The assumption in perfect competition that there is an easy entry and exit from the market implies that firms will make a zero economic profit in the long run.
<h3>Why do firms make a zero economic profit?</h3>
In a pure competition, companies are allowed to freely enter and leave.
They take advantage of this to enter a market when prices are high and economic profit is being made.
As more firms enter, the economic profit keeps decreasing as prices decrease until this profit gets to zero and then turns to economic losses.
At this point, some firms will leave the market to stop making losses. When they do, the supply will decrease which leads to prices rising once more.
The cycle will then repeat itself and keep the companies at a zero economic profit in the long run.
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Answer:
Activity-based department costs
Explanation:
Activity Based Costing refers to a method : that allocates the cost of activities in organisation among produced goods & services, in proportion to that activity consumed by each good & service.
The model is a better representative of particular goods & services production costs, unlike conventional cost methods - that divide the activity cost among each good or service equally. It assigns more indirect (overhead) costs into direct costs compared to Conventional Costing.
So, the approach states that overhead to products, supporting department costs - are referred to as <u>Activity Based</u> Department Costs
Answer: D
Explanation:
The ability to make sound, timely decisions during an emergency is critical. Effective decision making can ,Avoid tragedy ,help manage incidents.
build community trust and support.
help the community recover from an event more quickly. Conversely, poor decision making or the absence of decisions potentially can result in injury or death to victims and/or responders.
Answer:
c. $59,000
Explanation:
The cash flow statements shows the effect of the company's activities on cash. These activities are classed into operating, investing and financing activities.
When an asset is sold, the amount received from the sale is an inflow of cash to the company. This inflow is recognized in the investing segment of the cas flow statement.
Hence, the amount that should be reported as a source of cash under cash flows from investing activities is $59,000.
