A) Producing the combination of goods most desired by society
Answer: a. The patent is an intangible so it is amortized for cost recovery
Explanation:
Just as Depreciation exists for the wearing and tearing of tangible Assets, so does AMORTIZATION exist for Intangible Assets like goodwill, patents, licenses, copyrights and logos.
It follows essentially the same process as Depreciation and the useful life estimation is usually discretionary because some Intangible Assets can give benefits forever such as logos.
Generally though, only Intangible Assets with estimable useful lives are amortized such as Patents and Trademarks.
Answer:
risk aversion.
Explanation:
Have you ever heard "A bird in the hand is worth two in the bush"?
It relates to safe investments or activities that yield known returns, instead of simply trying to go after more birds that you might or might not catch.
Tom knows that he can sue the title company and earn a lot of money, but he also knows that he might lose the case and instead of getting some money will have to spend a lot of his money in legal fees. Since he dislikes the risk of losing both the suit and his own money, he decided to accept the company's settlement.
Answer:
Bauble to be sold for break even = 5484
Explanation:
Sales Mixture = 16000 : 8000 = 2:1 2 : 1
Bauble Trinkets
Selling Price P.u (16/16) : (16/8) = 1 2
Variable Cost (6400/16000) : ( 11520/16000) = (0.4) (0.72)
Contribution margin Per unit (Sp-Vc) = 0.6 1.28
Com-posit Cm 2 baubles 1 trinkets = 0.6*2+1.28*1 = 2.48
Fix Cost Total = 3200+3600 = 6800
Break-Even units = 6800/2.48 = 2741
Baubles 2742*2 = 5484*0.6 = 3290.4
Trinkets 2742*1 = 2742*1.28 = 3509.7
Answer:
a and b
Explanation:
A perfect or pure competition is characterized by many buyers and sellers of homogenous goods and services. Market prices are set by the forces of demand and supply. There are no barriers to entry or exit of firms into the industry.
In the long run, firms earn zero economic profit. If in the short run firms are earning economic profit, in the long run firms would enter into the industry. This would drive economic profit to zero.
Also, if in the short run, firms are earning economic loss, in the long run, firms would exit the industry until economic profit falls to zero.
Due to maximum competition in a pure competition, it is the lowest cost to the buyer.
Pure competition is efficient because, goods are priced at equilibrum
