Answer:
C) Price must be below the equilibrium price
Explanation:
In a perfect competition, price is determined by the industry and no individual consumer or producer can manipulate the price. When something is in equilibrium, it refers to a balanced state with no will to change. In a perfectly competitive market, equilibrium is a point where supply is equal to demand. Market supply is the sum of individual supplies by all producers of the same commodity in the market. Market demand I'd the sum of individual demand by all consumers of a commodity in a market.
The price at which a market becomes equilibrium is the equilibrium price and the quantity supplied or demanded at the equilibrium price is the equilibrium quantity. When a price is above the equilibrium price, suppliers tend to increase the supply for profits. This could cause a condition of excess supply. In order to sell out the excesses, the price will have to go below the equilibrium price.
When a price is below the equilibrium price, consumers tend to buy at a reduced price. This causes excess demand. Here, consumers are willing to pay higher to meet the exorbitant demand and thus, the price rises to the equilibrium level.
Answer:
D. Inventory levels are determined as the trade-off between losing the margin on additional sales and the costs of excess inventory.
Explanation:
Option B is wrong because net working capital = current assets - current liabilities, and inventory is a current asset.
Options A and C may or may not be true depending on the company's costs. Holding costs include storage costs, insurance, damaged goods or even spoilage. Depending on the industry, e.g. dairy products, they might be larger than financing costs. But for other industries, e.g. microchips, holding costs are probably much lower than financing costs (a lot of small but expensive goods).
Answer: <em>Polish, Civility and Social Intelligence </em>
Explanation:
The following are the synonyms for the professional behavior: Civility, Polish and Social Intelligence. Social intelligence is referred to as or known as the capacity of an individual to know himself/herself and other individual. Civility is referred or as known as the civilized conduct i.e. considered to be a polite act or an expression
.
The correct answer is Choice B.
When a business makes a sale and expects to be paid in the near future it should be recorded as an Account Receivable. In this case the company will have a debit entry to Accounts Receivable and a credit entry to Service Revenue.
Answer:
The answer is: Other car makers will also lower the price of their cars.
Explanation:
The market for new cars is extremely competitive and very segmented. Car companies are continuously offering new models and technologies, and offering discounts, promotions, low interest car leases, etc.
For example; Toyota is the number one car seller in the US and its main competitor is probably Honda (since they both sell basically the same types of cars and SUVs). If it decides to offer a Thanksgiving bonus of $2,000 for purchasing a Corolla, then Honda will probably offer the same or a larger bonus for clients that buy Civics. The market is simply too competitive for allowing any promotion go unanswered by the competition.