Answer:
($19,400)
Manson Industries decision is to make the product.
Explanation:
The Preparation of total cost saving is shown below:-
Make Buy Net Income Increase/
Decrease
Variable Manufacturing $97,000 - $97,000
Cost
(19,400 × $5)
Fixed manufacturing $38,800 $38,800
(19,400 × $2)
Purchase Price $116,400 ($116,400)
(19,400 × $6)
Total annual cost $135,800 $155,200 ($19,400)
So, Manson Industries decision is to make the product.
The answer is <u>"b. move to activities where they are more highly valued."</u>
Creative destruction depends on the possibility that as opposed to inclining toward harmony, the economy is to a great extent in flux.
Creative destruction is the perception that a free enterprise economy is inalienably determined by developments, which are entwined with the pulverization of old parts of the economy and the making of new. That is, the development of another item triggers capital speculation, monetary extension, more noteworthy business, and improved expectations for everyday comforts, except by supplanting existing generation laborers are jobless, industrial facilities are closed down, and firms go bankrupt.
Answer:
125 pounds
Explanation:
The computation of the number of pounds of ground beef will be in your new recipe is shown below:
= Number of pounds contained in ground beef × conversion factor
= 25 pounds of ground beef × 5
= 125 pounds
By multiplying the number of pounds with the conversion factor we can get the number of pounds of ground beef
Answer:
a.Capital expenditure, replacement component
b.Capital expenditure, replacement component
c.Revenue Expenditure, not applicable
d.Capital expenditure, replacement component
e.Capital expenditure, additional
f.Revenue Expenditure, not applicable
g.Capital expenditure, additional
Explanation:
Capital Expenditure involve the addition or replacement on assets that <u><em>increases flows of economic benefits or Income earning</em></u> capacity.
Revenue Expenditure involve repairs or maintenance of assets in order to <u><em>maintain the ability to earn income or economic benefits</em></u> and not to increase it.
Answer:
a. marginal revenue is equal to marginal cost.
Explanation:
Monopolistic competition can be defined as an imperfect competition where many producers or organizations sell differentiated products that are not perfect substitutes. Examples of firms or organizations engaging in a monopolistic competition are restaurants, shoes, clothing lines etc.
Generally, a monopolistic competitive market is characterized by the presence of large numbers of firm (producers) and a very low entry barrier.
Hence, in a monopolistic competition, firms have a degree of control over price, make independent decisions and can freely enter or exit the market in the long-run. Therefore, these firms combine elements of both monopoly and competition.
When a monopolistically competitive firm is in long-run equilibrium marginal revenue is equal to marginal cost 
. This ultimately implies that in the long-run, firms engaging in monopolistic competitive market are often going to manufacture the quantity of goods where the marginal cost (MC) curve intersect with the marginal revenue (MR). Also, the price set would be greater than the minimum average total cost (ATC).
<em>Thus, a monopolistic competitive producer has a highly elastic demand curve and firms would eventually break even in the long-run. </em>
