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3 years ago

Economists normally assume that the goal of a firm is to

Business

1 answer:

Elina [12.6K]3 years ago

6 0

Answer:

Profit Maximisation

Explanation:

Profit is the difference between total revenue (receipts) from sale & total cost (expenditure) on production.

Total Revenue = Price x Quantity ; Total Cost = Average Cost x Quantity

Economists study all the producer behaviour, based on assumption that : Goal of firm is Profit Maximisation.

Maximising Profit implies maximising the difference between Total Revenue & Total Cost [ TR - TC] . This further leads to producer equilibrium rule of Marginal Revenue = Marginal Cost [MR = MC] ; i.e additional revenue per unit sold equals additional cost per unit production.

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1.4. Discuss the role of the Competition Commission why it cannot deal with the

jolli1 [7]

Answer:

The Competition Commission is a statutory body constituted in terms of the Competition Act, No 89 of 1998 by the Government of South Africa empowered to investigate, control and evaluate restrictive business practices, abuse of dominant positions and mergers in order to achieve equity and efficiency in the South ...

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3 years ago

Donna independently owns and operates Punkin's Pies, a small business with about 30 employees. She is happy with the size of her

Nataly_w [17]

Donna independently owns and operates Punkin's Pies, a small business with about 30 employees. She is happy with the size of her business and the average profits it generates. From this scenario, Donna's business can be considered an entrepreneurial venture - False.

<u>Explanation:</u>

A person starting a new business with limited amount of resources and plans is called an Entrepreneur. He is the person who takes responsibilities for the risk and rewards that are associated with that business. The idea of the business must be unique and it should focus only on newer products.

A small business and an entrepreneurial ventures differs from each other although they have similar roles. A small business generally deals with a familiar and an product and services that are already established. The persons of small business usually have risks that are already known. In an entrepreneurial venture, only new products and unknown risks are present.

3 0

3 years ago

Suzette has received an order for 1,500 boxes of nuts per week for the next 3 months. If she expects the trend in the marginal p

S_A_V [24]

Answer:

18,000 boxes

Explanation:

1500×3×4 or

1500×12

8 0

3 years ago

Effective teamwork and high productivity are good indications of positive....

Aleks [24]

Effective teamwork and high productivity are good indications of positive Productivity goals.

6 0

3 years ago

Mango Company applies overhead based on direct labor costs. For the current year, Mango Company estimated total overhead costs t

erastovalidia [21]

Answer:

Balance for the Factory Overhead account: 19,000 credit

Explanation:

We will first, calculate the overhead rate based on the predetermination overhead rate:

$\frac{Cost\: Of \:Manufacturing \:Overhead}{Cost \:Driver}= Overhead \:Rate$

The total manufacturing cost will be distributed over the cost driver. In this case, labor cost:

360,000/180,000 = 2 overhead rate

Then, we calculate the applied overhead 203,000 x 2 = 406,000

Now, the balance for factory overhead account:

Actual overhead: 387,000 debit

payable, accumulated depreicaiton and other 387,000 credit

WIP 406,000 debit

Applied Overhead 406,000 credit

Balance:

406,000 - 387,000 = 19,000 credit

8 0

3 years ago