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White raven [17]
3 years ago
9

Suppose ABC Dairy is one firm competing in the perfectly competitive market for milk. Now suppose ABC Dairy decides to produce o

nly organic milk. Which of the following best describes the effects of this change in the market?
a. ABC Dairy will still be a price taker because it is still operating in a perfectly competitive market.
b. ABC Dairy will have a monopoly on organic milk due to very high entry barriers.
c. The other dairy firms will produce with excess capacity, but ABC Dairy will be efficient.
d. ABC Dairy is differentiating its product and will likely be able to charge a higher price than before.
Business
1 answer:
Sedbober [7]3 years ago
8 0

Answer:

The correct option is D.

Explanation:

In a perfectly competitive market, there are many sellers selling the same product and in this market, firms have easy entry and exit, products are identical in nature from one seller to another and also the sellers are price taker.

So, in this case, ABC firm compete in this market for milk but later on they changed their production to produce organic milk and this change would be described by the effect that ABC firm is differentiating its product from market and they will have a chance to charge high price than earlier.

Therefore, the correct option is D.

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In the Month of March, Digby Corporation received orders of 128 units at a price of $15.00 for their product Daze. Digby uses th
Montano1993 [528]

Answer:

$1,290

Explanation:

The revenue to be recognized in march is dependent on if the revenue recognition criteria was met in march. These criteria are

  • the cost of goods delivered or service rendered can be measured reliably
  • good/services were delivered/rendered in the month

This is irrespective of whether cash was collected or not under the accrual method.

Given that Digby delivers 86 units in March at a price of $15.00, revenue to be recognized

= 86 * $15

= $1,290

6 0
3 years ago
Define the following terms in your own words?
meriva
Activity is something you do for fun 
responsibility is something you have to take care of yourself 
accomplishment is something you ill or have accomplished
skill is something that you were born to be able to do 
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3 0
3 years ago
When working with international firms, U.S. businesses Multiple Choice expect socially responsible behavior from their business
Brilliant_brown [7]

When working with international firms, U.S businesses expect socially responsible behavior from their business partners.

<h3><u>Why do U.S businesses increasingly focus on international businesses?</u></h3>

American businesses are aware that doing business abroad will boost productivity and broaden their population, which will promote economic expansion. Since the beginning of time, there have been numerous international exchanges, and American businesses now recognize the advantages of offering their services abroad.

To cut costs, some US companies relocate abroad. To grow their business, other companies venture abroad. Many companies can successfully operate on a global scale.

You can learn more about international business using this link:

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4 0
2 years ago
Following is Stanley Black &amp; Decker’s income statement for 2016 (in millions): STANLEY BLACK &amp; 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
Merone Company allocates materials handling cost to the company's two products using the below data:
wariber [46]

Answer:

d. $86,400.00

Explanation:

The computation of the  total materials handling cost allocated to the prefab barns is given below:

Total Materials Handling Cost is $228,300

Total is

= 6600 ×860 + 9600 × 360

= $5,676,000 + $3,456,000

= $9,132,000

Allocation Rate = Total Materials Handling Cost ÷ Total direct labor hours  

= $228,300 ÷ $9,132,000

= $0.025

Now

Total Materials Handling Cost allocated to prefab barns is

= Allocation Rate×  direct albor hours for Modular Homes

= $0.025 ×  $3,456,000

= $86,400

6 0
3 years ago
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