when monopolistically competitive firms realize losses in the short run, some firms will ___ the industry, ____ market shares and prices and eliminating losses for the remaining firms
exit
increasing

Answers

Answer 1

When monopolistically competitive firms realize losses in the short run, some firms will exit the industry, increasing market shares and prices and eliminating losses for the remaining firms.

Monopolistically competitive is a form of imperfect competition in which a large number of producers or organisations market distinctive goods that are not exact replacements. Restaurants, shoe stores, clothing brands, and other businesses or organisations are examples of those participating in monopolistic competition.

Generally speaking, a monopolistic competitive market is one that has a relatively low entry barrier and a high number of firms (producers).

Therefore, in a monopolistic competition, firms have some influence over pricing, make their own choices, and ultimately have the freedom to enter or depart the market. As a result, these businesses incorporate aspects of both monopoly and competition.

The marginal revenue of a monopolistically competitive firm equals the marginal cost when it reaches long-term equilibrium.

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Related Questions

a set of priority planning techniques for planning component items below the end item level is called:

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The set of priority planning techniques for planning component items below the end item level is called as material requirements planning (MRP).

MRP is the system which establishes a schedule plan that illustrates the quantity of components required at each level of assembly and, based on lead times, calculates the time when these components will be needed. It helps to avoid the missing errors. This system also helps to evaluate the time needed for shipping the whole set of items. However it faces some limitations related to inventory management, quality control, supply demand etc. The other three inputs of an MRP system are given below:

Master Production Schedule (MPS)Inventory Status File (ISF)Bill of Materials (BOM)

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To refer to complete question, see below:

A set of priority planning techniques for planning component items below the end item level is called:

A) master scheduling

B) material requirements planning

C) capacity planning

D) production control

E) none of the above

the earned income tax credit, a government program that supplements the incomes of low-wage workers, is an example of a

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The earned income tax credit, a government program that supplements the incomes of low-wage workers, is an example of a wage subsidy.

A refundable tax credit for qualified (low-income) taxpayers with earned income is known as the Earned Income Credit (EIC). Wages, self-employment earnings, and legally reimbursable disability benefits are all considered earned income. To be eligible for EIC, a person must follow seven requirements.

Low- to moderate-income individuals, families, and employees can benefit from tax breaks thanks to the Earned Income Tax Credit (EITC). If you meet the requirements, you can use the credit to lower the amount of taxes you owe and possibly boost your refund.

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What kind of claim is used for billing provider fee-for-service claims to commercial health insurance companies?.

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Provider fee-for-service claims are billed to commercial health insurance companies using the CMS-1500 type of claim.

Which claims are submitted using a CMS 1500?

Use the CMS-1500 claim form to submit non-institutional claims to Medicare for healthcare services provided by healthcare professionals such as physicians, other providers, and suppliers. Additionally, it is used to submit claims to numerous Medicaid programs, private payers, and additional public health insurance programs.

Is CMS 1500 a universal claim form?

All licensed healthcare providers are required to submit claims to all medical insurance providers, including Medicare, Medicaid, and Blue Cross, using the CMS-1500 (Health Insurance Claim Form). The HCFA 1500 form was formerly known as the universal claim form, also known as Form CMS 1500.

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Maria Manow is planning to sell handmade quilts over the Internet. As she decides what to charge for a full-sized quilt, Manow will calculate her fixed and variable costs. At this point, Manow will be developing her _____ strategy.

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Manow will now be formulating her pricing approach.

What are the two strategies a business may use to increase the value of its goods?

There are three ways to increase value: by keeping the purchase price constant while delivering more with each purchase; by lowering the purchase price while delivering the same amount of value; or by combining the first two methods.

How can I sell quilts made by hand online?

Etsy is the ideal location to sell any kind of handmade item if you want to earn money doing what you love. Etsy is a homemade haven and a terrific location for various types of creative business owners to profit from selling their expertly crafted quilts.

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in order to succeed in being creative and agile, innovative firm teams must have a hands-off manager. t/f

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In order to succeed in being creative and agile, innovative firm teams must have a hands-off manager. TRUE

A manager is a expert who takes a management position in an business enterprise and manages a team of personnel. regularly, managers are liable for managing a particular department of their agency. there are numerous forms of managers, however they usually have responsibilities like conducting performance evaluations and making selections.

The role of managers is setting up and overseeing a particular organization, assignment or area inside a commercial enterprise. The quantity and scope of a supervisor's responsibilities can vary relying on their function in the business enterprise. The job identify of supervisor can suggest that any individual is handling a group or handling a sure feature.

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use the equation for the line of best fit to predict the salary for an employee with 6 years of experience? (round your answer to the nearest dollar.) $61,150 $58,587 $59,672 $57,990

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The wage for a worker with six years of experience is predicted by the equation for the line of best fit, which is $58,587.

What does slope refer to?

Although it was originally used in English by O'Brien in 1844 when he expressed the equation for a straight line as "y = mx + b," and by Todhunter in 1888 when he wrote it as "y = mx + c," it is unknown why the letter m is usually used to denote slope.

The slope can be calculated by comparing the "vertical change" to "horizontal change" between any two distinct points on a line. The outcome is the same for each ratio when expressed as a quotient ("rise over run").

Any two spots in the specified grid must be taken.

Let the two points are (0, 52000), (1, 53,150)

m=(53150-52000)/(1-0)

m=1150

Therefore, slope=1150

Now, the equation of the line is y=mx+b

52000=1150(0)+c

c=52000

Therefore, y=1150x+52000

For 6 years experience,

Take x=6 then,

y=1150(6)+52000

y=6900+5200

y=58,900

y=$58,900≈58,587

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dante co. allows employees to take two weeks vacation during each year. to account for the two weeks off each year, dante will accrue the vacation benefits with a credit to the account.

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The entry that Dante Co. will make to account for the vacation benefits would be a credit to the Vacation Benefits Payable .

How are vacations accounted for ?

When a company makes a benefit available to its employees , these benefits will be taken out of the companies revenues because the employees will either get monetary compensation, or get time off which means less production for the company . The company would therefore debit these benefits to the relevant expense account to show that they are indeed, expenses .

There will then be a credit to a liability account to show that the company owes its employees these benefits . The credit in this case would be the Vacation Benefits Payable which is the liability account for the vacation benefits promised by Dante Co . to its employees .

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A marketing channel relies on logistics to make products available to consumers and industrial users. Logistics involves those activities that focus on getting the right amount of the right products to the right place at the right time at the lowest possible cost. The performance of these activities is logistics management—the practice of organizing the cost-effective flow of raw materials, in-process inventory, finished products, and related information from point of origin to point of consumption to satisfy customer requirements. A supply chain is a sequence of firms that perform activities required to create and deliver a product or service to ultimate consumers or industrial users. It differs from a marketing channel in terms of membership. A supply chain includes suppliers that provide raw material inputs to a manufacturer as well as the wholesalers and retailers that deliver products. The management process is also different. Supply chain management is the integration and organization of information and logistics activities across firms in a supply chain for the purpose of creating and delivering products and services that provide value to consumers.

Answers

In order to make items accessible to consumers and industrial users, a marketing channel depends on logistics.

In order to make items accessible to consumers and industrial users, a marketing channel depends on logistics. Logistics refers to the actions that are focused on delivering the proper quantity of the proper products to the proper location at the proper time for the least amount of money.

The execution of these tasks is known as logistics management, which is the process of planning the reasonably priced movement of raw materials, inventory of goods still being manufactured, finished goods, and related information from the point of production to the point of consumption to meet customer requirements.

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on july 1, shady creek resort borrowed $450,000 cash by signing a 10-year, 9% installment note requiring equal payments each june 30 of $70,119. what is the journal entry to record the first annual payment?

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The journal entry to record the first annual payment on the amount borrowed by Shady Creek Resort, would be A. Debit Interest Expense $ 40, 500; debit Notes Payable $ 29, 619 ; credit Cash $ 70, 119.

How to record bond payment?

When a bond payment is made, this payment would come from the cash account. This means that the cash account will be credited because cash is an asset and assets are credited when they reduce.

The amount to be credited is the equal payments of $ 70, 119.

The amount to be debited would be the interest amount for the period which would be :

= Interest rate x Amount borrowed

= 9 % x 450, 000

= $ 40, 500

The amount that would go Notes Payable would be:

= Equal payments - Interest

= 70, 119 - 40, 500

= $ 29, 619

Options for this question are:

Debit Interest Expense $ 40, 500; debit Notes Payable $ 29, 619 ; credit Cash $ 70, 119.Debit Interest Expense $37,800; debit Interest Payable $27,644; credit Cash $65,444.Debit Interest Expense $65,444; credit Cash $65,444.Debit Cash $420,000; debit Interest Expense $65,444; credit Notes Payable $485,444.Debit Interest Expense $37,800; credit Cash $37,800.

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How is the marketing department involved in the technical and marketing development stage of the product development process?.

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They evaluate product prototypes with their intended audience to determine the best marketing strategy for the new product.

How about an example of a new product?

Even though it might have been produced in the same form by others, a new product is one that is new to the company that introduces it. For instance, each company has launched a separate brand of toilet soap, which is fresh to the company and therefore new to the market.

What is a novel product?

Products that have not yet been produced or sold by your company but have been introduced to the market by others can be considered "new products." creation of novel products and their introduction to the market. They could be wholly original creations or enhanced and updated versions of already existing products.

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Members of which major political party are more likely to support increasing taxes on the wealthy to reduce budget deficits?.

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Members of major political party which more likely to support increasing taxes on the wealthy to reduce budget deficits are the Democrats, members of the Democratic Party.

What are the beliefs of the Democratic Party?

In general, the Democratic Party (whose logo is a donkey) represents left-leaning, liberal and progressive ideological values, so advocating for a strong government to control business and support for the citizens of the United States. Hence, one of the key values focused by Democrats is social responsibility.

Democrats follow an economic agenda which helps American businesses generate good-paying jobs and ensure that workers have the tools not only to get by but also to get ahead in our global economy.

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This term is used for distributions that investor receives by getting an additional stock of the company as a supplement or instead of cash dividends on the existing stock

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The company as a supplement or instead of cash dividends on the existing stock. A stock dividend is when a corporation distributes a portion of its earnings to its shareholders in the form of additional company shares, either in addition to or in exchange of cash dividends.

The term "stock dividend" refers to the distribution of dividend payments to shareholders in the form of additional firm shares or stocks as opposed to cash. In order to preserve and maintain its cash reserve or because the firm may be experiencing a scarcity of liquid cash reserves, a corporation may prefer to distribute a stock dividend instead of a cash dividend. A stock dividend payment could also be made because of the company's efforts to expand.Investor learns that a business will be distributing a cash dividend to stockholders and that today marks the record date for stock ownership necessary to receive the distribution.You must own a stock before the ex-dividend date in order to qualify as an investor for the next dividend payment. If you buy a stock on or after the ex-dividend date, you are not entitled for the next paid dividend.

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deb has found it very difficult to repay her loans. because of these difficulties, the bank decided to forgive one of her most recent loans, an amount of $53,500. after the loan was discharged, deb had total assets of $260,000 and her remaining loans totaled $226,000. what amount must deb include in her gross income?

Answers

The amount of entries to be computed for Deb as a part of her gross income will be $0.

Gross income can be referred to or considered as the total revenues generated by a person during a particular financial period. The gross income includes earnings and revenues from all the sources that a person may have. It does not take liabilities and insolvency into consideration.

For the above condition, Deb was not fully solvent at the time of computation of her liabilities. However, she became solvent only after selling the part of her assets. Thus,

Solvency = Total Loans - Income before sale of assets

Solvency = 226000+535000 - 0

Solvency =  $(-2795,000)

Therefore, Deb does not have gross income during the accounting period.

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in march, before most consumers begin shopping for summer products, a shoe factory offers retailers a seasonal discount on sandals. what are the purposes of this pricing tactic? (choose every correct answer.)

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This pricing strategy is intended to make it easier to plan the factory's production schedule and to move inventory out of the factory as soon as possible.

Price is a major factor influencing consumer purchases. As a result, businesses use a variety of pricing tactics, also known as pricing strategies, to increase sales, profits, and market share. When a company creates a unique product, it is priced accordingly.

Pricing is one of the more strategic decisions a business can make, but it is frequently treated as a tactic. Consider how frequently pricing is used to entice buyers.

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The Bureau of Labor Statistics divides the adult population into four categories: employed, underemployed, unemployed, and not in the labor force.

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Employment-Population Ratio, Unemployment, Active Job Search Techniques, Unemployment Rate, Not in the Labor Force.

The employment-population ratio shows the proportion of the civilian noninstitutional population that is employed. It is, in other words, the proportion of the population that is employed at the moment.

(Employed Civilian Noninstitutionalized Population) x 100 is the formula for calculating the employment-population ratio.

The percentage of the labor force that is employed that is unemployed is known as the unemployment rate (the labor force is the sum of the employed and unemployed).

(Unemployed Labor Force) x 100 equals the unemployment rate.

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which stakeholder group is most likely to view higher profits as a key objective? a. employees b. shareholders c. suppliers d. customers

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Shareholders are more inclined to consider higher profits as their main objective. Because shareholders are entitled to a return on their investment in the company, they will aim to maximise profits.

What does the term "shareholder" mean?

Investors are more likely to view increased profits as their primary goal. They will want to maximise profits since shareholders have a right to a return on their investment in the business.

Anyone who holds at least one share of a company's stock or mutual fund unit is referred to as a shareholder. Additionally, shareholders, who own the majority of the company's ownership, are subject to certain duties. They can gain from a company's success with this ownership structure. Each shareholder's information is recorded in both the Companies Register and the company's own share register.

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when vince was interviewed for a new position, the interviewer described the company as fostering an involvement culture. which characteristic can vince expect to see at the company if he is hired?

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When Vince was interviewed for a new position, the interviewer described the company as fostering an involvement culture. The characteristic is cooperation.

Cooperation

a scenario in which individuals collaborate to accomplish something: the activities of someone who is helpful by accomplishing what is desired or requested The entire meaning of collaboration may be found in the English Language Learners Dictionary.

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adams inc. began the year with $495,000 in the equipment account. during the year they sold equipment that had originally cost $50,000 for $20,000. the ending balance in the equipment account was $650,000. which of the following statements are true?

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Adams Inc. began the year with $495,000 in the equipment account. During the ear they sold equipment that had originally cost $50,000 for $20,000. The ending balance in the Equipment accounts was $650,000. Which of the following statements are true? B. Adams will report a cash inflow from investing activities of $20,000

a. Adams will reports a cash inflow from investment activities of $50,000

b. Adams will report a cash inflow from investing activities of $20,000

c. Adams cash outflow for the purchase of equipment is $205,000

d. Adams cash outflow for the purchase of equipment is $155,000

The ending balance is the net residual balance in an account. additionally it is measured on the cease of a reporting period, as part of the final procedure. An finishing stability is derived by including up the transaction totals in an account and then including this total to the start stability.

An investment entails placing capital to apply these days for you to boom its price over time. An investment requires setting capital to paintings, inside the form of time, money, effort, and so on., in hopes of a extra payoff within the future than what turned into at the start put in

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Adams will file a coins influx from making investment activities of $20,000.

Balanced dwelling approaches consider all elements of our existing relationships, work, health and health, and emotional well-being. We all get slowed down with paintings and circle of relatives duties once in a while, but making time for ourselves is important so that we will hold up with all our duties.

An investment entails setting capital to use these days as a way to boom its price over the years. Funding requires placing capital into paintings, in the form of time, money, attempt, and many others in hopes of a more payoff in the future than what was originally installed.

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interest rates in the economy have fallen. how will this affect aggregate demand and equilibrium in the short run? group of answer choices aggregate demand will rise, the equilibrium price level will rise, and the equilibrium level of gdp will rise. aggregate demand will fall, the equilibrium price level will fall, and the equilibrium level of gdp will fall. aggregate demand will fall, the equilibrium price level will rise, and the equilibrium level of gdp will fall. aggregate demand will rise, the equilibrium price level will fall, and the equilibrium level of gdp will rise.

Answers

If interest rates in the economy have fallen this will result in aggregate demand will rise, the equilibrium price level will rise, the equilibrium level of GDP will rise.

Gross domestic product is a monetary measure of the market value of all final goods and services produced and sold by countries during a given period. Due to its complex and subjective nature, this measure is often modified before it is considered a reliable indicator.

However, GDP per capita does not reflect differences in cost of living and inflation rates across countries; therefore, using a purchasing power parity (PPP) GDP per capita basis may be more useful for comparing living standards across countries, while nominal GDP is more useful for comparing economies country in the international market.

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the unemployment rate is currently 6% higher than the natural rate of unemployment. the current quantity of output is greater than potential output. the natural level of output is $3 trillion.

Answers

unemployment rate is currently=[tex]-30303030296.969[/tex]

If unemployment rate =x

then unemployment rate is currently=x+6

output =  $3 trillion

The unemployment rate is calculated = (Unemployed ÷  output ) x 100.

x+6=x/3 trillion *100

x-100x=[tex]3 000,000,000,000 -6[/tex]

x=[tex]-30303030302.969[/tex]

unemployment rate is currently=x+6

[tex]=-30303030302.969+6=-30303030296.969[/tex]

There are several factors that affect both the supply side, or the workers, and the demand side, or the employers, that contribute to unemployment. High interest rates, a global economy that is in a recession, and the financial crisis can all have an impact on demand. Frictional unemployment and structural employment are two significant supply-side contributions.

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parker (i.e., the principal) orally asks austin (i.e., the agent) to sell a ranch that parker owns. austin finds a buyer and signs a sales contract on behalf of parker to sell the ranch. which rule applies here?

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As soon as Austin finds a buyer and executes a sales contract on Parker's behalf to sell the ranch, the power of attorney rule is in effect.

What is power of attorney?

A power of attorney (POA), sometimes known as a letter of attorney, is a document that grants someone the right to represent or handle another person's interests in business, legal, or other private matters (including financial and health-related matters).

The principal, grantor, or donor is the party giving the other permission to act (of the power). The agent, attorney, or, in some common law countries, the attorney-in-fact, is the one who has the power to act.

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the main reason auditors investigate property, plant, and equipment that has been replaced, sold, dismantled, or abandoned during the year is to

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This is the text of the Auditing and Assurance Standards Board's (AASB) Guidance Note on Audit of Property, Plant, and Equipment (PPE).

which deals with real estate, machinery, and equipment?

According to this recognized concept, an organization examines all of its costs for property, plant, and equipment as they are incurred. These expenses cover both the original expenditures of purchasing or building a piece of property, plant, or equipment as well as the ongoing costs of maintaining, repairing, or adding to it.

What are the goals of an audit of property, plant, and machinery?

Determine whether the listed property, plant, and equipment are complete. Check the clerical accuracy of the property, plant, and equipment schedules. Identify whether the cost of the valuation or allocation of General accepted accounting principles are followed with regard to property, plant,

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at the point where the benefit of another hour of work exactly equals the opportunity cost, the worker becomes indifferent between spending the next hour on

Answers

When there is a shortage of resources, there must be unavoidable trade-offs; achieving one goal more often implies achieving other goals less.

What is a resource?

When we talk about resources, we're talking about all the things that are available to us that are environmentally friendly, economically viable, and culturally sustainable and that help us meet our needs and desires. Resources can be broadly categorized based on their availability into renewable and non-renewable resources. With time and evolving technology, an object might become a resource. Increased wealth, the smooth operation of a system, or improved wellbeing are only a few advantages of resource use. Resources have been produced in a variety of well-established fields of study, including economics, biology and ecology, computer science, management, and human resources, for example. These concepts are linked to those of competition, sustainability, conservation, and stewardship. Commercial or non-commercial elements that are applied within human civilization necessitate resource management and resource allocation.

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on january 1, year 1, poultry processing company purchased a freezer and related installation equipment for $62,100. the equipment had a three-year estimated life with a $3,600 salvage value. straight-line depreciation was used. at the beginning of year 3, poultry processing revised the expected life of the asset to four years rather than three years. the salvage value was revised to $2,600.'Required Compute the depreciation expense for each of the four years, Year 1-Year 4
Depreciation Expense
Year 1
Year 2
Year 3
Year 4

Answers

Depreciation Expense

Year 1 = $21,700

Year 2 = $21,700

Year 3 = $11,350

Year 4 = $11,350

Explanation:

depreciation expense for years 1 and 2 = ($69,600 - $4,500) / 3 = $21,700

book value at the end of year 2 = $26,200

depreciation expense for years 3 and 4 = ($26,200 - $3,500) / 3 = $11,350

Depreciation: What is it?

Depreciation is a term used in accounting to describe two related concepts: first, the actual decline in an asset's fair value over time, such as the value of factory equipment declining annually as it is used and wears out; and second, the allocation in accounting statements of the asset's initial cost to the periods during which the asset is used (depreciation with the matching principle).

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Ellis company issues 6. 5%, five-year bonds dated january 1, 2021, with a $250,000 par value. The bonds pay interest on june 30 and december 31 and are issued at a price of $255,333. The annual market rate is 6% on the issue date.

Answers

The total bond interest expense over bonds’ life is $77,500.

What is interest expense?

The expense of paying interest is a cost associated with borrowing money. In exchange for using its cash, a lender charges a borrower a fee. The cost of borrowing funds from banks like banks and bond investors can be displayed on the income statement as interest expense. Because it pertains to the capital structure of a firm and is typically tax deductible, interest expense differs from operational expense and CAPEX. Interest revenue and interest expense are often combined under the heading "interest income - net," but are usually shown separately on the income statement. After it has been determined how much interest will be paid, the borrower would typically record the amount as accrued liabilities. Credit would be given to accrued liabilities and debit would be given to interest expense.

Interest expense=250000*0.31=77500.

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Oil prices are denominated in terms of _____ in international commodities markets.

Answers

Oil prices are denominated in terms of greenbacks in global commodities markets.

What are the major commodity markets?

The fundamental U.S. commodity exchanges are ICE Futures U.S. and the CME Group, which holds four principal exchanges: the Chicago Board of Trade, the Chicago Mercantile Exchange, the New York Mercantile Exchange, and the Commodity Exchange.

What are 5 examples of commodities?

Some common examples of commodities consist of grains, gold, beef, oil, and herbal gas. More recently, the definition has elevated to consist of financial products, such as overseas currencies and indexes. Technological advances have additionally led to new kinds of commodities being exchanged in the marketplace.

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henry ford's business model required a much more efficient and cheaper system for building cars and the assembly line method facilitated this. however, workers became bored with the same repetitive tasks and quit, so ford had the expense of constantly hiring and training new workers. how did ford solve this problem?

Answers

Answer:

He increased worker pay.

Ford paid his workers more to make up for the monotonous work.

Explanation:

One of the most well-known businessmen in history is Henry Ford. He improved transportation while also fundamentally altering the American auto industry. His inventive manufacturing technique resulted in affordable, dependable vehicles while also keeping his employees happy and devoted.

Ford makes money by licencing the use of its brand name and badge on a variety of products, including toys, video games, and dealerships. It was broken down into four simple goals in the memo distributed to all employees: assemble the whole Ford workforce as one global team. Utilise Ford's distinctive automotive expertise and resources. Build trucks and cars that people will appreciate and want.

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Which of the following are contract rights may be assigned? The right to receive future worker's compensation benefits The right to receive house cleaning services The right to insure a property Payment of$500

Answers

The right to receive house cleaning services are contract rights that can be assigned.

A legally binding agreement between two or more parties is called a contract that establishes, clarifies and stipulates the respective rights and obligations of the parties. The subsequent delivery of goods, services, money, or the promise to deliver any of these are common elements of a contract.

The aggrieved party may seek legal remedies such as damages or contract termination for breach of contract. Agreements must be respected, which is the foundation of contract law, a branch of contract law that deals with contracts. Like other aspects of private law, contract law varies from country to country.

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a marketer is scheduling creatives for their upcoming campaign in campaign manager 360. what is one thing they need to do to ensure an ad will run every time?

Answers

One thing they need to do to make sure an ad runs every time is for your account to exclusively serve across mobile devices.

Account - What Does That Mean?

A record in such an accounting system known as an account keeps track of the financial transactions involving a particular asset, liability, capital, revenue, or expense As the company events take place throughout the course of the accounting period, these records grow and shrink.

Why are accounts crucial?

Accounting is crucial to running a business because it makes it simpler to keep track pf income and expenses, guarantees legal compliance, and provides access to terms of quantitative data that can be utilized by investors, management, and indeed the government to make choices.

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assume a simplified banking system subject to a 10 percent required reserve ratio. if there is an initial increase in excess reserves of $90,000 and all possible loans are made, the money supply:

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Assume a simplified banking system subject to a 10 percent required reserve ratio. if there is an initial increase in excess reserves of $90,000 and all possible loans are made, the money supply increased 900000.

In macroeconomics, the term "money supply" refers to the total amount of currency that the general population owned at a particular period. Although there are numerous ways to define "money," the money in circulation and demand deposits are frequently used as conventional metrics. A country's central bank is permitted to define what counts as legal tender on its own terms. Data on the nation's money supply are normally gathered and released by a government agency or the central bank. Both governmental and private sector specialists monitor changes in the money supply because they think that changes in the money supply have an effect on exchange rates, the business cycle, inflation, and security prices.

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