An enterprise environment vital asset may readily be replaced, which is a statement that is untrue.
Any resource that a company or other economic organization owns, or controls is considered an asset in financial accounting. Anything that can be utilized to generate positive economic value, whether it be physical or immaterial, qualifies. Assets indicate ownership value that may be sold for money (although cash itself is also considered an asset). The financial worth of the assets that a company has is shown on its balance sheet. It protects cash and other assets that belong to a person or a company.
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sroufe manufacturing intends to increase capacity by overcoming a bottleneck operation by adding new equipment. two vendors have presented proposals. the fixed costs are for proposal a and for proposal b. the variable cost is for a and for b. the revenue generated by each unit is .
In economics, business, and cost accounting, the term "break even point" indicates the event at which total cost and total income are equal. The total number of units or dollars of revenue required to cover all costs is calculated using the break even point approach.
The break-even point formula in corporate accounting is calculated by dividing the total fixed costs of production by the revenue per unit less the variable expenses per unit. In this context, fixed costs are those expenses that are constant regardless of the quantity of units sold. In other words, the break-even point is the manufacturing level where a product's total revenues and total expenses are equal.
It is given in the question that,
Fixed Cost for Proposal A = $50,000
Variable Cost = $12
Revenue per unit = $20
We know that,
Break-even-point = Fixed Cost/(Revenue per unit - Variable Cost)
= 50,000/ (20-12)
= $6,250
Therefore, the break-even-point for Proposal A is $6,250.
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Complete question:
Sroufe Manufacturing intends to increase capacity by overcoming a bottleneck operation by adding new equipment. Two vendors have presented proposals. The fixed costs are $50,000 for proposal A and $70,000 for proposal B. The variable cost is $12.00 for A and $10.00 for B. The revenue generated by each unit is $20.00. a) The break-even point in units for the proposal by Vendor A = units (enter your response as a whole number).
What is true of the traditional project management approach concerning project scope and technology? (You may select more than one answer. Single click the box with the question mark to produce a check mark for a correct answer and double click the box with the question mark to empty the box for a wrong answer. Any boxes left with a question mark will be automatically graded as incorrect.)
Traditional project management implies that good planning and execution avoids the need for corrective action, regardless of scope.unanswered
Traditional project management requires that project scope and technology are predictable.unanswered
Traditional project management relies heavily on up-front planning.unanswered
Traditional project management is just as effective when project scope and technology are not well known.
Traditional project management relies heavily on up-front planning and traditional project management requires that project scope and technology are predictable is true of the traditional project management approach concerning project scope and technology.
Task management is the method of main the paintings of a group to achieve all assignment dreams within the given constraints. This data is normally defined in venture documentation, created at the start of the development technique. The primary constraints are scope, time, and budget.
Challenge control can be described as the area of making use of particular methods and concepts to initiate, plan, execute and control the manner that new projects or adjustments are applied within an organization.
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the effect on the accounting equation of declaring a cash dividend includes . (check all that apply.)multiple select question.an increase in assetsan increase in stockholders' equityan increase in liabilitiesa decrease in liabilitiesa decrease in assetsa decrease in stockholders' equity
The effect on the accounting equation of declaring a cash dividend includes an increase in liabilities and a decrease in stockholder's equity.
A corporation that pays its investors a cash dividend does so by making regular cash distributions to them (as opposed to in stock or any other form) Cash dividends are frequently given out on a regular basis, such as monthly or quarterly, but they can also be given out only once, such as following a settlement.
Cash dividends are viewed as assets since they raise owners' net worth by the dividend's amount. A company's stock will cost more when there is more demand for it. A company's capacity and willingness to consistently pay dividends over time serves as a strong indicator of its financial soundness and communicates a clear, powerful statement about its future prospects and performance.
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if supply and demand are not moving, but consumers are responding to increasing prices, what situation is being eliminated in the market for that good? (3 points)
The situation is being eliminated in the market for that good:
Economists call this the Law of Demand. If the price goes up, the quantity demanded goes down (but demand itself stays the same).
A surplus exists when the price is above equilibrium, which encourages sellers to lower their prices to eliminate the surplus.
A price below equilibrium creates a shortage.
A market is any area where makers, vendors, or retailers promote, and purchasers purchase. Examples include shops, excessive streets, or websites. The time period may also talk to the whole group of shoppers for a very good or carrier. companies that function in markets are commonly in competition with other agencies.
A market is an area where buyers and sellers can meet to facilitate the change or transaction of products and offerings. Markets may be bodily like a retail outlet, or virtual like an e-retailer.
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on its opening day, a car dealership had an inventory of 29 cars. during the first 6 months, 18 additional cars were purchased by the dealership each week, and the sales team sold an average of 15 cars per week. during the first six months, which of the following equations best models the car inventory, c, at the dealership t weeks after opening day?
Answer: c = 3t + 29.
Assume the following information:U.S. investors have $1,000,000 to invest1-year deposit rate offered by U.S. banks = 12%1-year deposit rate offered on Swiss francs = 10%1-year forward rate of Swiss francs = $.62Spot rate of Swiss franc = $.60Given this information:Group of answer choicesinterest rate parity exists and covered interest arbit¬rage by U.S. investors results in a yield above what is possible domestically.interest rate parity doesn’t exist and covered interest arbitrage by U.S. investors results in a yield above what is possible domestically.interest rate parity exists and covered interest arbit¬rage by U.S. investors results in the same yield as investing domestically.interest rate parity doesn’t exist and covered interest arbitrage by U.S. investors results in a yield below what is possible domestically.
There is no interest rate parity, and covering interest arbitrage by American investors produces a domestic return of the less than 13.7%.
How much does interest rate?An amount that a borrower must pay to a lender as interest during the course of a loan, stated as a percentage of a loan amount. It's possible for a rate change to be positive or negative. It is more a reflection of the overall state of the American economy.
What has ever been the highest interest rate?According to Freddie Mac data, in 1981, whenever the yearly rate was 16.63%, interest rates hit their maximum height in contemporary history. From there, fixed rates decreased, but they still ended the decade at about 10%. It was expensive to borrow money during the 1980s.
Briefing:$1,000,000/$.60 = SF1,666,667 × (1.1)
= SF1,833,333 × $.62 = $1,136,667Yield
= ($1,136,667 − $1,000,000)/$1,000,000
= 13.7%yield.
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a decrease in the demand for money would result from a(n): group of answer choices increase in income. increase in real gdp. decrease in the price level. increase in nominal gdp.
The interest rate before accounting for inflation is known as the nominal interest rate. This is how the relationship between money demand and supply is used to calculate the nominal interest rates in an economy.
Relevant diagrams are also included with these explanations to further help highlight these economic interactions.On the other hand, the demand for money is a little bit more difficult. It helps to consider why households and institutions store money, or cash, in order to comprehend it.The money is primarily used by homes, corporations, and other entities to pay for products and services. Therefore, the more money that the participants in the economy desire to hold to spend on this output, the greater the nominal GDP, which is the dollar worth of aggregate output.
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what two policies do marketing managers typically choose between when deciding how to price their goods? (check all that apply.)
The two pricing policies considered when setting a price are one-price policy and flexible-price policy.
What role do pricing policies play?Pricing rules help businesses maintain profitability by allowing them to sell various products differently. Your company may value having a well-defined pricing policy so that it may make price adjustments rapidly and capitalise on the strengths of its products in one or more areas. Pricing has five basic goals: I achieving a target return on investment (ii) price stability (iii) gaining market share (iv) preventing competition and (v) increasing profits! Prior to selecting the price of the product, pricing targets should be clearly stated. A pricing structure can communicate the value of a product to customers. If your pricing structure is competitive, you are signaling to customers that purchasing your product is a good value.
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in today's legal environment, managers who are convicted for the misuse of information systems are unlikely to be given a prison sentence. group of answer choices true false
Managers guilty of misusing information technology are unlikely to face prison time in today's legal environment. It is untrue. Thus, the correct choice is false.
What is a legal environment?The legal environment of business refers to the acts of the government in regard to the trade and commerce of the country. It also includes contemporary economic control trends, taxation policies, firm history, and market competitive regulation.
Legal difficulties affect businesses in a number of ways. Corporate and corporate regulations determine whether a product is legal to sell in the market. Furthermore, a company must adhere to national standards and laws when it comes to product marketing, selling, inventory management, and so on.
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a british pound cost $2.00 in u.s. dollars in 2008, but $1.27 in u.s. dollars in 2017. a) was the pound weaker or stronger against the dollar? b) did the dollar appreciate or depreciate versus the pound in 2017 (compared to its original value in 2008)? c) how many british pounds does 1 usd buy in 2017? show your calculations.
The pound was stronger against the dollar.
The Dollar appreciated in value versus the pound in the year 2017.
The number of British pounds it took to buy a USD $ 1 in 2017 was £ 0. 79
What is meant by the exchange rate ?The price of one currency in relation to another currency is known as the exchange rate. There are two types of exchange rates: floating and fixed. The central banks of a nation set fixed exchange rates, whereas market forces such as supply and demand determine floating exchange rates.
Because it took more than a single U.S. dollar to buy a single British Pound, it meant that the British pound was stronger than the U.S. dollar.
However, between 2008 and 2017, the British pound lost value against the U.S. Dollar which instead appreciated against the British pound. This is because it cost less dollars to buy pounds.
The number of British pounds needed to buy dollars in 2017 were :
= 1 / 1.27
= £ 0. 79
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a stock has an expected return of 8.0 percent, its beta is .60, and the risk-free rate is 3 percent. what must the expected return on the market be? (do not round intermediate calculations. enter your answer as a percent rounded to 2 decimal places.)
The expected return on the market is 6%.
Define Expected return.The phrase "expected return" refers to a straightforward probability calculation that is used to ascertain both the potential return and the likelihood that a particular investment will result in a profit. Expected return on investment calculations are done to offer an investor an idea of potential profit vs. risk. The term "expected return" refers to the value of a financial investment's anticipated return. It measures the return, which is the center of the random variable's distribution.
Risk free rate= 3%
Beta= .60
Return on market= 8%
According to CAPM (Capital Asset Pricing Model):
Expected Return = Risk free rate + Beta [Return on market - Risk free rate]
= 3 + .60 x (8 - 3)
= 6
Expected return on stock = 6%
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a data analyst is evaluating data to determine whether it is good or bad. which qualities characterize good data? select all that apply.
For a data analyst to succeed, problem solving and analytical thinking are two essential abilities.
Which of these abilities is necessary for a data analyst to have?Although it is advisable for data analysts to have a foundational knowledge of statistics and mathematics, many of their responsibilities can still be carried out without it. However, knowledge in statistics, linear algebra, and calculus is often required for data analysts.
What function does data analysis serve primarily?In order to assist in issue solving, a data analyst gathers, cleans, and analyzes data sets. How to get started on the path to becoming one is given below. A data analyst gathers, purifies, and examines data sets to find a solution to a problem or offer an answer to a question.
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which document do property managers and the owners they represent sign to formalize the relationship?
A Commercial Rental Agreement is the document that property managers and the owners represent sign to formalize the relationship.
A Commercial Rental Agreement could be a recognized document to rent business property between a landowner and a tenant. This agreement permits each parties to formalize the Rental and their relationship if the tenant plans to execute a business on the landlord's premises, through a lawfully documented agreement.
Property managers are, 1st and foremost, answerable for overseeing the continued condition of the owner's property(s) and guaranteeing tenant satisfaction. different duties—such as seeking tenants and managing evictions—depend on the contract with the owner.
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Hanover Tech is currently an all-equity firm that has 320,000 shares of stock outstanding with a market price of $19 a share. The current cost of equity is 15.4 percent and the tax rate is 36 percent. The firm is considering permanently adding $1.2 million of debt with a coupon rate of 8 percent to its capital structure. The debt will be sold at par value. What is the levered value of the equity?
a. $5.209 million
b. $5.312 million
c. $5.436 million
d. $6.512 million
e. $6.708 million
The levered value of the equity is option D. $6.512 million.
Leveraged equity is the inventory of a agency that has considerable debt, which is likewise called leverage. due to the fact the organisation operates basically with the aid of the use of debt, leveraged equity includes more risk than traditional fairness. depending upon the amount of leverage a company has, it is able to be as volatile as debt.
Leverage is an funding method of using borrowed cash—specifically, using various economic instruments or borrowed capital—to growth the capacity return of an investment. Leverage can also talk over with the amount of debt a company makes use of to finance assets.
Calculation:-
The value of levered equity
Value = Equity + Debt
= (320000 × 19) + (36 % × 1200000)
= $6512000
or $6.512 million
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Fill in the blank: Project managers should identify project stakeholders, communication methods, communication goals, and communication _____ before creating a communication plan.
costs
frequency
risks
consequences
Project managers should identify project stakeholders, communication methods, communication goals, and communication costs before creating a communication plan.
A challenge control communique plan identifies how essential facts can be communicated to stakeholders for the duration of the challenge. It additionally determines who can be receiving the communique, how the ones human beings will acquire it, whilst they may acquire it, and the way frequently they must anticipate acquiring those facts.
The communique requirement evaluation is a device that determines the facts that the stakeholder needs. It is received via interviews, workshop or even reading the classes found out from the preceding projects.
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Incentive pay sometimes presents executives with significant ethical issues. Incentives linked to stock performance can lead to which of the following ethical issues? (Select all that apply.)
Scandal that damages the company's reputation
Executives dishonestly raising the price of stock and thereby obtaining a bonus and stock option
An incentive linked to stock performance can lead to executives dishonestly raising the price of stock and thereby obtaining a bonus and stock option, scandal that damages the company's reputation
Performance shares are allotments of company stock provided to managers and executives as a type of equity compensation, but only if specific company-wide performance requirements are reached, including earnings per share (EPS) targets.
In contrast to traditional stock-option plans, where employees receive stock options as part of their regular compensation, in the case of performance shares, the manager receives company shares or stock options as payment for achieving goals.
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Which of the following statements is true of customer service?
A. The retail offerings of a company are not influenced by customer service.
B. It is relatively easy for a company to duplicate the services offered by a competitor.
C. It does not provide major strategic advantages for a company.
D. It increases the value customers receive from the merchandise they buy.
E. Customer service perceptions are developed mostly by interacting with top management
The true statement of customer service is:
D. It increases the value customers receive from the merchandise they buy.
What Is Customer Service?
The direct one-on-one connection between a customer making a purchase and a representative of the business selling it is known as customer service. The majority of retailers believe that this one-on-one contact is essential to ensuring customer satisfaction and promoting repeat business.
Even now, when a large portion of customer service is handled by automated self-service systems, the ability to speak with a live person is still regarded as essential by the majority of businesses. It's an important component of servant leadership.
experience with customer service
Most companies have workers who do behind-the-scenes labor and never deal directly with clients. Customer service representatives are the people who speak to customers most frequently. Customers' interactions with that person affect how they view the company.
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are units within an organization that receive services from other units within the organization
Are units within an organization that receive services from other units within the organization: Internal customers
A business enterprise's major intention or cause is to apprehend and control the enterprise properly. the fundamental purpose is to convey together all the employees and additionally apprehend the direction of the agency.
There is a diffusion of criminal forms of groups, along with businesses, governments, non-governmental corporations, political corporations, international businesses, militia, charities, not-for-income agencies, partnerships, cooperatives, educational establishments, and many others.
An organizational position is defined by using its characteristic inside a larger group. that is genuine whether or not they may be officially part of a crew or now not. The team is described by means of its characteristic inside the larger business enterprise.
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A company issues $100,000 of 5%, 10-year bonds dated January 1 that payinterest semiannually on June 30 and December 31 each year. If bonds aresold at par value, the issuer records the first semi-annual interest paymentwith a debit to which of the following accounts and in what amount?
Bonds are sold at par value, the issuer records the first semi-annual interest payment are debit to interest expense for $3,000 and credit to cash for $3,000.
Corporate bonds ordinarily pay a coupon semi-yearly, and that intends that, assuming the financing cost on the security is 4%, each $1000 security will pay the bondholder an installment of $20 at regular intervals (a sum of $40 each year). To work out the semi-yearly bond installment, take 2% of the standard worth of $1,000, or $20, and partition it by two. The bond, hence, pays $10 semiannually. Partition $10 by $900, and you get a semi-yearly security yield of 1.1%. Security costs fall as loan fees rise since financial backers become disillusioned with the lower interest paid by more established bonds. Taking everything into account, increasing rates disintegrate semiannual security costs short of what they do yearly securities as a result of the intensifying impact.
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if sourcing internally, firms must estimate the costs of prevention, the costs of , the cost of , and the cost of .
Internally sourced goods and services require companies to account for the costs of defect avoidance, quality appraisal, internal failure, and external failure.
What is Cost of quality ?Cost of quality is a metric used to calculate how much it costs companies to produce goods that meet quality standards as well as how much it costs to produce goods that don't.
The goal of the cost of quality calculation is to comprehend how quality impacts revenue. It is important to include both the maintenance and audit costs associated with high quality and the scrap and rework costs associated with bad quality. Because of the expense of quality, manufacturers have the opportunity to assess their quality procedures and subsequently improve them.
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Suppose that the one-year forward price of euros in terms of dollars is equal to $1.113 per euro. Further, assume that the spot exchange rate is $1.05 per euro, and the interest rate on dollar deposits is 10 percent and on euro it is 4 percent. Under these assumptions
A) interest parity does not hold.
B) interest parity does hold.
C) it is hard to tell whether interest parity does or does not hold.
D) Not enough information is given to answer the question.
E) interest parity fluctuates.
According to the scenario, under these assumptions interest parity does hold. Thus, option 'B' is the correct option.
What is Interest rate parity?An equilibrium state where investors may benefit from the interest rates paid on bank deposits in two distinct countries is known as interest rate parity, which is a no-arbitrage condition. The prospect of covered interest arbitrage opportunities to produce risk-free returns arises because this criterion is not always true.
An equation called interest rate parity (IRP) is used to control the link between interest rates and currency exchange. Investors utilize it, and it is essential for tying together the spot exchange rate, the foreign exchange rate, and the interest rate on the foreign exchange markets.
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in campaign manager 360, you've just set up your client, a coffee store chain, with separate child advertisers. what's the next step you should take to prepare their account?
Upload the latte product's particular creatives to their account. Choose the best locations for the introduction of their latte coffiee store . For the creatives relating to the latte product, select the desired ad sizes.
To determine whether their advertising are mobile-optimized, they should check the campaign parameters in Campaign Manager 360. They should set up the account settings in Campaign Manager 360 to take into consideration tablets, apps, and other mobile devices .When organizing their campaign in Campaign Manager 360, they should employ mobile-friendly sizes and formats. They should modify the parameters in Campaign Manager 360 and their current desktop display campaign.
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Last month, arderi air conditioning had a total fixed overhead cost of $7,622.25. it is known that one salesperson sold 51 units, one salesperson sold 43 units, and one salesperson sold 54 units. which arrangement of sales would cause arderi air conditioning to break even? a. mary sells 54 units; jay sells 51 units; abby sells 43 units b. mary sells 54 units; jay sells 43 units; abby sells 51 units c. mary sells 43 units; jay sells 51 units; abby sells 54 units d. mary sells 43 units; jay sells 54 units; abby sells 51 units
In order for Arderi Air Conditioning to break even on sales, Mary would need to sell 54 units, Jay would need to sell 51 units, and Abby would need to sell 43 units.
Define breakeven point.When revenue matches cost, the situation is said to be "break even." In other words, the break-even point is the point at which there is no profit.
They spend $61.25 to make each unit of this model, but it sells for $142.50.
Total merchandise sold is
51 + 43 + 54 =148
The total sales of 148 items are
Total sales = 148 X142.50
= 21090
The 148 components' combined variable cost is
= 148 X 61.25
=9065
Given that Arderi Air Conditioning had total fixed overhead expenses of $7,622.25 last month and Mary, Jay, and Abby's commissions of $36.25, $28.50, and $25.75, respectively.
The total commission is if Mary sells 43 units, Jay sells 51 units, and Abby sells 54 units.
Total commission= 43 X 36.25 + 51 X 28.50 + 54 X 25.75
= 4402.75
The price of all 148 items is
Total cost= Fixed cost + variable cost + Total commission
Total cost = 7622.25 + 9065 + 4402.75
Total Cost= 21090
The total cost and entire revenue are the same. This indicates that Mary sells 43 units for the break eve condition, Jay sells 51 units, and Abby sells 54 units.
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______ represents the degree to which employees are accepted and treated fairly by their organization.
Inclusion represents degree to which the employees are accepted and treated fairly by their organization.
What is inclusion?All pupils should have equitable access to education and learning opportunities, which is referred to as inclusion in education. It originated in special education with an individualized education program or 504 plan and is based on the idea that it is more effective for students with special needs to have the said mixed experience in order for them to be more successful in social interactions leading to further success in life. The inclusion model's guiding principle does not prioritize, but still allows for, the use of special classrooms and special schools for the instruction of kids with disabilities.
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martin corp estimates the allowance for uncollectible accounts at 3% of the ending balance of accoungts receivable
The percentage-of-receivables method is centered on the balance sheet and how the provision for bad debts relates to other accounts.
What is the mission of Lockheed Martin Corporation?Lockheed Martin is a global security and aerospace company with its headquarters in Bethesda, Maryland. It employs about 114,000 people worldwide and focuses primarily on the research, design, development, manufacture, integration, and maintenance of advanced technology systems, products, and services.
How are uncollectible accounts recorded?The journal entry to write off an account when a certain customer's balance is determined to be uncollectible is: A reduction in the amount owed (to remove the amount that will not be collected) A reduction in the reserve for speculative accounts (to reduce the Allowance balance that was previously established).
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RSTP serves as an improved protocol in comparison to the older STP. Which of the following answers lists a feature of RSTP that does not exist in STP?
The criteria used by a nonroot switch to choose its own root port
The criteria used by switches to determine the designated port on a segment
The criteria used by switches to determine a port to act in the backup port role
The criteria used by switches to elect a root switch
RSTP serves as an improved protocol in comparison to the older STP, and the feature of RSTP that does not exist in STP is that the criteria used by switches to determine a port to act in the backup port role.
Network redundancy and layer 2 loop and broadcast storm prevention are the main uses of the spanning tree protocol (STP). It was created at a time when a recovery time from an outage of more than a minute was considered acceptable. Businesses moved away from these prolonged recovery times and aimed for quicker alternatives as technology advanced and crucial applications became more dependent on solid connections.
Rapid spanning tree protocol (RSTP), an upgrade over STP, developed from the original spanning tree protocol. In addition to shorter convergence times, it has new port states and port responsibilities. Both RSTP and STP are essential for a healthy network, however an administrator should choose RSTP over STP. For enterprises that need quicker recovery times, RSTP is the solution.
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boeing collaborated in a strategic alliance with fuji, mitsubishi, and kawasaki in the development and production of the boeing 777 to minimize boeing's financial exposure. what benefit of strategic alliances was boeing seeking?
The pursuit of shared risk was a benefit of strategic alliances.
What advantages do strategic alliances offer?
An organization can reach a larger audience without spending more time or money through strategic alliances.A strategic alliance offers a chance to expand a franchise company's clientele and reach new potential customers. A franchise company is always looking for innovative ways to do both.
What are the advantages and disadvantages of businesses forming a strategic alliance?
Developing a strategic alliance has advantages from a political, economic, strategic, and organizational perspective.On the other hand, some of the drawbacks include having to share profits and possibly revealing trade secrets.Additionally, you may create a potential rival and forfeit other opportunities.
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your manager has left, and their successor is not as skilled a leader. which characteristics of tasks at your organization would substitute for the missing leadership? check all that apply.
Characteristics that detract from the authority of the leader while enhancing group members' performance are called substitutes. Often, a team that functions well together serves as a stand-in for leadership.
The main distinction is that a manager will prioritise Characteristics, planning, and coordinating resources to handle tasks and produce outcomes. substitutes will be inspired, motivated, and influenced by a leader to attain their goals and objectives while contributing to the greater good. Leadership behaviour replacements can be used to make position requirements clear, inspire team members, or appease employees (making it unnecessary for the leader to attempt to do so).
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Two kinds of short-term effects of currency movements are transactions risk and _____ risk.
Transaction risk and transformative risk are the two forms of short-term consequences on currency movements.
What is a transaction risk?Foreign exchange rate changes' negative impact on a closed transaction before settlement is referred to as transaction risk. When a trade or contract is entered into and subsequently settled, there is a specific exchange rate or currency risk that is involved. Typically, businesses that participate in overseas trade must pay expenses in the local currency or, eventually, return profits to their home nation. It frequently takes time for them to agree on the conditions of the foreign currency transaction before they can really execute it to close the deal when they have to engage in these activities. The potential for a shift in the price of one currency in comparison to another results in this lag, which increases short-term exposure to currency risk.
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even if resource prices and technology are the same for all firms, which are the first to leave the industry when demand declines?
Companies charge roughly the same prices since they have little incentive to do so other than in accordance with market demand.
Which kind of market results in the most effective use of the resources available to society?The resources of society are used more effectively when there is perfect competition. This is due to the fact that in a market with perfect competition, firms create a quantity at which marginal cost and price are identical, leading to allocative efficiency.
Which scenario is most likely to result in businesses leaving a sector?Which situation is MOST likely to prompt businesses to leave a highly competitive market? Consumer spending declines. It is believed that an industry with perfect competition is efficient when: Over time, the average total cost of production of the industry's output is reduced.
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