This can be seen by noting three reasons for economic profit: (1) market control, (2) risk, and (3) innovation. Market Control: One of the most common reasons for economic profit is market control by a firm. A firm has market control if it can exert some degree of influence, or control, over the market price.
Explanation:
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Answer:
$2,600 in the Accounts Receivable Dr./Sales Cr. column and $1,700 in the Cost of Goods Sold Dr./Inventory Cr. column.
Explanation:
If we assume that Maxie's Game World uses a perpetual inventory system, the appropriate journal entries should be:
Date XXX, merchandise sold on credit to client YYY, terms 1/10, n/30
Dr Accounts receivable 2,600
Cr Sales revenue 2,600
Dr Cost of goods sold 1,700
Cr Merchandise inventory 1,700
Answer:
55 legal pads.
Explanation:
The level at which Blackmon Brothers should order more legal pads is the re-order point.
The calculate re-order point, we require
Average daily usage
Delivery lead time
Safety stock is needed.
For Blackmon, Average daily usage will be 165 divided by 15 days
=165/15
=11 legal pads per day.
Lead time is 3 days
Formula for getting the re-order point
= (average daily usage x delivery time) + requires safety stock
For Black man
= (11 x 3)+ (11 x 2)
=33 + 22
=55 legal pads.
They should re-order when they have a balance of 55 legal pads.
Answer:
D) Is the difference between minimum price producers are willing to accept ...... higher the equilibrium price.
Explanation:
Producer Surplus is the difference between - minimum price producers are willing to accept for a product, & the market price. Graphically it is the (triangular) area above the supply curve, & below the market price.
Higher the market price, higher is the consumer surplus.
Answer:
The managers need to understand the importance of data due to the fact that this one affects to the decision making process.
Explanation:
On one hand, the data is the source of the information itself, the data could be good or bad depending on the type of information that a person is trying to get, therefore that a good compilation of data will impact in realiable information. Furthermore, trustfull information means that the decision that needs to be taken will be mostly good because the information is complete and trustfull and therefore the uncertainty will decrease.
On the other hand, the information is the principle and most important resource of a manager due to the fact that decisions are made in a context where the person has o has not enough information to a make a good call. Therefore that leaders need to understand how the data works and how this affect the decision making process.