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3 years ago

If production is occurring where marginal cost exceeds price, the purely competitive firm will __________.

Business

1 answer:

devlian [24]3 years ago

8 0

Answer:

C. fail to maximize profit and resources will be overallocated to the product

Explanation:

At MC < P, the firm may earn profit but that is not maximum the maximu profit condition is that MR = MC and in perfect competition MR = P so MC = P is the maximum condition.

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(d) Which type of wholesalers operate on a self-service basis where other traders pick, pay and transport goods on their own

geniusboy [140]

Answer:

i dont know how is it huh090889

5 0

2 years ago

Solving for dominant strategies and the Nash equilibrium Suppose Nick and Rosa are playing a game in which both must simultaneou

slava [35]

Answer:

The only dominant strategy in this game is for NICK to choose RIGHT. The outcome reflecting the unique Nash equilibrium in this game is as follows: Nick chooses RIGHT and Rosa chooses RIGHT.

Explanation:

ROSA

left right

4 / 6 /

left 3 4

NICK

right 6 / 7 /

7 6

Rosa does not have a dominant strategy since both expected payoffs are equal:

if she chooses left, her expected payoff = 3 + 7 = 10
if she chooses right, her expected payoff = 4 + 6 = 10

Nick has a dominant strategy, if he chooses right, his expected payoff will be higher:

if he chooses left, his expected payoff = 4 +6 = 10
if he chooses right, his expected payoff = 6 + 7 = 13

The only possible Nash equilibrium exists if both Rosa and Nick choose right, so that their strategies are the same, resulting in Rosa earning 6 and Nick 7.

8 0

3 years ago

On December 1, 2016, Insto Photo Company purchased merchandise, invoice price $25,000, and issued a 12%, 120-day note to Ringo C

Leto [7]

Answer:

See explanation section

Explanation:

Requirement A

Insto Photo Company

Journal Entries

Date Accounts Name Debit Credit

December 1, 2016 Inventory $25,000

Notes payable $25,000

Note: As the merchandise company issued a note for the credit purchase of merchandise inventory, notes payable is used instead of accounts payable.

Dec. 31, 2016 Interest expense $250

Interest payable $250

Note: Adjusting entry is needed as the fiscal year is ended on 31st December, therefore, there will be an accrued interest expense to be paid for one month. The calculation of interest expense = $25,000 × 12% × (30 ÷ 360) [assuming 1 year = 360 days, 1 month = 30 days]. = $250 for one month's accrual.

Requirement B

March 31, 2017 Interest expense $ 750

Interest payable $ 250

Notes payable $25,000

Cash $26,000

Note: At the end of the maturity date, the buyer will pay all the bills of the notes plus interest. Interest payable becomes debit as it did not pay by the buyer on 31st December, 2016. The remaining interest = $25,000 × 12% × (90 ÷ 360) = $750. Total cash will be paid after the maturity = $25,000 + $250 + $750 = $26,000.

3 0

3 years ago

Information on Westcott Corporation's direct labor costs for a recent month follows: Standard direct labor rate $ 3.75 per hour

Sever21 [200]

Answer:

11,120 = actual hours

Explanation:

Giving the following information:

Standard direct labor rate $ 3.75 per hour

Total standard direct labor-hours allowed for the actual production 10,000 hours

Labor efficiency variance of $ 4,200 Unfavorable

To calculate the actual hours, we need to use the following formula:

Direct labor time (efficiency) variance= (Standard Quantity - Actual Quantity)*standard rate

-4,200= (10,000 - actual hours)*3.75

-4,200 = 37,500 - 3.75actual hours

-41,700= - 3.75 actual hours

-41,700/(-3.75)= actual hours

11,120 = actual hours

Direct labor time (efficiency) variance= (10,000 - 11,120)*3.75

Direct labor time (efficiency) variance= $4,200 unfavorable

3 0

3 years ago

Hsung Company accumulates the following data concerning a proposed capital investment: cash cost $175, 846, net annual cash flow

alexira [117]

Answer:

NPV = $11400

As the NPV from the project is positive, the investment should be made.

Explanation:

The NPV or net present value is an important metric that is used for project and investment evaluation. The NPV is the present value of the series of cash flows provided by the project less the initial cost incurred to undertake the project. NPV can be calculated as follows,

NPV = (Annual Cash Flow * Present value factor) - Initial cost

NPV = (37300 * 5.02) - 175846

NPV = $11400

As the NPV from the project is positive, the investment should be made.

6 0

2 years ago