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2 years ago

The profit and loss system of capitalism helps entrepreneurs determine the

Business

1 answer:

mrs_skeptik [129]2 years ago

4 0

Answer:

best combination of resources to use to produce a product.

Explanation:

Capitalism also referred to as free-enterprise system or free market can be defined as a type of economy in which prices, products and services are being determined by the market rather than the government. Thus, capitalism is devoid (free) of government regulations, interference or control because the market (enterprises) are the ones who are saddled with the responsibility of determining the market forces.

Simply stated, a pure capitalism is a type of economy that is completely driven by demand and supply of goods and services.

In a society, the role of an entrepreneur is mainly focused on bringing the four (4) factors of production together and take the risks of producing output, so as to generate revenue through sales and make economic profits in the long-run.

Hence, the profit and loss system of capitalism helps entrepreneurs determine best combination of resources to use to produce a product.

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Stephanie Johns is a member in a store that is a nonprofit organization that buys grocery items in bulk. The savings on these bu

Luden [163]

Answer:

E.cooperative

Explanation:

Based on the information provided within the question it seems that Stephanie Johns is most likely shopping in a cooperative store. This is a type of store that is owned and managed by the customers themselves, using their own capital for the business and at the same time share in the dividends provided. Which in this case are savings from lower food prices.

8 0

2 years ago

1) Markets and competition In a perfectly competitive market, all producers sell___________ goods or services. (perfectly identi

marishachu [46]

Answer:

The answers are,

1) Perfectly Identical

2) many

3)takers

4)false

Explanation:

Lettuce is a commodity that can't be differentiated much based on the product. It can be however, differentiated from branding, packaging, etc.

But since the Lettuce is a broad category, we can assume that it is a competitive market.

Perfectly competitive markets do not really exist in the real world and are more of a hypothetical scenario. However, knowing the concept allows businesses and governments to make sound economic decisions regarding production and consumption.

3 0

3 years ago

A company has net income of $130,500. Its net sales were $1,740,000 and its total assets were $2,750,000. Its profit margin equa

alexgriva [62]

Answer:

True

Explanation:

The profit margin calculation is shown below:

= (Net income ÷ net sales) × 100

= ($130,500 ÷ $1,740,000) × 100

= 7.5%

We simply divide net income by net sales in order to achieve the gross profit margin. This indicates a correlation between net income or net income and net sales.

All other information provided is irrelevant. Therefore, it was ignored

8 0

3 years ago

Suppose the price level reflects the number of dollars needed to buy a basket of goods containing one cup of coffee, one donut,

Anettt [7]

Answer:

From year one to year two, there is (Deflation,Inflation) at an annual rate of _12.5____%. In year one, $40.00 will buy ____5____ baskets, and in year two, $40.00 will buy ___5.7 (6)____ baskets. This example illustrates that, as the price level falls, the value of money:_increases___

Explanation:

a) Data and Calculations:

The price of a basket of goods in year one = $8.00

The price of the same basket of goods in year two = $7.00

Difference in price (reduction in price) = $1 ($8 - $7)

Percentage reduction in price = $1/$8 * 100 = 12.5%

With $40/8, 5 baskets were bought

With $40/7, 5.7 baskets will be bought

b) Economists are always wary of prolonged deflation or continuous general falling prices of goods because it depicts an economy that is seriously weakening at its foundation. As a fallout, companies slow production, reduce output, lay off workers, and reduce salaries (earned income).

5 0

2 years ago

The dividend irrelevance theory, proposed by Miller and Modigliani, says that provided a firm pays at least some dividends, how

lesantik [10]

Answer:

b) false

Explanation:

In the case of theory that developed by MM in this the investor have no need for concering with respect to the dividend policy of the company as in this the sell option is there with regard to the equity portfolio when they need the cash

So according to the given situation, the given statement is false

hence the option b is correct

7 0

2 years ago