Answer:
10%
yes
2%
enter
8%
Explanation:
A perfect competition is characterized by many buyers and sellers of homogenous goods and services. Market prices are set by the forces of demand and supply. There are no barriers to entry or exit of firms into the industry.
In the long run, firms earn zero economic profit. If in the short run firms are earning economic profit, in the long run firms would enter into the industry. This would drive economic profit to zero.
Also, if in the short run, firms are earning economic loss, in the long run, firms would exit the industry until economic profit falls to zero.
Rate of return = (earnings of firms / amount invested) x 100
(15/150) x 100 = 10%
The firm is earning an economic profit because the rate of return is higher than the normal profit by 2%.
In the long run, firms would enter into the industry. This would reduce economic profit to zero and the firm would be earning only normal profit once long run equilibrium has been reached
Answer:
No
Explanation:
In a competitive market, price should be a function of variable/marginal costs not fixed costs.
Answer:
Free cashflow
Explanation:
Free cashflow entails that cash a company generates after it has accounted for cash outflows to support operations and maintain its capital assets. It also measures the cash available to the company's investors and creditors after accounting for its operational cost.
Answer:
Escrow account
Explanation:
An escrow account is a type of account in which a third party helds a certain amount of money while two parties complete a transaction. This is used to protect people from fraud when they are involve in transactions like purchasing a house as both parties can trust that the money is safe and the third party only provides the funds when they agree with everything and are happy with the results.
According to this, the answer is that if a purchasing agent must put up a cash deposit for construction services, for security purposes, instead of giving it directly to the contractor, he or she may insist that it be placed in an escrow account because the money would be safe and it would be maintained by a third party that will provide the funds when the services are complete.
B. not accurately defined by any of these statements.
C. one that has not been approved by the Federal Food and Drug Administration.
D. one whose price and quantity demanded vary directly.
Answer:
B. not accurately defined by any of these statements.
Explanation:
An inferior good is defined as one whose the quantity demanded decreases as the income of its consumers increases and vice versa.
Option A is incorrect because the income elasticity for inferior goods is negative and therefore, as the income of the consumers increases, the demand curve shifts to the left.
Option C is incorrect because an inferior good does not necessarily mean a fake good. A good can be inferior but yet meet all the standards for approval by the FDA.
Option D is incorrect. The price and quantity demand for inferior goods, just like normal goods do not vary directly. This is only applicable to luxurious goods.
None of the statements in A, C, and D accurately defined an inferior goods.
Hence, the correct option is B.
Answer:
B. not accurately defined by any of these statements.
Explanation:
Inferior goods are goods whose demand decreases as the consumers income increases. This is different for normal goods in that the more the consumer earns, the more he/she tends to buy.
As such, inferior goods are not necessarily goods that has not been approved by the Federal Food and Drug Administration.
For Inferior goods, prices and quantity demanded do not vary proportionately.
Furthermore, the demand curve for an inferior good shifts out (rightward) when income decreases and shifts in when income increases.
Answer:
a. will reduce profits by $40,000
Explanation:
A: TR - TC = 650 * 2,100 - [$300,000 + (650 * 1,700)]1,365,000 - 1,405,000 = $ - 40,000
Therefore, this campaign will reduce profits by $40,000
The advertising campaign would reduce profits by $40,000. This is calculated by subtracting the campaign cost and additional costs per bed day from the total revenue generated from bed days.
The subject of this question is the financial impact of a proposed advertising campaign on a system's profits. To determine the effect on profits, we need to calculate the difference between the anticipated additional revenue and the anticipated increased costs, and then subtract the cost of the advertising campaign.
In this scenario, the total additional revenue from 650 bed days, at $2,100 each, would be $2,100 x 650 = $1,365,000. The total additional costs from these bed days would be $1,700 x 650 = $1,105,000. Subtracting costs from revenue, we have $1,365,000 - $1,105,000 = $260,000. Finally, we subtract the cost of the campaign, $260,000 - $300,000 = -$40,000. So, the advertising campaign would reduce profits by $40,000. Therefore, the correct choice is (a).
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Answer:
Farmer and Taylor's respective shares are $102,500 and $32,500
Explanation:
For computing their respective shares, first we have to calculate the remaining income of each partner is shown below:
Remaining income = Net income - received amount
= $135,000 - $70,000
= $65,000
It will be divided equally in 1:1 ratio
So, the remaining income would be
Farmer = $32,500
Taylor = $32,500
Now, Their shares would be
Farmer = Salary received + his share of income
= $70,000 + $32,500
= $102,500
And, for Taylor it would be $32,500