Answer:
price-taking assumption.
free entry assumption.
Explanation:
A perfectly competitive market is one in which different firms compete for consumers of their products. The characteristics of the perfectly competitive market are:
- products are nearly identical
- all the firms are price takers. That is they are not able to determine price independently
- buyer knowledge of information about products is perfect and available to all
- free entry and exit to the market
- resources are perfectly mobile
In the given scenario above two of these rules are not obeyed.
Alcoa was effectively the sole seller of aluminum because the firm owned nearly all of the aluminum ore reserves in the world.
So they determine the price ( they are not price takers)
Also since they own nearly all the aluminium reserves there is no free entry for new firms
1. most businesses that desire fewer customer probably fall between these categories:
- Those who do not have enough resource/employee to maintain the cutomers
- Those who sell rare collectibles
2. It really depended on the type of business. If the business focus on obtaining high-end/wealthy customers and maintain highest quality of service, they may prefer lower amount of customers
Answer:
The final amount in Cash is $9,034
Explanation:
1.
As cash is received, the cash balance is increased by $10, and account receivables are decreased by $10.
2.
As cash is paid for the purchase the cash balance is decreased by $16 and inventory value will increase by $16.
3.
As the sale is made for cash, the cash balance is increased by $40, and the inventory balance is decreased by the same value.
Cash balance = $9,000 + $10 - $16 + $40 = $9,034
The working is attached with this answer please find it.
Answer:
Results are below.
Explanation:
<u>First, we need to calculate the predetermined overhead rate:</u>
Predetermined manufacturing overhead rate= total estimated overhead costs for the period/ total amount of allocation base
Predetermined manufacturing overhead rate= 1,634,000 / 86,000
Predetermined manufacturing overhead rate= $19 per direct labor hour
<u>Now, we can allocate overhead to each unitary product:</u>
Allocated MOH= Estimated manufacturing overhead rate* Actual amount of allocation base
Xactive= 19*1.4= $26.6
Pathbreaker= 19*1= $19
<u>Finally, the unitary cost of each product:</u>
Xactive= 63.8 + 17.2 + 26.6= $107.6
Pathbreaker= 50 + 12 + 19= $81
