Solution :
c. MC=MR is the profit maximizing equilibrium point. The price rise beyond that is likely to raise the total revenue. But the total cost might increase equally or more then that to nullify or decrease the profit.
d. (i). The demand increase implies that the AR (demand) curve shifts rightwards. This will increase the equilibrium price.
(ii). Change in demand does not affect the total cost.
a. Monopoly might continue to produce in short earn even if its AR < AC. It continues to do so until shut down point. It refers that production continued until average revenue (AR) is greater than equal to the average variable cost (AVC). The monopoly is a market with a single seller.
This market's average revenue (AR) demand curve is above its marginal curve . The curves are downward sloping, illustrating price demand inverse relationship.
Equilibrium quantity : when the marginal revenue = marginal cost
Equilibrium price : equilibrium quantity corresponding price at AR (demand ) curve.
Answer: Debit to Product Warranty Payable
Explanation: Product Warranty Payable is a liability account that has a credit balance. To increase a liability a credit is recorded while to reduce a liability a debit is recorded to the liability.
The seller maintains the warranty as a liability and initially records a debit to its product warranty expense and a credit to its product warranty Payable.
When a repair is done on a product under warranty, the seller records a debit to the product warranty Payable to reduce it’s liability.
Also, a debit to either supplies or cash will increase the expense and assets accounts respectively which will amount to incorrect journal entries.
Answer:
B. discharged
Explanation:
Based on the information provided within the question it can be said that Bottling's contractual obligation to Chug is breached. This term refers to when a party in a contract does not meet the obligations that they agreed upon for whatever reason. Which, since Bottling decided to not perform their part of the contract due to prices becoming to high then they are breaching the contract, regardless whether or not it is due to external factors.
Answer:
$42.5 billion
Explanation:
the expected value formula = ∑ (valueₙ x probabilityₙ)
expected value = (low value x probability of low value) + (most likely value x probability of most likely value) + (high value x probability of high value)
= ($5 billion x 20%) + ($45 billion x 70%) + ($100 billion x 10%) = $1 billion + $31.5 billion + $10 billion = $42.5 billion
$45,000 per year is the economic cost of the time he contributes to the new business.
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Explanation:</u></h3>
The difference between the accounting cost and the implicit cost refers to the economic cost. Implicit cost refers to the opportunity cost that the person incurs when he makes a choice. For example consider Geetha is spending something for watching a movie. The cost that she spends for the movie and the cost that can be forgone by her when she spends that for some other things will be included in the economic cost.
In the example given Jim was earning d $70,000 per year and now he is paying himself $25,000 per year for building a new business. Thus the economic cost will be $70,000 -$25,000 = $45,000 per year. Here the accounting cost is $70,000 and the implicit cost is $25,000.
