Answer: Production is characterized by significant economies of scale is not an assumption of perfect competition (A)
Explanation:
A perfect competition is a form of market structure that has many buyers and may sellers. In a perfect competition, there is a free entry and exit for producers as there is no barrier.
Also, firms are price takers as no producer can influence the price of the goods in the market unlike in an imperfect competition which is a price maker as producers can influence price. Firms also sell identical products that are the same in quality, size etc.
In a perfect competition, production is not characterized by significant economies of scale. That is an assumption that can be found in monopoly.
Therefore, option A is the right answer.
Answer:
the book value of the shareholder equity is $53,413
Explanation:
The computation of the book value of the shareholder equity is shown below;
Book value of shareholders equity is
= Book value of mailing + net working capital - Long term debt
= $25,955 + $92,535 $65,077
= $53,413
Hence, the book value of the shareholder equity is $53,413
Answer:
These questions are incomplete since the article relating to Hologen company is not attached. However, I would answer them this way.
Explanation:
1) A floating rate bond has a shorter duration; almost zero and it has lower sensitivity to interest rates compared to a fixed rate bond.This means that the former has a lower interest rate risk. Investors tend to demand floating rate bonds when they expect future interest rates to rise because their prices would be close to their par values as their interest rates would also increase. On the other hand, fixed bond's interest rates are inversely related to their prices.
2)
For an issuing company, borrowing money floating rates terms could be riskier for cashflow management purposes . Every time interest rates increases, it means that the company would pay higher interests to lenders which could hurt its profitability. The fluctuations could also negatively affect future financial planning unlike issuing fixed rate bonds whose coupon payments are constant hence decreasing the volatility of earnings.
<span>Opening up to international trade would lead a country to increasing its production and specialization of goods. For example, if a country opens international trade and some factories are making a household appliance, the instructions would need to be in the trade countries languages as well as the native language. The number of household appliances made would need to be increased to meet the growing need.</span>
Answer:
6,000 units
Explanation:
We know that
Break even point in units = (Fixed expenses ) ÷ (Contribution margin per unit)
where,
Contribution margin per unit = Selling price per unit - Variable expense per unit
The selling price would be
= $500 - $500 × 4%
= $500 - $20
= $480
And, the Variable expense per unit is $350
So, the contribution margin per unit would be
= $480 - $350
= $130
So, the break even point in unit should be
= $780,000 ÷ $130 per units
= 6,000 units
