Answer: They are both right.
Explanation:
Firms in every market will always maximise profit where their Marginal Revenue equals Marginal Cost because at this point, resources are being fully utilized. This is therefore no different in a Perfectly competitive market so Skip is correct.
Peggy is also correct however because in a Perfectly Competitive market, the demand curve is perfectly elastic. This creates a situation where the Price, Marginal Revenue and Average Revenue are all the same and represent the demand curve as well.
With the Price being the same as the Marginal Revenue in a Perfectly competitive firm, that means that where the Price equals Marginal Cost is where the Marginal Revenue equals Marginal Cost as well so indeed perfectly competitive firms maximize profit where price equals marginal cost.
Answer: social responsibility of business to customers
Explanation:
social responsibility of business is the voluntary roles which business play in the society
It is the moral obligation that business owes the society, in other words, it refers to the ways in which business enterprises could assist to develop the local communities in which they operate.The business can have responsibilities towards the following
Owners : The business has it as a responsibility to protect the investment of its owners. It has to ensure that a reasonable return is earned on such investment, in addition, efforts must also be geared toward ensuring the growth of the business.
Customers : The business responsibility to their customers include the production and distribution of high quality goods and services advertising correct and not defective goods and services, labelling goods clearly and correctly, offering and explaining credit facilities and adopting after sales services. The business must recognize that the ultimate success or failure of the business rest to a large extent with the customers, The business must ensure that they do not sell to their customers fake product or produce products which may be injurious to the health of their customers.
Employees : The employees are the Labour component of the factors of production, the responsibility of the business to their employees is to pay commensurable salaries and provide satisfying work ,job security and good working conditions for their employees.
Creditors : The creditors are those individuals or organizations whom the business owe money.It is the responsibility of the business to repay these debt as they fall due.It is equally essential for business to cultivate a good culture of debt management.
Government : The business has a responsibility to obey the various government laws guiding business operations. It must also pay its taxes at the right time and contribute to the economic development of the country.
Answer:
Predetermined manufacturing overhead rate= $171.89 per direct labor hour
Explanation:
<u>To calculate the predetermined manufacturing overhead rate we need to use the following formula:</u>
Predetermined manufacturing overhead rate= total estimated overhead costs for the period/ total amount of allocation base
Total direct labor hours= (500*0.4) + (1,000*0.2)= 400 direct labor hours
Predetermined manufacturing overhead rate= 68,756 / 400
Predetermined manufacturing overhead rate= $171.89 per direct labor hour
Answer:
Operating Leasing
Explanation:
Legal title is retained by the seller, buyer enjoys equitable title (during the lease contract duration) of the property (e. g. using land, leased buildings or machinery for the business needs),
Answer and Explanation:
The computation for each corrected common-size percent for each account is shown below:
Particulars Amount Percentage
Total assets $700,000 100%
Accounts payable $75,000 10.71%
($75,000 ÷ $700,000)
Bonds payable $225,000 32.14%
($225,000 ÷ $700,000)
Common stock $300,000 42.86%
($300,000 ÷ $700,000)
Retained earnings $100,000 14.29%
($100,000 ÷ $700,000)
Therefore each one of assetm liabilities and stockholder equity is presented as a percentage of total assets and the same is to be considered
