
Prices are sticky in the short run because producers and buyers take time to adapt to new situations. If there is a shortage of butter, lets say, the economic theory says that the prices will rise because there is less butter ( ceteris paribus = all the other factors remain constant). Actually, buyers and suppliers need time to adapt to the new situation. However, in the long run buyers and suppliers have time to adapt to new situations so prices become more flexible.
Answer:E. a flexible price policy
Explanation:
The flexible price policy is a bargaining system between the buyer and seller to trade together at an agreed price.
The FOB seller factory price policy means where the ownership of the goods transferred to buyer, Robinson's act is only to prevent price discrimenation in the retail industry from the producers, a skimming price policy makes use of dual prices whithin a time interval, a status quo pricing objective is to maintain homogeneous price in the market among the sellers.
Answer:
price equals minimum average total cost
Explanation:
As we know that in the short run, the firms earns the economic profit but in the long run when a new firm is entered into the indusry and there is a market share so the demand of the market is to be shared by each firm due to which the demand would be less
So this represents that price is equivalent to the average total cost
Hence, the last option is correct
