Pure competition or perfect competition is where all firms have full knowledge of what is going on in the market, where there is free flow of information between not only the producers, but also with the consumers.
As such, all firms have no dominant share of market power since each individual firm is able to produce the good of the same quality and quantity (factors of production are fluid, and no costs in transportation in this theory). And at the same time, consumers have full knowledge of the quality of good they are getting and hence no firm will be able to exploit the misinformation of a good for its own profits.
This builds up to the point of a perfectly elastic demand curve, where consumers know what amount and at which price point do they value the product at. And knowing for the fact that small individual firms in a purely competitive firm have no say over prices, they become the price takers for this kind of market. Thus where MB=MC, the equilibrium point is reached and it is also at the socially optimal level since all consumers have full knowledge of the pros and cons of consuming a product (hence no externalities).
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If the cpi is 200 in year 1980 and 300 today, then $600 in 1980 is equivalent to $900 today.
To calculate the lease payments we use the excel function PMT as in =PMT(rate,nper,pv,fv,type)
Rate = 11.2% Compounded monthly
Rate = 11.2%/12 (Monthly rate)
NPER = 24 months = 24
PV = 2650
FV =0
TYPE = 1 (Since the payments are due immediately meaning this is an annuity due)
So, monthly payment =PMT(11%/12,24,2650,0,1) = $122.39
Your monthly lease payments should be = $122.39
Answer:
Explanation:
The journal entries are shown below:
On October 1
Dividend Declared A/c Dr $650 (2,600 shares × $0.25)
To Dividend payable A/c $650
(Being dividend is declared)
On October 15
No entry is required
On October 31
Dividend payable A/c Dr $650
To Cash A/c $650
(Being dividend is paid for cash)
Of course they do have obvious answers
