Which of the following is NOT an example of fixed expenses?

The demand curve facing a perfectly competitive firm is

Answer:

Option (E) is correct.

Explanation:

Under the perfectly competitive market conditions, there are large number of buyers and sellers and there is no restrictions on the entry and exit of the firms. Prices of the goods are determined by the market forces and the demand curve for a firm in a perfectly competitive environment varies significantly from the market demand curve. The demand curve is horizontal because all the goods in a perfectly competitive market are considered as perfect substitutes.

7 0

3 years ago

The Federal Reserve Act Multiple Choice helped to reduce loans to private banks. was regulated by a board whose members were ele

salantis [7]

The correct answers are A) helped to reduce loans to private banks and C) created a new type of paper currency.

The Federal Reserve Act helped to reduce loans to private banks and created a new type of paper currency.

With the passing of the Federal Reserve Act of December 23, 1919, signed by President Woodrow Wilson, the government initiated with the Federal Reserve system that acted as the Central Bank of the United States. It had twelve regional banks that supplied all the money for the country. Its headquarters are located in Washington D.C., and the commonly known as the Fed supervises the financial and economic situation in the country, the monetary supply, and tries to control inflation.

6 0

3 years ago

COST VOLUME PROFIT ANALYSIS Comfort Homeless Inc, a factory that produces beds for homeless shelters, is considering extending i

nlexa [21]

Answer:

Instructions are below.

Explanation:

Giving the following information:

Selling price per unit= $48

Unitary variable cost= $6

Total fixed costs= $16,000

A)

To calculate the break-even point in units, we need to use the following formula:

Break-even point in units= fixed costs/ contribution margin per unit

Break-even point in units= 16,000/ (48 - 6)

Break-even point in units= 381 units

B) Selling price= $49.95 a bedpoints

Break-even point in units= 16,000/ (49.95 - 6)

Break-even point in units= 364 units

C) Unitary variable cost= 6 - 3= 3

Break-even point in units= 16,000 / (48 - 3)

Break-even point in units= 356 units

D) Matresses= 1

Beds= 1

Proportions of sales:

Matreses= 0.5

Beds= 0.5

Selling price per matress= $9

Unitary variable cost= $5

Break-even point (units)= Total fixed costs / Weighted average contribution margin ratio

Weighted average contribution margin ratio= (weighted average selling price - weighted average unitary variable cost)

Weighted average contribution margin ratio= (0.5*9 + 0.5*48) - (0.5*5 + 0.5*6)

Weighted average contribution margin ratio= $23

Break-even point (units)= 16,000/23

Break-even point (units)= 696 units

6 0

3 years ago

AI Tool and Dye issued 8% bonds with a face amount of $160 million on January 1, 2018. The bonds sold for $150 million. For bond

Tju [1.3M]

Answer and Explanation:

A will report the gain at the time when the bond is adjusted to the fair value as there is a reduction in the far value of the liabilities that occured the gain. In the case when the fair value is changed so there is also the changed in the rate of interest due to this the rate of interest is rised.

Here A would be reported the gain in the net income as there is the change in the rate of interest due to the change in the fair value

In the case when there is the chaneg in the fair value of the bond so this is because of the change in the credit risk and the same should be shown in the statement of the comprehensive income as other comphrensive income

5 0

2 years ago

The Fed buys $10 million of securities from AIG. AIG has a desired reserve ratio of 0.05, and there is no currency drain.

Andreyy89

Answer:

$200,000,000

Explanation:

Given that:

Amount of securities purchased = $10 million

Desired reserve ratio = 0.05

The bank's excess reserve :

Money multiplier * amount of securities purchased

Money multiplier = 1 / reserve ratio

Money multiplier = 1 / 0.05 = 20

Excess reserve = 20 * $10,000,000

Excess reserve = $200,000,000

3 0

3 years ago