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3 years ago

A Perfectly competitive firm’s entire marginal cost curve is its short-run supply curve." Is this statement true or false?

Business

1 answer:

Sphinxa [80]3 years ago

3 0

Answer:

False.

Explanation:

In a perfect competition, there are many buyers and sellers of homogeneous products, and there is free entry and exit in the market.

This simply means that, in a perfectly competitive market, there are many buyers and sellers (price takers) of homogeneous products (standardized products with substitute) and the market is free (practically open) to all individuals or business entities that are willing to trade all their goods and services.

Hence, a perfectly competitive market is characterized by the following features;

1. Perfect information.

2. No barriers, it is typically free.

3. Equilibrium price and quantity.

4. Many buyers and sellers.

5. Homogeneous products.

Examples of a perfectly competitive market are the Agricultural sector, e-commerce and the foreign exchange market

A Perfectly competitive firm’s entire marginal cost curve is not its short-run supply curve but only the portion of the marginal cost (MC) curve of the perfectly competitive firm that lies above its average variable cost (AVC) curve would be its short-run supply curve.

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Citibank need to borrow $1 million for 6 months starting in 2 years. Citibank is concerned about the interest rate would like to

Shkiper50 [21]

Answer:

"$ 15,000" is the correct solution.

Explanation:

The given values are:

Agreed fixed rate,

= 0.04

LIBOR rate,

= 0.01

No. of borrowing months,

= 6

National amount,

= 1000000

Now,

The net payment will be:

= $National \ principal*(Floating \ rate - Fixed \ rate)\times \frac{No. \ of \ months}{12}$

On substituting the above values, we get

= $1000000\times (0.01-0.4)\times \frac{6}{12}$

= $1000000\times (-0.03)\times 0.5$

= $-15,000$ ($)

3 0

3 years ago

Mays Corp. reported free cash flows for 2018 of $491 million and investment in operating capital of $321 million. Mays Corp. inc

Anon25 [30]

Answer: $975 million

Explanation:

Given the above details, we can solve for Earnings Before Tax and Interest with the following formula,

Operating Cash Flow = EBIT – Taxes on EBIT + Depreciation

Making EBIT the subject would turn it to be,

EBIT = Operating Cash Flow + Taxes on EBIT - Depreciation

We have all of the above except the EBIT and Operating Cash Flow.

Luckily we can solve for the Operating Cash Flow with the details given using,

Operating cash flow = Free Cash Flow + Investment in operating capital

Therefore,

= $491 million + $321 million

= $812 million

Operating cash flow is $812 million

Plugging it into the original formula we have,

EBIT = Operating Cash Flow + Taxes on EBIT - Depreciation

EBIT = $812 million + $309 million - $146 million

EBIT = $975 million

Earnings before Taxes and Interest is $975 million.

If you need any clarification do react or comment.

5 0

3 years ago

In what areas do federal agencies regulate to ensure safety and the general

NeTakaya

Answer:

d. All of the above

Explanation:

Government regulations are the rules that players in an industry must abide by. In a free-market economy like the US, the government's main role is to regulate economic activities. The government enforces regulation through its various agencies.

The areas of regulations include but are not limited to

Protecting consumers from undue exploitation by businesses,
Encourage fair business competition
Promote a healthy, safe work environment for employees
Promote and sustain a clean environment
Private data protection and security

6 0

3 years ago

Consider a two-good world: good x and good y. The ICC (income consumption curve) between good x and good y has a negative slope

Art [367]

Answer: none of the above.

Explanation:

The Engle curve shows the relationship that takes place between the income of a consumer and the quantity of a particular good purchased.

From the question we are informed that the income consumption curve between good x and good y has a negative slope, this implies that good Y is an inferior good and that it has a negative income elasticity.

Also, since the Engle curve of good X has a positive slope, it implies that good X is a normal good.

Therefore, the answer to the question is "none of the above" as all options are true.

6 0

3 years ago

Cala Manufacturing purchases a large lot on which an old building is located as part of its plans to build a new plant. The nego

Assoli18 [71]

Answer:

Land $434,696

Land improvements $108,609

Building $1,720,600

To Cash $2,263,905

(Being the amount paid in cash is recorded)

Explanation:

The journal entry is shown below:

Land $434,696

Land improvements $108,609

Building $1,720,600

To Cash $2,263,905

(Being the amount paid in cash is recorded)

The land, land improvements and the building increases the assets so it is debited while the cash is credited as the cash is paid

The computation of the land is shown below:

= Purchase price of the land + purchase price for the old building + paid amount for tear down the old building + cost to fill and level the lot

= $224,000 + $119,000 + $37,000 + $54,696

= $434,696

7 0

3 years ago