1answer.
Ask question
Login Signup
Ask question
All categories
  • English
  • Mathematics
  • Social Studies
  • Business
  • History
  • Health
  • Geography
  • Biology
  • Physics
  • Chemistry
  • Computers and Technology
  • Arts
  • World Languages
  • Spanish
  • French
  • German
  • Advanced Placement (AP)
  • SAT
  • Medicine
  • Law
  • Engineering
aev [14]
3 years ago
15

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 .

You might be interested in
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:

C

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
Read 2 more answers
Other questions:
  • ___ requires creditors to provide borrowers with a complete written account of credit terms and costs.
    7·1 answer
  • A $200 petty cash fund has cash of $20 and receipts of $177. The journal entry to replenish the account would include a credit t
    14·1 answer
  • Pension plan assets were $1,200 million at the beginning of the year and $1,252 million at the end of the year. At the end of th
    8·1 answer
  • Social media has evolved in such a way that users expect to use SM applications without paying for them. SM firms want to build
    7·1 answer
  • "According to the law of demand, with everything else being equal, the quantity demanded for a good or service will ____________
    14·1 answer
  • Two important trends in the labor force participation rates of adults aged 20 and over in the United States since 1948 are the​
    7·1 answer
  • Altex Inc. manufactures two products: car wheels and truck wheels. To determine the amount of overhead to assign to each product
    12·1 answer
  • What would be you KPIs as the finance and human Resource officer?
    7·1 answer
  • the level of reserves (depositor funds held back from making loans) is very important in determining the money supply.
    14·1 answer
  • wayne incurs a $2,000 medical bill. if his health policy has a $1,000 deductible and an 80/20 coinsurance percentage, how much w
    9·1 answer
Add answer
Login
Not registered? Fast signup
Signup
Login Signup
Ask question!