Answer:
The correct answer is option B.
Explanation:
In a perfect competition firms are price takers and have only normal profits. On the contrary, a monopoly firm are price makers and can have positive profits.
The consumer surplus gets reduced in monopoly and the producer surplus is greater. The profits in the monopoly firm shows the transfer of surplus of benefits from consumers to the producer.
So, option B is the correct answer.
Answer: False
Explanation: The expenses appear directly in the income statement and indirectly in the balance sheet.
It is useful to always read both the income statement and the balance sheet of a company, so that the full effect of an expense can be seen.
Total manufacturing costs=direct material+direct labor+manufacturing overhead
Calculate direct labor
Let direct labor be x
120%=1.2
1.2x=180000
Divide both sides by 1.2
X=180,000÷1.2
X=150,000 direct labor
Total manufacturing costs=
120,000+150,000+180,000
=450,000...answer
Hope it helps!
Answer:
The point at which revenue matches the combination of fixed and variable costs
Explanation:
Revenue is the total receipts from sales. Cost is the total expenditure on sales.
Break Even point is the point at which firm is at 'no loss, no profit situation'. It is earning revenues just sufficient to cover various (fixed & variable costs) of the business.
Mathematically : It is a point where Total Profit = Total Revenue - Total Cost = 0. Hence implying TR = TC.
Graphically, it is the point at which TR, TC curves intersect. Before B.E.P ; TR < TC & firm incurs losses. At B.E.P ; TR = TC, no profit, no loss. After B.E.P ; TR > TC firm earns profit.