In market economies, firms rarely worry about the availability of inputs to produce their products because, in market economies, buyers of inputs know that consumers want to purchase the product.
<h3>What is a market economy?</h3>
A market economy refers to the economic system where the decisions regarding investment, production, and distribution to the customers.
In a market economy, the allocation of resources by the entrepreneurs across different businesses and production processes is determined by the profits they hope to make by producing output that their customers will value that entrepreneurs paid.
Therefore, C is the correct option.
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Option D
Because the answer is AFS to HTM- Amortize to net income over remaining life.
Answer:
It is cheaper to buy the product.
Explanation:
Giving the following information:
Production:
Direct material $45,000
Direct labor 30,000
Factory overhead (30 % is variable ) 98,000
Buy:
Total cost= $100,000
<u>I will assume that none of the fixed overhead avoidable. Therefore, we will take into account only the variable overhead.</u>
Total variable production cost= 45,000 + 30,000 + (98,000*0.3)
Total variable production cost= $104,400
It is cheaper to buy the product.
Answer: True
Explanation: In simple words, real risk free rate refers to the rate than a borrower can actually get in the market for a specified amount and for a specified period.
Real risk free rate is seen as a measure of how the economy of a country is performing and is calculated by subtracting the inflation rate from the treasury bonds of the govt. which match the durability of the borrower.
It depicts the actual increase in purchasing power as it deducts the impact of inflation over time. Thus, the given statement is true.