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3 years ago

15

Consider a perfectly competitive market in which all firms have the same costs. Choose the statement that is incorrect.

1 answer:

Furkat [3]3 years ago

3 0

Answer:

B. The market demand is perfectly elastic at the market price. °

Explanation:

As we know that in the case of perfect competitive market there is a big number of sellers and buyers who sells same kind of product, there is no entry and exit barriers also the firm is a price taker

In addition to this, the market price and output would be measured by the supply and demand force. The profit maximizing output for every firm would considered the market price with the prescribed output and at the time when firm is shutdown so the market price would below the average variable cost

So the option b is incorrect

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Hunter & Sons sells a single model of meat smoker for use in the home. The smokers have the following price and cost charact

Yuri [45]

Answer:

a. 7,900

b. 10,100

Explanation:

As for the provided information,

We know at break even point taxes shall be = 0 as there are no profits and no losses.

a. At break even: = $\frac{Fixed\ Cost}{Contribution}$

Fixed Cost = $308,100

Contribution per unit = Selling price - Variable cost = $79 - $40 = $39

Therefore, break even units = $\frac{308,100}{39} = 7,900 smokers$

b. In case the company wants a profit of $51,480 after tax @ 40% then,

Earnings before taxes = $\frac{51,480}{1 - 0.4}$ = $85,800

Therefore, number of units = $\frac{Fixed\ Cost + Profit\ before\ tax}{Contribution\ per\ unit}$

= $\frac{308,100 + 85,800}{39}$ = 10,100

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3 years ago

Michael Jordan, retired NBA superstar, used his successes as an athlete to become a billionaire. What gains are entrepreneurs lo

Ivan

It should be Option B since entrepreneurs main aim is usually profit making.

7 0

3 years ago

Sage Company has been having difficulty obtaining key raw materials for its manufacturing process. The company therefore signed

maks197457 [2]

Answer:

Dr Unrealized Holding $32,760

Cr Estimated Liabilities $32,760

Explanation:

Preparation of What entry would you make on December 31, 2020, to recognize these facts

Based on the information given the Joi entry you would make on December 31, 2020, to recognize these facts will be :

December 31, 2020

Dr Unrealized Holding $32,760

Cr Estimated Liabilities $32,760

($367,600-$334,840)

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2 years ago

Marigold reported the following information for the current year: Sales (59000 units) $1180000, direct materials and direct labo

Setler79 [48]

Answer:

Marigold break-even point = 400,000 units

Explanation:

given data

Sales = 59000 units

direct materials = $1180000

direct labor = $590000

variable costs = $59000

fixed costs = $360000

solution

we get here Marigold’s break-even point in units that is express as

Marigold’s break-even point = Fixed Cost ÷ (Selling Price - Variable Cost) .............1

Break Even Point = Fixed Cost ÷ Contribution Margin ............2

so here

Contribution Margin will be = $\frac{1180000 - (590000+59000)}{59000}$

Contribution Margin = $9

now put value in equation 2 we get

Marigold break-even point = $\frac{360,000}{9}$

Marigold break-even point = 400,000 units

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3 years ago

The price tag on a golf ball in 1975 read $0.20, and the price tag on a golf ball in 2005 read $2.00. The CPI in 1975 was 52.3,

bonufazy [111]

The answer to this is d

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3 years ago