All categories

3 years ago

What role do businesses play in a free enterprise system?

Business

1 answer:

fenix001 [56]3 years ago

3 0

Answer:

C. They produce most available goods and services.

Explanation:

In A free market economy, the production of goods and services is done by the private sector. The government's participation in economic activities is limited. The private sector owns and controls the majority of the factors of production. The private sector owns factories, manufacturing, and other businesses in the economy.

In the free market economy, profits are the primary motivating factors to engage in business. The private sector produces goods and services that will generate profits for the businesses.

You might be interested in

A corporate treasury working out of Vienna with operations in New York simultaneously calls Citibank in New York City and Barcla

WARRIOR [948]

Answer:

Given $1 million and the following quotes:

Bank C - $0.7551-61/€

Bank B - $0.7545-75/€

There are two different arbitrage strategies that can be attempted. The first is to buy euros from bank B, and then sell them to bank C:

Buy euros Bank B:

Euros to be bought = $1,000,000 x Euro / $ 0.7575

Euros to be bought = 1,320,132.01 Euros

Sell euros Bank C:

Euros to be sold = 1,320,132.01 euros x $0.7551 / Euro

Euros to be sold = $996,831.68

The profit/loss can be calculated by subtracting the original starting amount of dollars by the post-arbitrage amount:

Profit/loss = $996,831.68 - $1,000,000

Profit/loss = -$3,168.32

The second strategy involves buy euros from bank C and selling them to bank B: Buy euros Bank C:

Euros to be bought = $1,000,000 x Euro / $ 0.7561

Euros to be bought = 1,322,576.38 Euros

Sell euros Bank B:

Euros to be sold = 1,322,576.38 euro x 0.7545 / Euro

Euros to be sold = $997,883.88

The profit/loss can be calculated by subtracting the original starting amount of dollars by the post-arbitrage amount:

Profit/loss = $997,883.88 - $1,000,000

Profit/loss = -$2,116.12

In both instances a loss is made by the arbitrage. The arbitrager cannot make a profit using these quotes.

3 0

3 years ago

Read 2 more answers

Kendall Company has sales of 1,000 units at $60 a unit. Variable expenses are 30% of the selling price. If total fixed expenses

Lelu [443]

Answer:

There are several ways to compute the degree of operating leverage (DOL). A fairly intuitive approach is expressed below.

DOL = (sales - variable costs) / (sales - variable costs - fixed costs)

For Kendall, the DOL is computed as follows:

DOL = (1,000 * $60 - 1,000 * $60 * .30) / (1,000 * $60 - 1,000 * $60 * .30 - $30,000) = 3.5

hope this helps

8 0

3 years ago

Which of the following forms of communication has the most impact during your interview? a. Nonverbal b. Verbal c. Voice quality

Alex

Being verbal during an interview is a important thing

8 0

3 years ago

Read 2 more answers

Price elasticity of demand measures Select one: A. how responsive sales are to changes in the price of a related good. B. how re

Setler79 [48]

Answer:

Explanation:

Elasticity of demand is the degree of responsiveness of the quantity demanded of a commodity to change in the price of the commodity.

It is of 3 types

1. Price elasticity of demand

2. Income elasticity of demand

3. Cross elasticity of demand

6 0

3 years ago

Read 2 more answers

Suppose Nicholas owns a business making Christmas tree ornaments. Currently, he makes 300 ornaments a month. At this level of pr

Fudgin [204]

Solution and Explanation:

1. MC = Cost of raw material + Cost of time

MC = 5 plus (10 divide by 2)

MC = $10

2. TFC = $300

Q = 300 , AFC = TFC/Q = 300 divide by 300 = $1

3. His profit maximizing output would be higher

Reason: P = MR = $15 , MC = $10

Since MR > MC, and at the profit maximizing point MR = MC, it is better for Nicholas to increase his output.

4. His profit maximizing output would be higher

Reason: P = MR = $15 , MC = $4 + $5 = $9

Since MR > MC, and at the profit maximizing point MR = MC, it is better for Nicholas to increase his output.

3 0

4 years ago