Answer: Given, the ball bearing market is purely competitive. Also at the current stage the firms in this market are earning positive economic profits.
Therefore , in the long run as adjustments occur in the industry, we can expect the market price of ball bearings to<em><u> </u></em><u><em>decrease and individual firms' profits to decrease.</em></u>
This will take place as new firms will enter the market once they analyze that the existing firms are earning positive economic profits. Thus this will lead to decrease in price of ball bearing and further will lead to decrease in profit os a firm.
<u><em></em></u>
<u><em>Therefore, the correct option is (d)</em></u>
Question Completion:
A. More than the effective interest.
B. Less than the effective interest.
C. Equal to the effective interest.
D. More than if the bonds had been sold at a premium
Answer:
When bonds are issued at a discount and the effective interest method is used for amortization, at each subsequent interest payment date, the cash paid is:
B. Less than the effective interest.
Explanation:
This cash payment is the product of the bond's face value multiplied by the coupon rate. The interest expense is increased by the amortized portion of the discount for the particular period. This means that the interest expense will be higher than the cash payment for interest because of the discount granted at issuance. And the interest expense is the product of the outstanding debt multiplied by the effective interest rate.
Total assets = Current assets + Fixed Assets
Total assets = 6000+25100
Total assets = 31,100
Total liabilities = Current liabilities + Long term debt
Total liabilities = 4950+12000
Total liabilities = 16,950
According to accounting equation, stockholder's equity = Total assets - total liabilities
Stockholder's equity = 31,100-16,950 = 14,150
Value of Stockholder's equity = $14,150
Answer:
A. People marketing.
Explanation:
In this scenario, several farmers in different areas have started organic farming because of the popularity of Blake's campaigns; even uneducated people trust the advantages of the campaign because of Blake's involvement in it. This is a people marketing strategy.
