Answer: Option (d) is correct.
Explanation:
Correct option: Market price is greater than marginal cost.
In a perfectly competitive market, there are large number of buyers and sellers. So, price is determined by the market forces.
At a point of profit maximization, price is equal to the marginal cost and we have to maximize the difference of the total revenue and total cost. It was not seen in a perfectly competitive market that the price is above the marginal cost at a profit maximizing point.
Therefore, option (d) is not true.
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Answer:
the amount of the interest adjustment is $336.875
Explanation:
The computation of the amount of the interest adjustment is as follows;
= Principal × rate of interest × number of days ÷ total number of days
= $157,500 × 5.5% × 14 days ÷ 360 days
= $336.875
Hence, the amount of the interest adjustment is $336.875
Therefore the given formula is applied