Answer: Option E
Explanation: In a free market system the prices of goods and services produced are determined by the market forces of demand and supply. This are also known as open market.
The intervention of govt. in regulating such markets is very minimal. Thus, the control in such markets stands in hands of private owners. Therefore, the private owners produce with the single aim of profit maximization in such economies.
Hence we can conclude that the right option is E.
Answer:
Explanation:
1. Indirect Material variable cost Per Direct Labor HR 5000000/50000=100
Indirect Material (variable) 100*75000 =7500000
Rent Fixed 6000000
Hence total Maintenace Fixed =17625000-7500000-600000= 4125000
2.
Low High Change
Cost 3250000 4125000 875000
[4125000-3250000]
Activities 50000 75000 25000
variable Portion of Maitencance cost =875000/25000= 35.00
Fixed cost=4125000-75000*35=1500000
Variable cost=35
cost formula for maintenance= 1500000+35b
3.
Indirect Material (variable) 100*70000 = 7000000
Rent Fixed 6000000
Maintenance cost = 1500000+35*70000=3950000
Answer:
d. joint venture.
Explanation:
A cooperative, business trust or a franchise are generally stable businesses that are formed to operate in the long run.
On the other hand, a joint venture occurs when different entities get together to do business and that can be a one time event only. In this case, Rusty was hired for spraying the fields one time only (one time event).
Bobo's demand curve is elastic hence his purchasing ability is easily influenced by a slight change in the price of the product
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