After receiving poor service from her car insurance company, wendy made her complaints public by placing them online. This is a form of word-of-mouth negative advertising. The correct answer would be option D.
Negative word-of-mouth is interpersonal customer conversation about a marketing company or product that disparages the subject of the conversation.
Word-of-mouth is one of the most trustworthy forms of promotion since a customer's reputation is on the line when he speaks favorably or adversely about a product. Negative word-of-mouth marketing can have a long-lasting impact on a business. It might result in a drop in sales for the business and harm its reputation.
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if a perfectly competitive firm determines that mr > mc, then to increase its profit the firm will its production
if a perfectly competitive firm determines that mr >mc, then to increase its profit the firm will its production marginal revenue exceeds marginal cost.
In economics, the marginal cost is the trade inside the total cost that arises while the quantity produced is incremented, the cost of producing additional quantity. In a few contexts, it refers to an increment of 1 unit of output, and in others, it refers back to the fee of trade of general cost as output is multiplied by way of an infinitesimal amount.
As parent 1 indicates, the marginal price is measured in greenbacks according to the unit, while the general price is in dollars, and the marginal cost is the slope of the whole price, the price at which it increases with output. Marginal price is different from common cost, that's the entire value divided through the variety of units produced.
At each degree of manufacturing and time period being considered, marginal value consists of all costs that modify with the level of production, while fees that don't range with manufacturing are constant. for instance, the marginal value of producing a car will include the charges of exertions and components wanted for the additional car but now not the constant value of the manufacturing unit construction that does not trade with output.
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when buyers are worried that sellers know more about a product than they do, buyers tend to make purchases, which in turn creates . please choose the correct answer from the following choices, and then select the submit answer button. answer choices fewer; deadweight loss fewer; economic surplus more; economic surplus more; deadweight loss
Consumer surplus can additionally be thinking of as the wealth that alternate creates for consumers in a market.
Consumer surplus is measured in dollars.
Graphically, consumer surplus is the vicinity below the demand curve and above the equilibrium price, from zero to the volume traded.
What position do consumers play in the market and how can they affect it?Consumer spending represents the simple supply of demand for products offered in the marketplace, which is half of of what determines the market prices for items and services. The different 1/2 is primarily based on decisions businesses make about what to produce and how to produce it.
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https://brainly.com/question/13573671#SPJ4Supply chains for services are easier to define than supply chains for manufactured goods.
a. True
b. Flase
Supply chains for services are easier to define than supply chains for manufactured goods.
a. True
b. False
As liv golf expands to 14 events in 2023, how much money will be available to competitors in the upcoming season?.
The 2023 programme for LIV Golf will include 14 tournaments with 48 players competing on 12 well-established team franchises for an unprecedented $405 million in prize money, the circuit announced on Wednesday.
What is LIV Golf?The Public Investment Fund, Saudi Arabia's sovereign wealth fund, provides funding for the professional golf tour known as LIV Golf. The term "LIV" relates to the Roman numerals for 54, the result on a par-72 course if every hole were birdied, and the total number of holes required to complete a round at a LIV event. On June 9, 2022, at the Centurion Club outside of London, England, the first LIV Golf Invitational Series competition began. The LIV Golf League will replace the Invitational Series in 2023. The tour has been generally characterised as an effort by the Saudi monarchy, which has come under fire for its graft and violations of human rights, to boost its public image through sports washing.
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kayla has made her sales quota every month during the past year except for last month. when her boss conducts her performance appraisal, he focuses on this factor, rather than looking at her sales performance during the previous 11 months. this is an example of .
Kayla's boss is an example of The Recency Effect.
It is the tendency to remember the most recently present information best. For example, if you are trying to memorize a list of items, the recency effect means you are more likely to recall the items from the list that you studied last.
Why Kayla's boss is an example of The Recency Effect?
It is because her boss when conducts performance appraisal of Kayla, he only focuses on this factor (the last month sales quota). For the past year, Kayla did outperform the quota but her boss only remembered the one failure that she did last month. It means, he forgot about Kayla's performance for the 11 months and only remembered the last month's performance.
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which one of the following short-run cost curves would not be affected by an increase in the wage paid to a firm's labor? group of answer choices average fixed cost average variable cost average total cost marginal cost
Average total cost curves would not be affected by an increase in the wage paid to a firm's labor.
In political organizing, a just wage is the amount of pay that enables employees to support themselves and their families in a wage way that is consistent with human dignity, without having to work a second job or rely on government assistance. American English prefers the spelling labor, and the rest of the English-speaking world prefers the spelling labor. One exception is the Australian Labor Party, which is referred to using the American spelling there.
Their labor is the collective or individual term for the work they perform. For the fruits of his labor, every man should be paid fairly.
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a monopolist's profit-maximizing level of production will occur:
The level of output that maximizes a monopoly's profit is when the marginal cost equals the marginal revenue.
How Is Profit Maximized in a Monopolistic Market?In a monopolistic market, a single company produces a single well. A monopolist firm's propensity to maximize profits is one of its defining characteristics. Because there is no competition in a monopolistic market, the monopolist has complete control over the price and quantity requested. The level of output where a monopoly's profit is maximized occurs when the marginal cost and marginal income are equal. On the other hand, in a market where there is competition, rivals tend to push down the marginal cost and reduce profitability.To learn more about Monopolistic Market refer to:
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great outdoors company operates a store in downtown denver that has five departments including a fishing department. if the fishing department is closed, the store manager's position will not be affected, but if the entire store is closed, the manager will be terminated. which of the following lessons should be learned from this example?
The lessons learned from this example is that relevance of costs is context sensitive .
What is relevance?The idea of relevance is that two topics should be related in such a way that it is beneficial to take the second topic into account when taking the first. Numerous disciplines, including cognitive sciences, logic, library and information science, and others, have examined the idea of relevance. However, epistemology is where it is examined most fundamentally (the theory of knowledge). The implications of various theories of knowing for what is deemed pertinent vary, and these fundamental beliefs have repercussions for all other domains as well. The relevance of family interaction studies increases if you think that poor mother-child communication is the root of schizophrenia. The study of genes becomes important if, on the other hand, you accept the genetic explanation of relevance.
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a stock recently paid a dividend of 3 per share, its growth rate is expected to be 8 percent. investors require a 10 percent return. the stock is selling in the market for 140. what is the stock worth and is the stock undervalued or overvalued
Before making an investment or working with a company on a particular project, people try to figure out how much profit they will make.
There are numerous methods for determining an investment's return, and investors or businesses typically seek a required rate of return before proceeding with an investment or project.
What is the Required Return Rate, or RRR?
An investor's minimum profit (return) for taking on the risk of investing in a stock or other security is known as the required rate of return (RRR).
The profitability of a project in relation to the expense of funding it can also be calculated using RRR. The level of risk involved in making a commitment to a particular project or investment is indicated by RRR. The level of risk is proportional to the return.
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If a firm is earning an accounting profit, it is definitely earning an economic profit that is at least as large as the accounting profit too True or False
True, While a firm earning an accounting profit is definitely earning an economic profit, it is possible for the economic profit to be larger than the accounting profit.
The accounting profit:Accounting profit is the difference between the total revenue and the total costs of a company. The total costs include both the explicit costs and the implicit costs. The explicit costs are the direct costs that are incurred in the production of the good or service. The implicit costs are the opportunity costs that are incurred when the company uses its resources for something other than production.
The accounting profit is important because it provides a measure of how much revenue a company has generated from its activities. It is also a useful tool for managers to use when making decisions about how to allocate resources.
One limitation of accounting profit is that it does not take into account the opportunity cost of the resources that a company uses. For example, if a company uses its factory to produce widgets, the opportunity cost of using the factory is the revenue that the company could have earned if it had used the factory to produce something else. This opportunity cost is not included in the accounting profit.
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the gomez family just moved into their dream home. they purchased the home for $264,985, and it appraised at $272,402. the assessment ratio for their area is 25%, and the tax rate for their area is 2.8%. what is their annual tax bill?
The gomez family just moved into their dream home. Their annual tax bill is $ 68,100 and $ 1907.
Calculating the problem:1. Ratio for their area is 25%
($272,402 x 0.25)
= $68,100
2. Times that number by 0.028
($68,100 x 0.028)
= $1907
What is tax rate?
A tax rate is a chance at which an individual or pot is tested. The civil government and numerous of the countries, uses a progressive tax rate system, in which the chance of tax charged increases as the quantum of the person's or reality's taxable income increases.
How is tax rate calculated?The most straightforward way to calculate effective tax rate is to divide the income tax expenditure by the earnings( or income earned) before levies. Tax expenditure is generally the last line item before the nethermost line — net income — on an income statement.
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Assume that there is an annual coupon paying bond on the market priced at $850 and that the bond comes with a face value of $1,000. The coupon rate for the bond is 15% and the bond will reach maturity in 7 years. Calculate bond's YTM?
Annual coupon = Coupon rate × face value
Annual coupon = (15 / 100) × 1000 = $150
YTM = 19.05%
Keys to use in a financial calculator:
FV 1000
PV -850
PMT 150
N 7
CPT I/Y
19.05%
Finance is crucial in strengthening business finance as it enables organizations to take risks and develop. groups should do what they desired with no monetary aid in the past. however now, with the increased use of technology and globalization, agencies are becoming more reliant on money to perform their dreams.
The term "finance" refers to financial sports that assist the lives of individuals, groups, and governments. a number of those activities encompass banking, borrowing, saving, and making an investment. Finance also refers back to the look at money and monetary equipment which can be part of a country's monetary machine.
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companies that are interested in using celebrity endorsers for their products but are worried about image problems sometimes consider blank athletes that are more low risk. multiple choice question. up and coming professional high school retired
Such companies consider Retired athletes that are at more low risk.
How do celebrity endorsement work ?
In an advertising campaign known as celebrity branding or celebrity endorsement, a well-known person is utilised to raise awareness of a good or service by their social standing in exchange for cash or other considerations. A professional athlete in any sport, such as football or athletics, might suggest a particular line of athletic shoes. The concerned athlete would then show up in commercials for shoe companies. All of their games, including practises and competitions, would be played in the same shoes. Endorsements are a type of advertising that tries to earn the public's trust, respect, or awareness and uses celebrities and prominent figures as spokespersons. Brand ambassadors are people who use their names or images to advertise a good or service.
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if addison uses the weighted average cost method, what is the inventory balance at the end of september?
Addison, Inc. uses a perpetual inventory system. Below is information about one inventory item for the month of September.
Sep. 1 Inventory . 20 units at $20
4 Sold 10 units
10 Purchased 30 units at $25
17 Sold 20 units
30 Purchased 10 units at $30
If Addison uses the weighted average cost method, The inventory balance at the end of September = $775
What is Inventory ?
Inventory refers to goods and materials that a company holds for resale, production or use.
Warehouse management is a discipline mainly concerned with determining the shape and placement of goods in a warehouse. It must precede regular and planned production and storage of materials in different parts of the factory or in several parts of the service network.
The concept of stocks, inventories or work in progress has been extended from production systems to service companies and projects, generalizing the definition to "every work included in the production process - every work that is or happened before the production process. is completed".
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Which of the following are principles of internal control?
a. Increase revenues.
b. Reduce vendor payables.
c. Perform regular and independent reviews.
d. Divide responsibility for related transactions.
e. Establish responsibilities.
f. Maintain adequate records.
Maintaining adequate records is the following principle of internal control.
Internal control is a procedure for ensuring that an organization's objectives in operational effectiveness and efficiency, accurate financial reporting, and compliance with laws, rules, and policies are met, according to the definitions of accounting and auditing.
It is a method for managing, tracking, and evaluating an organization's resources. It is crucial to the organization's efforts to identify and stop fraud as well as to safeguard its material (such as equipment and property) and intangible (such as human capital) resources (e.g., reputation or intellectual property such as trademarks).
Internal control objectives at the organizational level have to do with the accuracy of financial reporting, timely feedback on the accomplishment of operational or strategic goals, and adherence to legal requirements.
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at the end of 2010, what was littleland's debt to gdp ratio? give your answer to the nearest whole percentage point.
At the end of 2010, what was little lands debt to GDP ratio was the nearest whole percentage point 4% .
The market value of all the finished goods and services that nations produce and sell in a given time period is measured in dollars by their gross domestic product (GDP). This measurement is frequently revised before being regarded as a reliable indicator due to its subjective and complicated nature. Gross domestic product (GDP) is a monetary indicator of the market value of all finished goods and services produced during a given period and sold (not resold). Debt is an obligation that requires one party, the debtor, to pay another party, the creditor, money or another agreed-upon value. Debt differs from an immediate purchase in that it requires a deferred payment or series of payments.
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what is the effect of using fifo during a period of rising prices under a perpetual inventory system?
The FIFO technique of inventory valuation will provide the lowest cost of products sold during periods of rising prices since you are "selling" the older, lower-priced goods first.
The process of estimating an asset's or business's value is called valuation. Valuation is crucial because it tells potential buyers how much to offer for a firm or asset and tells potential sellers how much to ask for their wares. Analysts use valuation to establish the current or anticipated value of a stock, business, or asset. In order to identify promising investment candidates, valuation involves valuing a security and comparing the result to the current market price. The appraiser's identification of the appraisal issue marks the start of the valuation procedure, which concludes with their reporting of a result to you. Estimating market value is the most frequent job for an evaluation. Values that are frequently used include market value, book value, enterprise value, and stock value.
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Which of the following is least likely to contribute to going concern value? a. High liquidation value b. Extra earning powerc. Future investment opportunitiesd. Intangible assets
High liquidation value is least likely to contribute to going concern value. Thus, the right option is (a.) High liquidation value.
What is a liquidation value?The liquidation value of a firm's physical assets is the net worth of the assets if the company goes out of business and the assets are sold. The liquidation value is the amount paid for the company's real estate, fixtures, equipment, and inventory. Intangible assets are not included in a corporation's liquidation value.
Intangible assets such as a company's intellectual property, goodwill, and brand recognition are not included in the liquidation valuation. However, if a firm is sold rather than liquidated, the going-concern value is determined by both the liquidation value and the intangible assets. To decide if a company's stock is now a smart buy, value investors look at the gap between its market capitalization and its going-concern value.
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per-unit variable cost would be $3. if her available land has design and effective capacities of 3,000 and 2,000 rosebushes per year, respectively, and she expects to be 80 percent efficient in her use of this land, how many rosebushes does rose plan to grow each year on this land? multiple choice
Per-unit variable cost would be $3. if her available land has design and effective capacities of 3,000 and 2,000 rosebushes per year, respectively, and she expects to be 80 percent efficient in her use of this land, 2,000 rosebushes does rose plan to grow each year on this land.
What is variable cost ?Variable costs are costs incurred when the quantity of goods or services produced by a business changes. Variable cost is the sum of the marginal costs of all units produced. It can also be considered a normal expense. Fixed and variable costs form he two components of total cost. Direct costs are costs that can be easily assigned to specific cost objects. For example, variable manufacturing overhead is a variable cost that is an over rather than a direct cost. Marketing needs to know how costs are divided into variable and fixed costs. This distinction is important for predicting the revenue from various changes in sales, and therefore for predicting the financial impact of planned marketing campaigns. In a survey of nearly 200 senior marketing managers, 60% said variable and fixed cost metrics were very helpful.To learn more about variable cost from the given link :
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the idea behind comparative advantage reflects the possibility that one party quizlet
The idea behind comparative advantage reflects the possibility that one party may be able to produce something at a lower opportunity cost than another party. A lower opportunity cost results in a comparative production advantage.
What does it mean to have a lower opportunity cost?When opportunity costs are minimal, a person can take advantage of an opportunity with little sacrifice or loss of resources. When one good has a comparative advantage, another must have a comparative disadvantage. A comparative disadvantage cannot exist in every good. To have an absolute edge, one must be able to generate more of every good.
The opportunity cost of continuing to accept just cash as payment can impede the expansion of your company and reduce revenues. How rapidly a company can convert its assets into cash is known as its liquidity. Being liquid in a market enables organizations to quickly respond to new business possibilities without reducing the value of their assets.
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a monopoly firm is a ______________ and faces a __________ sloping demand curve.
A monopoly firm faces a downward sloping demand curve and is a price seeker.
According to Irving Fisher, a monopoly is a market where there is "no competition," which results in a situation where a specific individual or business is the only supplier of a specific good or service. This contrasts with monopsony, which refers to a single entity's dominance of a market to buy a good or service, and oligopoly and duopoly, which consist of a small number of vendors controlling a market. Thus, the absence of viable substitutes for the good or service, the absence of economic competition for production, and the potential for a high monopoly price that is substantially beyond the seller's marginal cost and generates a high monopoly profit are the characteristics of monopolies.
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Which economic indicator tells you about the future expected profits of businesses?.
For equity investors who are focused on corporate profit growth, the gross domestic product (GDP) may be the most important indicator.
What are expected predictions from economic indicators?
Economists use leading economic indicators to predict how businesses will fare in the future. They look at things like the money supply, real GDP (Gross Domestic Product), and retail and food sales to figure this out.The business cycle's future can be predicted with the help of this list of indicators.
For forecasting, which indicator is utilized?
The inverse value of the mean absolute percentage error, or MAPE, is one widely used indicator of forecast accuracy (Fildes & Goodwin, 2007).MAPE addresses the mean worth of the outright rate contrasts between anticipated values and genuine qualities.
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professor tabarrok says that ideas are nonrivalrous, which means?
According to Professor Tabarrok, ideas are Non rivalrous, meaning that the more gains there are, the better. People may be less likely to pay for new ideas if they are used more frequently, which will lessen the incentive to develop them.
What is a good for the public, for instance?
National defense is an example of a public good. Most likely, an economist would argue that tax revenues should be used to pay for U.S. national defense because: The benefits of national defense cannot be denied to those who refuse to contribute to a fund for the purpose.
The theory that developing economies will eventually catch up to more developed economies in terms of per capita income is known as the catch-up effect. It is based on the national investment law of diminishing marginal returns and the empirical observation that growth rates tend to slow as an economy gets older.
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livingston company uses process costing to account for the production of elastic bands. all direct materials are added at the beginning of the process, and conversion costs are incurred uniformly throughout the process. beginning inventory consisted of $16,600 in materials and $10,600 in conversion costs. april costs were $74,600 for materials and $82,600 for conversion costs. during april 10,600 units were completed. ending work in process inventory was 6,600 units (100% complete for materials, 50% for conversion). the cost per equivalent unit for conversion costs using the weighted-average method would be:
The first option is correct which is $16.184
Computation of Equivalent unit of Production
Units accounted for:
Unit completed & Transferred out
In Physical Units = 11600
In Material = 11600
In Conversion = 11600
Units in ending inventory:
In Material (50%) = 5800
Conversion (50%) = 2900
Equivalent units of production
In Physical Units = 17400
In Material = 17400
In Conversion = 14500
Computation of Cost per equivalent unit
Particulars =
Opening WIP =
In Physical Units = $32,000
In Material = $44,000
In Conversion = $76,000
Cost Added during Period =
In Physical Units = $90,000
In Material = $89,000
In Conversion = $179,000
Total cost to be accounted for
In Physical Units = $122,000
In Material = $133,000
In Conversion = $255,000
Equivalent units of production
In Physical Units = 17400
In Material = 14500
Cost per Equivalent unit
In Physical Units = $7.011
In Material = $9.172
In Conversion = $16.184
Hence the final answer is $16.184
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most stores offer rotating promotions that provide discounts on various products. however, at many of them, you must become a rewards member to take advantage of the deals. the price of the membership is free. you are probably familiar with this process at grocery stores, pharmacies, and even pet supply chains. a. identify each hurdle that shoppers must typically clear to obtain these promotional deals. taking time to fill out a form divulging personal information, such as one's age and e-mail address remembering to bring the discount card to the store or providing the clerk with your phone number b. rewards membership offerings benefit stores by enabling them to gain a unque competitive advantage, so that they can dominate the market. make sales they would not otherwise make. track data, such as buying habits, on their customers.
A. All three options are valid.
In order to avail of the discounts, a consumer needs to bring membership cards. also, a consumer needs to fill out a form that involves divulging personal information.
B. Options 1 and 1 are valid.
The membership details help a firm track various information about the consumer. It also helps the firms make additional sales. However, this advantage is not unique to the firm as other firms can easily copy this strategy.
The membership type method is the type of membership for which a man or woman applies each being a sub-class of voting Member or Non-vote casting Member. The membership type defines the advantages received by using contributors in any given club for 12 months as determined by way of the Board from time to time; sample 1Sample 2Sample three.
The club procedure was applied to invoke membership policies that examine whether a provided records set for a consumer document and the associated facts satisfy the necessities to permit the magnificence club.
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what is the best way to establish desirable team norms? seek input from non-team members. let them develop naturally. define them during the adjourning stage of development. clearly state them when the team is created. select team members with opposing values.
Discussions on norms should involve all members to assist ensure that everyone understands, accepts, and can commit to upholding them. Additionally, it aids in preventing inadvertent negative effects on team members.
What are the team norms?Team norms are standards established by the team for how its members should conduct, interact, and communicate, such as during meetings. They facilitate more effective decision-making, set clear guidelines on how each team member should behave and contribute to the group, and help new team members integrate more smoothly.
Team norms are crucial because they keep everyone on the team aware of the anticipated behavior, avoiding conflicts and misunderstandings in the process. Ask your bosses to have their staff try out this exercise:
Ask each team member to list the reasons why that team was so terrible. Request that each team member share their personal experiences with the others.They can each share their experiences in turn.Learn more about team norms with the help of the given link:
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computer repair shop had received a number of complaints on the length of time it took to make repairs. the manager responded by increasing the repair staff by 10 percent. complaints on repair time quickly decreased, but then complaints on the cost of repairs suddenly increased. oddly enough, when repair costs were analyzed, the manger found that the average cost of repair had actually decreased relative to what it was before the increase in staff. what are some possible explanations for the complaints, and what actions might the manager contemplate?
The salary component of the cost would have grown as the manager added more workers. The higher repair expenses may have been a result of this. The price of repairs has risen in tandem with the daily increase in repair processes.
What is the manager contemplates?The salary component of the cost would have grown as the manager added more workers. The higher repair expenses may have been a result of this. The price of repairs has risen in tandem with the daily increase in repair processes.If the business could previously repair ten computers per day, but is now able to fix fifteen. The cost of repairing the five cars is consequently added to the overall cost of repairing the computers. It was found that the average cost of the repair had decreased when the cost of the repair was assessed. This shows that the workers' output has increased.ensuring that all products and services are comprehensive solutions to the customer's issue compatible.The client's time should not be wasted; • Providing the consumer with exactly what they wanted.Offer exactly what is required, when and when it is required.Offer exactly what is required, when and when it is required.As a result, the workshop's effectiveness has increased.Following these recommendations will have a positive impact on the company's financial statement and reduce customer concerns.To learn more about Cost of the repair refer to:
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costa company has a capacity of 40,000 units per year and is currently selling 35,000 for $400 each. barton company has approached costa about buying 2,000 units for only $300 each. the units would be packaged in bulk, saving costa $20 per unit when compared to the normal packaging cost. normally, costa has a variable cost of $280 per unit. the annual fixed cost of $2,000,000 would be unaffected by the special order. what would be the impact on profits if costa were to accept this special order? question 11 options: profits would increase $40,000. profits would increase $60,000. profits would decrease $200,000. profits would increase $80,000
If Costa were to accept this special order there would be an increase of $80,000. Hence, the correct choice of response for this question would be option (d).
Give a brief account on Marginal Production.When all other units remain constant, marginal production is the additional output that a business produces by adding one additional labor unit. You can expand the quantity of product you create by introducing additional production elements. The marginal product is the increased productivity attained by adding more than one work unit. In order to make decisions, identify chances for production improvement, and calculate the marginal revenue product of labor, it is crucial to understand marginal production in business operations.
To solve the question :
As we know that fixed costs are not affected by this special order, we will not consider the annual 2,000,000 outlay. We will only be concerned with our MC and MR in order to determine our additional profit or loss.
Step 1 : Calculate the margin per unit on this special order:
Selling price = $300
Typical Unit Cost = $280
Savings from bulk packaging = $20 per unit
New Cost per unit = (Typical Unit Cost - Savings for bulk packaging)
= $280 - $20
= $260 per unit
Profit per unit = (selling price - new cost per unit)
= $300 - $260
= $40 per unit
Now, we need to multiply our profit per unit by the amount of units in the special order:
= 2,000 x $40
= $80,000 increase
Hence, there is an increase of $80,000.
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obligations associated with disposition of property, plant, equipment, or natural resources are called
The obligations associated are known as asset retirement.
Asset retirement is the process of removing an investment or part of an investment from the group of investments. is accounted for in the books as the withdrawal of an asset or a portion of an asset. Retirement happens when a depreciable item is taken out of service without receiving any compensation for its salvage value.
In the process of asset retirement, the asset's net book value, if any, is written off as a loss in addition to the asset's cost and accrued depreciation being eliminated from the books. The section of the income statement titled other income and expense, net contains any realized losses or gains related to the disposition that is recorded in a separate account.
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a perfectly competitive firm earns an economic profit when: a. price is above average variable cost. b. price is above average total cost. c. total cost exceeds total revenue. d. total variable cost exceeds total revenue.
The correct option b. price is above average total cost, best describes the perfectly competitive firm.
Define the term perfectly competitive firm?A perfectly competitive business must accept whatever equilibrium price within which it sells its products because it is a price taker.
A completely competitive business will not be able to generate any sales if it seeks to pay even a small amount above the going rate.According to economic theory, perfectly competitive exists when all businesses sell the same goods, market share has no bearing on prices, businesses can enter or quit the market without any obstacles, consumers have perfect or complete information, and businesses are unable to set prices.The closest example of ideal competition in real life may be a typical farmers' market. Small producers charge relatively similar pricing for products that are almost equivalent.Thus, in price above average total cost results in an economic profit for a perfectly competitive firm.
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