Answer:
The correct answer is a. has no incentive to hold costs down.
Explanation:
Given that in the natural monopoly there is no competition for the characteristic that we have as a company to offer our products at a lower price and with highly competitive quality, then the direct question of pricing will not have really in-depth studies that take into account the competitors' behavior in order to establish direct incentives. Its fixing method is basic and strictly depends on internal issues such as the expected profitability margin, supply, demand and production process.
Answer: B. there is also an excess demand for bonds
Explanation:
When there is an excess supply of money in the economy, there is also an excess demand for bonds.
This is because in his case, rather than holding money, individuals will want to increase their being holdings and therefore, this will lead to the reduction in their holding of money. Equilibrium will further be restored as there'll be reduction in interest rate.
Answer:
$3,475.75
Explanation:
the journal entries required to record the purchases are:
Dr Inventory 5,500
Cr Accounts payable 5,500
Dr Inventory 360
Cr Cash 360
Dr Accounts payable 2,475
Cr Inventory 2,475
Dr Accounts payable 3,025
Cr Cash 2,934.25
Cr Purchase discounts 90.75
Cost of inventory = $5,500 + $360 - $2,475 - $90.75 = $3,475.75
The more supply the lower the price
The higher the demand the lower the supply
The higher price the lower the demand
Answer:
Instructions are below.
Explanation:
Giving the following information:
The current market price of cloth shopping bags is $2.25
Target profit= 60%
First, we need to calculate the cost per unit to reach the target cost.
Target cost= selling price*(1-targert profit)
Target cost= 2.25*0.4= $0.9
Now, if $0.8 is the unitary total cost:
Cost= (0.8*100)/2.25= 35.5%
Profit= 100 - 35.5= 64.5%
<u>The company should manufacture the product because it reaches the target profit per unit.</u>
