Answer:
Prices drop when other perfectly competitive firms see an opportunity to earn profits and enter the market.
Explanation:
In a perfectly competitive market, firms can freely enter and exit the market in the long run.
Short run is too short for firms to enter or exit. So when the existing firms enjoy profits in the short run, this attracts the potential firms to enter the market in the long run.
As new firms join the market, market supply increases. This causes the market supply curve to shift to the right. The price level falls.
This causes the market share and profits of firms to decline.
You have a portfolio of these two stocks wherein stock x has a portfolio weight of 42%. Your portfolio standard deviation is 10.64%.
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Answer:
$12,500
Explanation:
Depreciation Expense = (Book Value of machine - Residual Value)/Useful Life
= ($34,000 - $2,000)/8
= $4,000 per year
Depreciation Expense for years 2017 & 2018 would be $4,000 X 2 = $8,000
Net book Value on January 1, 2019 = $34,000 - $8,000 = $26,000
New Residual Value = $1,000
New Useful Life = 8 - 2 - 4 = 2 Years
Depreciation expense for 2019 = ($26,000 - $1,000)/2 = $12,500
Answer: $360,050
Explanation:
The total cost of a fixed asset refers to all the cash that was paid to acquire the asset, transport it and then install it.
Cost of the new machinery is therefore = Discounted cost price + Sales tax + Installation charges + Concrete slab
= (270,000 * (1 - 2%)) + 79,750 + 4,800 + 10,900
= 264,600 + 79,750 + 4,800 + 10,900
= $360,050
<em>Cost price was discounted by 2% as per the credit terms of 2/10 which means that there is a discount of 2% if the asset is paid for in 10 days. </em>
