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3 years ago

If the market demand for the product increases, in the short run a purely competitive firm:

Business

1 answer:

TiliK225 [7]3 years ago

8 0

Answer: D) Will earn higher profits or experience smaller losses as a result of change in the market

Explanation:

Perfect (pure) competition is a market form with very large no. of buyers (firms) & sellers, homogeneous products , uniform price , perfect information about prices .

So , in such case - firms are only 'price takers' from the industry price maker.

Increase in market demand for the industry product will shift the downward sloping market demand curve rightwards & firm's horizontal demand /AR / MR curve (horizontal because of uniform price & perfectly elastic demand) upwards .

This increase in marginal / average revenue will increase the perfect competition firm's profit or reduce its losses .

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Following is Stanley Black & Decker’s income statement for 2016 (in millions): STANLEY BLACK & DECKER, INC. Income State

LekaFEV [45]

Answer:

Gross profit Margin 37.41%

Explanation:

The gross profit margin is the quotient between the gross profit and the sales:

$\frac{gross \: profit}{sales} = $gross profit margin$

$\frac{11,406.9 - 7,139.7}{11,406.9} =\\\frac{4,267.2}{11,406.9}$

Gross profit Margin 0,374089 = 37.41%

4 0

3 years ago

Allied Paper Products, Inc., offers a restricted stock award plan to its vice presidents. On January 1, 2021, the company grante

vitfil [10]

Answer:

1. $80,000,000

2. (The Journal entries can be found below)

Explanation

1. Fair value per share x shares granted = million fair value of award

=$5×$16,000,000 = $80,000,0000

The total compensation cost pertaining to the restricted shares is $80,000,000

2. Journal entries as at December 31, 2021. ($ in millions)

Dr Compensation expense ($80 million ÷ 2 years) 40

Cr Paid-in capital—restricted stock 40

Journal entries as at December 31, 2022. ($ in millions)

Dr Compensation expense ($80 million ÷ 2 years) 40

Cr Paid-in capital—restricted stock 40

Dr Paid-in capital—restricted stock 80

CrCommon stock (16 million shares x $1 par) 16

Cr Paid-in capital—excess of par (remainder) 64

3 0

3 years ago

A market price:________.

trasher [3.6K]

Answer:

Explanation:

Sellers market! Sellers decide what will be the market price for their goods.

Buyers can and cannot agree with the proposed price.

If they agree, sellers will up their prices next year

If the buyers do not agree we will have a sale going on

Easy as that

7 0

3 years ago

On April 2 a corporation purchased for cash 6,000 shares of its own $13 par common stock at $26 per share. It sold 4,000 of the

maxonik [38]

Answer:

Explanation:

The journal entries are shown below:

a. Treasury stock A/c Dr $156,000 (6,000 shares × $26)

To Cash A/c $156,000

(Being the purchase of treasury stock is recorded)

b. Cash A/c Dr $116,000 (4,000 shares × $29)

To Treasury Stock A/c $10,4000 (4,000 shares × $26)

To Paid in capital - Treasury stock $12,000

(Being treasury stock is sold at higher price and the remaining amount would be credited to the paid in capital account)

c. Cash A/c Dr $44,000 (2,000 shares × $22)

Paid in capital - Treasury stock $8,000

To Treasury Stock A/c $52,000 (2,000 shares × $26)

(Being treasury stock is sold at lower price)

5 0

3 years ago

The next dividend payment by Dizzle, Inc., will be $2.85 per share. The dividends are anticipated to maintain a growth rate of 5

devlian [24]

Answer:

10.78%

Explanation:

The next dividend payment for Dizzle incorporation is $2.85

The growth rate is 5%

Current stock price is $49.30

Therefore the required return can be calculated as follows

= dividend payment/stock price + growth rate

= 2.85/49.30 + 5/100

= 0.0578 + 0.05

= 0.1078 × 100

= 10.78%

3 0

3 years ago

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