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2 years ago

Explain how the basic economic problems are solved under capitalism?

Business

1 answer:

Brums [2.3K]2 years ago

7 0

Answer:

Under capitalistic economy, allocation of various resources takes place with the help of market mechanism. Price of various goods and services including the price of factors of production are determined with help of the forces of demand and supply. Free price mechanism helps producers to decide what to produce.

The goods which are more in demand and on which consumers can afford to spend more, are produced in larger quantity than those goods or services which have lower demand. The price of various factors of production including technology helps to decide production techniques or methods of production. Rational producer intends to use those factors or techniques which has relatively lower price in the market.

Factor earnings received by the employers of factors of production decides spending capacity of the people. This helps producers to identify the consumers for whom goods could be produced in larger or smaller quantities. Price mechanism works well only if competition exists and natural flow of demand and supply of goods is not disturbed artificially.

Explanation:

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Preparing a Cost of Goods Sold Budget Andrews Company manufactures a line of office chairs. Each chair takes $14 of direct mater

Marta_Voda [28]

Answer:

Cost of goods sold = $960,839

Explanation:

Preparing cost of goods sold budget:

Number of units to be sold = 20,000 - 675 = 19,325

As for the information provided:

Direct Materials = $14 $\times$ 19,325 = $270,550

Direct Labor hours = 1.9 $\times$ 19,325 = 36,717.5

Direct Labor Cost = $16 $\times$ 36,717.5 = $587,480

Variable overhead = $1.20 $\times$ 36,717.5 = $44,061

Fixed overhead = $1.60 $\times$ 36,717.50 = $58,748

Therefore, cost of goods sold = $960,839.

6 0

3 years ago

Lacy's Linen Mart uses the average cost retail method to estimate inventories. Data for the first six months of 2021 include: be

yaroslaw [1]

Answer:

$83,850

Explanation:

Lacy's Linen Mart

Cost Retail

Beginning inventory$88,500 $139,000

Add: net purchases$331,000 $499,000

Goods available for sale$419,500 $638,000

Cost-to-retail percentage

= $419,500÷ $638,000 = 65%

Less: Net sales($509,000)

Estimated ending inventory at retail

($638,000 -$509,000) $ 129,000

Estimated ending inventory at cost(65% x $129,000)$83,850

Therefore the estimated inventory at June 30, 2021, would be $83,850

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3 years ago

For the purchase of a smartphone, an independent rating agency indicates that many consumers use price, display, camera quality,

Juliette [100K]

Quality is used to assesses the dimension of the products for reaching its fame among customers.

<u>Explanation:</u>

The Product is said to be good only when it satisfies the best quality norms the quality is considered as the main dimension for purchasing the product.
Quality is not considered as just a word but it contains many factors such as durability, reliability, aesthetics, conformance, price, serviceability, performance, and features of the particular product in all sorts of time with any sort of usage prescribed for it.

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3 years ago

The rule that requires financial statements to reflect the assumption that the business will continue operating instead of being

Elan Coil [88]

Answer:

B. Going-concern assumption.

Explanation:

The financial statements are normally prepared on the assumption that an entity is a going concern and will continue in operation for a foreseeable future. Hence, It is assumed that the entity has neither the intention nor the need to liquidate or curtail materially the scale of its operations. If such an intention or need exists, the financial statements have to be prepared on different a basis and , if so , the basis used is disclosed.

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3 years ago

Sound your horn __________________. A. to have fun B. to demand the right-of-way C. when necessary to avoid collisions D. to giv

alex41 [277]

A. Sounding your horn to have fun is just absurd, and could cause an issue. Either leading to other drivers to have a scare and wonder what was the problem, or they would get angry because they'd think you're trying to be rude. So, answer A. is incorrect.

B. Sound your horn to demand the right-of-way is extremely wrong, and incorrect. So, answer B. is incorrect.

C. You must sound your horn when necessary in order to avoid any collisions. You must do this to help warn and prevent another driver from getting into an accident with you. Therefore, C is correct.

D. Sound your horn to give other driver a piece of your mind. This is also known as road rage, it's not worth doing since you could get distracted while driving, and could lead to serious (sometimes fatal) issues. So, answer D. is incorrect.

So, as I said above, the correct answer is: C. W<span>hen necessary to avoid collisions

Good luck with your studies, and I truly hope this helps!~</span>

8 0

3 years ago

Read 2 more answers

Explain how the basic economic problems are solved under capitalism?​

Explain how the basic economic problems are solved under capitalism?