All categories

3 years ago

4. When the actual price of a good is above its equilibrium market price, competition

Business

1 answer:

earnstyle [38]3 years ago

4 0

Answer:

Explanation:

Because naturally within a market the equilibrium price is trying to be reached, (besides price ceilings and floors imposed by the government), Sellers will naturally push the price downwards because they must compete with each other to make a living. Thus answer C. is correct.

You might be interested in

In a free enterprise system, competition benefits who?

maks197457 [2]

In a free enterprise system, competition is believed to benefit consumers and also workers. The idea is that the free enterprise system theoretically creates more jobs and also creates the most economic benefit and well being as a result of better prices and competition amongst firms in the system.

5 0

3 years ago

Webster is a talented baker and has a degree in business management. He wants to own his own chain of incorporated bakeries one

Mars2501 [29]

Answer: High up-front costs

Explanation: Starting a corporation requires a large initial investment. (I took the test and got it correct)

3 0

3 years ago

Part A Smith Company experienced the following accounting events during 2018:

ValentinkaMS [17]

Answer:

1. Cash (Dr.) $2,000

Common Stock (Cr.) $2,000

2. Accounts Receivable (Dr.) $1,500

Revenue (Cr.) $1,500

3. Cash (Dr.) $1,200

Accounts Receivable (Cr.) $1,200

4. Salaries expense accrued (Dr.) $900

Salaries payable (Cr.) $900

5. Salary Payable (Dr.) $700

Cash (Cr.) $700

6. Dividends paid (Dr.) $100

Cash (Cr.) $100

7.Prepaid Insurance (Dr.) $360

Cash (Cr.) $360

8. Cash (Dr.) $2,880

Unearned revenue (Cr.) $2,880

9. Insurance Expense (Dr.) $290

Prepaid Insurance (Cr.) $290

10. Unearned revenue (Dr.) $2,880

Revenue (Cr.) $2,880.

Explanation:

Smith company has started its business and incurred the transactions. These transactions need to be recorded to charge each and every expense in their respective accounts. The expenses are recorded in the journal entries and then ledger accounts will be formed to summaries all the expenses in their respective account heads.

6 0

3 years ago

The 2017 balance sheet of Kerber’s Tennis Shop, Inc., showed $2.7 million in long-term debt, $760,000 in the common stock accoun

g100num [7]

Answer: -($2,000,000)

Explanation:

Cash flow to creditors = Increase in long term debt + Interest Paid

= ($2.7 - $4.25) + $180,000

= - $1,550,000 + $180,000

= - ($1,370,000)

Cash flow to shareholders = Dividends paid + Increase in common stock + Increase in additional paid-in surplus account

= $510,000 + ($760,000 - $905,000) + ($6.25 - $7.9)

= $510,000 - $145,000 - $1,650,000

= - ($1,285,000)

Cash flow from Assets = Cash flow to creditors + Cash flow to shareholders

= - ($1,370,000) - ($1,285,000)

= - ($2,655,000)

Operating cash flow = Cash flow from Assets + Change in net working capital + net capital spending

= - ($2,655,000) + (-$195,000) + $850,000

= -($2,000,000)

8 0

3 years ago

With his parents' permission, David, a ten-year-old, purchased a plastic snow sled from Kmart. He went sledding, lost control, h

Nata [24]

Answer:

The Kmart was held by the court not liable because David assumed the risks of sledding.

Explanation:

Negligent actions are those actions that come under the rubric of tort actions. To prove negligent actions against a person or a company, the plaintiff is required to prove four things in court– duty, breach, causation, and damages.

In the given case, the court will not be held Kmart liable because David (the consumer) was aware of the risks involved in the sledding. Therefore, the case of negligent actions is not applicable for Kmart.

5 0

3 years ago