If this is on Odyssey then its Helping
a. What is its percentage rate of return? percent.
b. Is the firm earning an economic profit? .
If so, how large? percent.
c. Will this industry see entry or exit? .
d. What will be the rate of return earned by firms in this industry once the industry reaches long-run equilibrium? percent.
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:
$20,790,000
Explanation:
Since the estimated total costs to complete had not change, the Construction is Process can be estimated as follows:
Construction in Process = Estimated total completion cost - Total costs of completion to date = $38,500,000 - $17,710,000 = $20,790,000
Answer:
True
Explanation:
As long as the statement holds that ''each company's profit depends on whether Little Kona enters...'' and the response of the existing monopoly to charge a low price to keep its market share; then both little Kona and Big Brew have a dominant strategy in this game.
They both will become a duopoly which implies that there will be two players in the industry and the price of Big Brow will be greatly influenced by the presence of Little Kona. Big Brow could charge as high as $8 if Little Kona is absent but as low as $2 if Little Kona is enters the industry.
Obviously they both have a dominant strategy, considering further that the entrance of Little Kona changes the industry structure from monopoly to duopoly
Determine the new selling price to break even next round.
Answer:
$18.80
Explanation:
New selling price = Old selling price - Adjustments
Old selling price = $19.00, Adjustments = 1 quarter of reduced raw material costs difference
New selling price = $19.00 - ($8.13 - $7.33)/4
New selling price = $19.00 - $0.20
New selling price = $18.80
So, the new selling price to break even next round is $18.80.
Answer:
The correct answer is $7.94.
Explanation:
According to the scenario, the computation of the given data are as follows:
Total value of shares = ( 320,000 × $40 ) + ( 420,000 × $45) + (520,000 × $10) + 720,000 × $15)
= $12,800,000 + $18,900,000 + $5,200,000 + $10,800,000
= $47,700,000
So we can calculate the net asset value by using following method:
Net asset value = (Total value - Expenses ) ÷ Shares Outstanding
By putting the value, we get
= ( $ 47,700,000 - $ 40,000) ÷ $6,000,000
= $7.94
Answer:
Part 1. Calculate the total prime cost for last week
Direct materials 28,000
Add Direct labor 28,000
Prime Cost 56,000
Part 2. Calculate the per-unit prime cost
per-unit prime cost=$56,000/5,600
=$10.00
Part 3. Calculate the total conversion cost for last week
Direct labor 28,000
Add Manufacturing Overheads 55,000
Total conversion cost 83,000
Part 4. Calculate the per-unit conversion cost.
per-unit conversion cost=$83,000/5,600
=$14.82
Explanation:
Part 1. Calculate the total prime cost for last week
Prime Cost = Direct Materials + Direct Labor
Part 2. Calculate the per-unit prime cost
Per Unit Prime Cost = total prime cost/number of units manufactured
Part 3. Calculate the total conversion cost for last week
Conversion Cost = Direct Labor + Manufacturing Overheads
Part 4. Calculate the per-unit conversion cost.
Per-unit conversion cost =Total Conversion Cost / number of units manufactured
The total prime cost last week was $56,000, and the per-unit prime cost was $10. The total conversion cost was $83,000, and the per-unit conversion cost was $14.82.
The prime cost is calculated by adding the costs of the direct materials and direct labor. Therefore, the total prime cost for Slapshot Company last week was $28,000 (direct materials) + $28,000 (direct labor) = $56,000.
The per-unit prime cost is calculated by dividing the total prime cost by the number of units produced. Therefore, it is $56,000 ÷ 5,600 hockey sticks = $10 per unit (rounded to the nearest cent).
The conversion cost is calculated by adding the cost of direct labor and manufacturing overhead. Therefore, the total conversion cost last week was $28,000 (direct labor) + $55,000 (overhead) = $83,000.
The per-unit conversion cost is calculated by dividing the total conversion cost by the number of units produced. Therefore, it is $83,000 ÷ 5,600 hockey sticks = <-strong>$14.82 per unit (rounded to the nearest cent).