Answer:
True
Explanation:
Prices in a free market co-ordinate the buying and selling decisions in the market. In their rationing role, prices inform the distribution of goods and other resources throughout the economy. Prices motivate firms by acting as incentives that provide a standard of measure of value throughout the world. Prices direct producers and consumers, thereby acting as signals to educate producers and consumers on how to adjust their production and consumption decisions.
Answer:
A monopolist does not have a supply curve because price and quantity are decided at the same time.
Explanation:
A supply curve is generally upward sloping showing a direct relationship between the price level and quantity supplied. In case of a perfectly competitive market, the demand curve is a horizontal curve, showing marginal; revenue and average revenue. The firm here is a price taker and decides the quantity to be supplied according to the price level. The firm is able to maximize profit at the level of output where the price is equal to marginal cost.
However, in case of a monopoly, the firm is a price maker. There is no unique relation between price and quantity. The price and quantity to be supplied are determined at the same time at the point where marginal revenue is equal to marginal cost.
Unlike a competitive firm, a monopolist does not have a supply curve since they set both their price and production quantity. They use their marginal revenue and marginal cost to determine these, setting their price at the highest amount consumers are willing to pay for their profit-maximizing quantity. A monopolist's marginal revenue is generally less than their product's price.
Contrary to a competitive firm, a monopolist does not have a defined supply curve because they determine both their price and production quantity. This ability is due to the monopolist's unique position as the sole supplier in the market. However, they don't set these arbitrarily; their decisions are guided by their marginal revenue—the additional income from selling one more unit—and their marginal costs. Where these two meet is their profit-maximizing quantity, and the highest price consumers are willing to pay for that quantity becomes the price. It's essential, however, to remember that a monopolist's marginal revenue is typically less than the price they charge for their product, which is why we say they don't have a supply curve.
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Answer:
$5,220
Explanation:
Given that
Estimated from ageing analysis = $5,900
Unadjusted debit balance of the Allowance for Doubtful Accounts = $680
The calculation of Bad Debt Expense is given below:-
The estimated Bad Debt Expense for the current year = Estimated from ageing analysis - Unadjusted debit balance of the Allowance for Doubtful Accounts
= $5,900 - $680
= $5,220
Therefore for computing the bad debt expenses for the current year we simply applied the above formula.
Answer: b.
damages should be measured by the difference between the contract price and the market price of the goods at the port of shipment
Explanation: Because the contract has already been initiated and was defaulted by the seller. The Judge would ask him to pay for damages. And this will be measured by subtracting the contract price of the goods from the market price. I.e the price the goods would gave been sold and the price the seller accepted to sell to the buyer according to the contract they signed.
Answer:
Return on investment = -0.07215 or -7.215%
Explanation:
The rate of return or percent return on the investment can be calculated by deducting the initial cost of the investment from the current value of the investment and dividing it by the initial cost.
The return provided by the investment can be calculated by adding the returns provided in form of dividend and capital gains both. Thus, the return can be calculated as follows,
Total dividend = 1.25 * 200 = $250
Total selling value = 35.4 * 200 = $7080
Total value = 250 + 7080 = $7330
Return on investment = (7330 - 7900) / 7900 = -0.07215 or -7.215%
Answer:
$23,000
Explanation:
LLC interest for $18,000 +$5,000 one-fourth share of the LLC’s debt
=$23,000
Therefore If Andy bought Bruce’s LLC interest for $18,000, Andy’s outside basis in Arlington, LLC will be $23,000 because Andy's basis would equal the amount he paid for his LLC interest plus his share of the LLC debt which is why he would have a starting basis of $18,000 + $5,000 of LLC debt, or $23,000
Answer:
Explanation:
Tony purchased 100 shares of T-Rex stock for $43 a share. On the same day, Sam also purchased 100 shares of T-Rex stock for $43 a share. Tony paid cash for his purchase while Sam used margin. The initial margin requirement on this stock is 60 percent while the maintenance margin is 40 percent. Both Tony and Sam sold their shares after eight months at a price of $40 a share. The stock pays no dividends. Tony had a holding period percentage return of -6.98 percent as compared to Sam's -11.63 percent return. Ignore margin interest and trading costs.
Tony HPR without margin= [100 - ($40-$43)]/(100 x $43)
= -6.98%
Sam HPR without margin= [100 - ($40-$43)]/(100 x $43 x 60%)
= -11.63%