Answer:
(d) $26,000
Explanation:
The computation of the direct material cost is shown below:
= Fabric used to upholster furniture + Lumber used to build product + Freight in (raw materials)
= $8,000 + $15,000 + $3,000
= $26,000
The other cost which is mentioned in the question is related to direct labor, overhead cost, etc. Thus all other costs should be ignored.
Answer:
C) The opportunity cost of going to the party is both the movie and the study time.
Explanation:
Opportunity costs are the costs (or lost benefits) from choosing one alternative activity or investment over another.
In this case, if you decide to go to the party on Saturday night, you will not be able to go to the movies and you will not be able to study for your exam.
I think the correct answer from the choices listed above is the third option. Price ceilings are often established in order to keep products affordable for consumers. <span>A </span>price ceiling<span> is a government-imposed </span>price<span> control or limit on how high a </span>price<span> is charged for a product. </span>
Answer:
D. A monopoly that results when one firm is able to produce at a lower cost than multiple firms, giving large firms with higher levels of output an advantage over smaller competitors.
A. Municipal Power Light, the local supplier of electricity.
Explanation: A natural monopoly is a monopoly enjoyed by a firm due to its large nature through which it is able to enjoy Economies of scale and produce at a reduced cost which other companies are unable to meet up with.
WITH A NATURAL MONOPOLY, A FIRM HAS A CONTROL OVER THE PRICE OF THE PRODUCT PRODUCED AND SERVICE RENDERED AS THERE ARE NO CLOSE SUBSTITUTE.
The municipal Power light, the local supply of power is an example of a firm that can enjoy Natural monopoly.
Patronage principle based its hiring and promotion system on political reasons while the merit principle employed the idea that hiring should be based on entrance examination and promotion. One of the major disadvantage of the patronage principle is that, it may end up employing people who are not qualify for the job. Merit principle choose based on qualifications.
