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3 years ago

In perfect competition:

Business

1 answer:

nadezda [96]3 years ago

7 0

Answer:

the market demand curve is downward sloping while demand for an individual seller's product is perfectly elastic.

Explanation:

Perfect competition is a competition system characterized by a large number of firms offering the same type of product. This is a competitive model where none of the bidders has the ability to change the price, (they are price takers) so that if there is any attempt to raise the price, the bidder will lose all market share as consumers will buy from other market price providers. This means that demand is completely elastic - sensitive to price changes. The market demand curve is downward sloping on a chart where quantity is on the horizontal axis and price on the vertical axis. Thus, the higher the price, the lower the quantity demanded and the lower the price, the greater the quantity demanded.

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(True) or (False)? The most common method companies use is double-declining balance, because it allows companies to recognize fo

Marrrta [24]

Answer:

false

Explanation:

my teacher said it was false but she could be wrong

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3 years ago

Mason Holdings is expected to pay dividends of $.20 every quarter for the next three years. If the current price of Mason stock

Nesterboy [21]

Answer:

Price of the stock at the end of three years =$34,27

Explanation:

Price of the stock today = $\frac{D1}{(1+ke)^1}+\frac{D2}{(1+ke)^2}+\frac{D3}{(1+ke)^3}+\frac{P3}{(1+ke)^3}$ .

Where D1 is the total dividend earned in year 1 =$0.2*4=$0.8

D1=D2=D3=$0.8

therefore, from the given information

$$22.60=\frac{0.8}{(1+0.18)^1} + \frac{0.8}{(1+0.18)^2} +\frac{0.8}{(1+0.18)^3} + \frac{P3}{(1+0.18)^3}$ .

Solve for P3, which is the price of the stock at the end of three years =$34,27.

8 0

3 years ago

The transactions listed below are typical of those involving New Books Inc. and Readers’ Corner. New Books is a wholesale mercha

ArbitrLikvidat [17]

Answer:

(A) Inventory increases by 595,000

(B) Inventory decreases by 14,500

Inventory balance: 595,000 - 14,500 = 580,500

Explanation:

We are asked for Readers' Corner

(A) Reades purchase at 595,000 so we use this value. Reader has no informaiton about the cost of New Books.

(B) there is an allowance for 14,500 the inventory account will decrease immediately as it works with perpetual invnetory method

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4 years ago

Artem, the president of instructor services, told one of his new hires that "managers at this company are encouraged to solve th

RSB [31]

This is actually called a decentralized authority.

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3 years ago

Lindy Company's auditor discovered two errors. No errors were corrected during 2020. The errors are described as follows:

vladimir1956 [14]

Answer:

1) We need to reverse the sales entry because the sale actually took place during 2020, not 2021. Since the sale was made in 2020, it should have increased net profit (retained earnings) during 2020, so we now correct both mistakes with the following entry:

Dr Sales revenue 9,100 (sales revenue decreases)

Cr Cost of goods sold 4,100 (COGS decreases)

Cr Retained earnings 5,000 (retained earnings increase)

2) The journal entry must record the depreciation expense during 2021, and must decrease net profits 2020 (retained earnings), depreciation expense per year = $21,000 / 4 = $5,250:

Dr Retained earnings 5,250 (retained earnings decrease)

Dr Depreciation expense 5,250 (expenses decrease)

Cr Accumulated depreciation 10,500 (asset carrying value decreases)

8 0

3 years ago