Answer:
a. 9%
b. Yes, the firm earning an economic profit of 2%
c. Yes, Industry will see entry or exits
d. Rate of return of economy = 7%
Explanation:
a. Percentage rate of return = Earning ÷ Investment by founders × 100
= $18 ÷ $200 × 100
= 9%
b. Company rate of profit - Rate of profit of economy
= 9% - 7%
= 2% > 0
Yes, the firm earning an economic profit of 2%
c. Yes, Industry will see entry or exits because industry is competitive in nature and would to like to compete to others by satisfying the consumers . In perfect competitive markets there will be no entry or exits and critical characteristics reason companies are free for entry and exit for marginal profits.
d. Industry is competitive , there will be supplier to serve the market and its hard to decide the price of the product.
Hence, the rate of return long run equilibrium earned by firm = Rate of return of economy = 7%
Answer:
In which type of economy is a business owner most likely to benefit from free enterprise? (1 point) In a market economy because there is lots of competition and not much take back from the government. This economy is ideal for a free enterprise.
Answer:
$24,000 = Account receivable
$24,000 = Account payable
Explanation:
Since it is given that
The service is performed of $24,000 but not paid by the customer so the same is to be recorded in the account receivable of the asset account
And, the Dixon trucking had the need to pay to their suppliers for $24,000 that is to be recorded in the account payable of the liabilities account
Both the amount is recorded as an account receivable and the account payable respectively
Money that’s the amount you would use
