Free market economies allocate resources through demand and supply with minimal government intervention.
private ownership- all factors of production within the economy are owned mainly by private individuals and organizations.
Free enterprise- owners of factors of production and producers of a goods and services a free to produce what they want through the market forces of demand and supply.
Competition- <span>Companies have a competitive drive, thus better quality goods and more variety of products which are at lower prices. (more productively efficient )</span>
Answer:
C) Quantity demanded will decrease, quantity supplied will increase, and a surplus will result
Explanation:
Price floor is the least amount a good or service can be sold. A price floor is usually set above equilibrium price.
When a price floor is enacted, it usually discourages demand because prices are usually set higher and encourages supply.
As a result, quantity demanded will decrease, quantity supplied will increase, and a surplus will result.
I hope my answer helps you.
Answer:
Stewart will probably have to accept a higher level of risk
.
Explanation:
Hence, a large-risk investment is one in which the risks of failure, or of losing some or all of the asset, are greater than the average.
- These opportunities often offer investors the ability for greater returns in exchange for embracing the degree of risk associated with that.
- In saving account he gets 3% rate of return but also gets a lower rate of risk and does not earn much.
If he invests his money in higher-risk fields like shares, he may get a higher profit.
Answer:
I tried to order the information and prepared the following table:
Product A Product B Product C
Unit Selling Price = $650 $200 <u>e)$2,300</u>
Unit Variable Costs = $390 <u>c)$108</u> <u>f)$1,495</u>
Unit Contribution Margin = <u>a)$260</u> $92 $805
Contribution Margin Ratio = <u>b)40%</u> d)<u>46%</u> 35%
contribution margin ratio = (revenue - cogs) / revenue or
contribution margin ratio = contribution margin / revenue
Answer:
The cost recorded for the equipment=$66,500
Explanation:
When dealing with the total cost of an equipment we take the purchase cost and other additional associated costs that come with the equipment. This can be expressed as;
T=P+A
where;
T=total cost
P=purchase cost
A=additional costs(transportation cost+sales tax+installation cost)
In our case;
T=unknown
P=$60,000
A=(1,000+3,000+2,500)=$6,500
replacing;
T=60,000+6,500=66,500
The total cost=$66,500
The cost recorded for the equipment=$66,500
