Answer:
b. some firms exit, industry supply decreases, market price rises.
Explanation:
A perfect competitive industry is characterised by many buyers and sellers of homogenous goods and services. There are no barriers to entry or exit of firms.
If firms are making economic loss is the short run, in the long run, firms leave the industry. This leads to a fall in supply and prices rise as a result. In the long run, firms in a competitive industry earn zero economic profit.
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Before introducing yourself, it is imperative that you fully inform yourself about the two cases to be discussed, and what the effects of each have on the organization. It is also important to make a hypothetical situation of each case and to observe probable causes and effects that will assist in creating the probable scenario and in decision making.
Answer:
Celebruity has a unit contribution margin of $35 ($100-$62-$3), currently.
Celebrity will have a unit contribution margin of $42.25 =($110-$62-$2.75) whit the changes.
This is an increase of $10.25 in the unit contribution margin.
Sales volume remains to be the same at 150 units ($15000 / $100), so the effect on contribution margin is $1537.50 = (150 X $10.25).
The contribution margin increase equals the net income increase, $1537.5 because the costs remain the same
Answer:
D) Audited by a certified professional accounting firm.
Explanation:
The Securities and Exchange Commission (SEC) requires that publicly traded corporations file audited quarterly financial reports and annual audited financial reports. The Sarbanes-Oxley Act (2002) is the law that established the current external auditing rules imposed by the SEC. It also established legal responsibilities for CEOs and CFOs regarding the financial statements. If they fail to meet them or provide false information, they may face criminal charges and end in jail.
If a country were to place a limit on the number of cars that could be imported in a year, it would be an example of a Quota kind of trade regulation.
A quota is a trade limitation put in place by the government that restricts how much or how much money may be spent on items that a nation can import or export at one time. Quotas are used by nations in international trade to control the amount of trade that occurs between them and other nations. A quota is a government-imposed restriction on the amount of products or services that may be exported or imported over a given time period, or in rare circumstances, the value. A country's ability to import a certain number of items is restricted by an import quota. For instance, the US might set a 2 million annual import cap on Japanese cars. Quotas will aid domestic suppliers by lowering imports.
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