Answer:
Zero economic profits in the long run.
Explanation:
In a perfect competition, firms are able to freely enter into, or exit a market.
As more and more firms enter the market, it causes an increase in supply in the long run, which<u> leads to a fall in prices and therefore profits, such that firms will start to earn normal profits or </u><u>zero economic profits.</u>
Answer:
The description is outlined in the clarification segment below, as per the case provided.
Explanation:
- The prevalence of either a lifetime tax on some kind of fixed income has been known to be a long-term perspective including its broader economic impact of taxation since they complement instead of just replace.
- The existing income taxes would raise the quarterly funds to meet, but perhaps the cumulative occurrence of tax would enhance the power to charge for existence.
Answer:
12.5%
Explanation:
expected return = 20.70%
risk-free rate of return is 8.40%
beta of on factor 1 = 1.2
risk premium on the factor 1 = 4.00%
beta of on factor 2 = 0.6
risk premium on factor 2 = x (unknown)
To calculate for the risk premium on factor 2, we use this formula
expected return= (beta of on factor 1 × premium on the factor 1) + (beta of on factor 2 × premium on the factor 2) + risk-free rate of return
20.70% = (1.2 × 4%) + (0.6 x) + 8.40%
0.207 = 0.048 + 0.6x + 0.084
0.207 = 0.132 + 0.6x
0.6x = 0.075
x = 0.125
=12.5%
Answer:
Always higher than manufacturing cost per unit for variable costing.
Explanation:
Absorption costing continuously contains fixed overheads similarly while computing the manufacturing cost.
Conversely, under variable costing only adjustable overheads were included.
Thus, the manufacturing cost under absorption costing method is always higher than variable costing method
Therefore, per unit cost will always be higher under absorption costing than in variable costing.
So, option C is the correct option
Answer:
A. $ 8 comma 730.
Explanation:
The computation is shown below:
For 1 - 30 days
= $61,000 × 2%
= $1,220
For 31 - 60 days
= $44,000 × 5%
= $2,200
For 61 - 90 days
= $21,000 × 11%
= $2,310
Over 90 days
= $9,000 × 50%
= $4,500
So, the total amount is
= $1,220 + $2,200 + $2,310 + $4,500
= $10,230
Now the Account Expense is
= Total expense - credit balance
= $10,230 - $1,500
= $8,730
