All categories

3 years ago

A competitive market produces the economically efficient outcome if the following conditions are met, except Multiple Choice

Business

1 answer:

jarptica [38.1K]3 years ago

5 0

Answer:

The correct answer is (a)

Explanation:

In a competitive market, numerous producers compete to provide homogeneous goods to the customers. As many producers produce homogeneous goods which is why they are price takers, and they produce goods as long as it equals the marginal cost. So, in a competitive market, units are produced for which benefits are equal to the cost.

Marginal cost = Marginal revenue

You might be interested in

g Hochberg Corporation uses an activity-based costing system with the following three activity cost pools: Activity Cost Pool To

iogann1982 [59]

Answer: $2.81 per machine hour

Explanation:

Wages and salaries $ 423,000

Activity cost pools 10%

Allocated amount = 10% of $423000

= 0.1 × 423000

= $42,300

Depreciation = $112,000

Activity cost pools 10%

Allocated amount = 10% of 112,000

= 0.1 × 112000

= $11200

Occupancy 154,000

Activity cost pools 20%

Allocated amount = 20% of 154000

= 0.2 × 154000

= $30800

Total allocated amount = $42300 + $11200 + $30800 = $84300

The cost hour is the machine hour which is 30,000

Rate per machine hour = total allocated amount/machine hour

= 84300/30000

= $2.81 per machine hour

6 0

3 years ago

As of December 31, 2017, Armani Company’s financial records show the following items and amounts. Cash $ 10,000 Accounts receiva

Lelechka [254]

Answer:

December 31, 2017 Balance Sheet

$10,000 Cash

$9,000 Accounts Receivable

$6,000 Supplies

$25,000 TOTAL CURRENT ASSETS

$5,000 Equipment

$5,000 TOTAL NONCURRENT ASSETS

$30,000 TOTAL ASSETS

$23,000 Accounts Payable

$23,000 TOTAL CURRENT LIABILITIES

$23,000 TOTAL LIABILITIES

$1,000 Retained Earnings

$6,000 Capital

$7,000 TOTAL EQUITY

$30,000 TOTAL EQUITY + LIABILITIES

Explanation:

December 31, 2017 Balance Sheet

$10,000 Cash

$9,000 Accounts Receivable

$6,000 Supplies

$25,000 TOTAL CURRENT ASSETS

$5,000 Equipment

$5,000 TOTAL NONCURRENT ASSETS

$30,000 TOTAL ASSETS

$23,000 Accounts Payable

$23,000 TOTAL CURRENT LIABILITIES

$23,000 TOTAL LIABILITIES

$1,000 Retained Earnings

$6,000 Capital

$7,000 TOTAL EQUITY

$30,000 TOTAL EQUITY + LIABILITIES

Income Statement

Consulting Revenue $33,000

Rental Revenue $22,000

Salaries Expenses -$20,000

Rent Expenses -$12,000

Selling and Adm Exp -$8,000

Income Statement $15,000

Retained Earnings Report

Opening retained earnings $ 0,000

Add: Net Income $ 15,000

Subtotal $ 15,000

Less: Withdrawals -$ 13,000

Less: Investment -$ 1,000

Total $ 1,000

8 0

3 years ago

Pet Supply purchased some fixed assets two years ago at a cost of $43,800. It no longer needs these assets so it is going to sel

DiKsa [7]

Answer:

$28,483.4

Explanation:

The computation of the net cash flow is shown below;

Asset cost $43,800

MACRS Rate 0.2 0.32

8760 14016

So total depreciation is

= $8,760 + $14,016

= $22,776

Now

Book Value of the company is

= oriignal value - depreication

= $43,800 - $22,776

= $21,024

And,

Sale price = 32500

So,

Gain is

= $32,500 - $21,024

= $11,476

So,

Tax = 0.35% of 11476

= $4,016

And, finally

Net cashflows is

= Sale price - tax

= $28,483.4

6 0

3 years ago

Read 2 more answers

Happy Friday! How is everyone day so far!?

Delvig [45]

Mines good I’m really exhausted tho and it’s only morning

6 0

3 years ago

Performance reports with more than one cost driver typically have more accurate variances than those based on one cost driver.

Elena L [17]

Answer:

true

Explanation:

I got it right lol

6 0

3 years ago