Answer: A. Market Period.
B. Long Run
C. Short Run
Explanation:
A.Output and the number of firms are fixed
The MARKET PERIOD is a very short period that refers to a situation where all resources are FIXED. This means that Output itself is fixed and therefore cannot adjust to demand.
B.Plant capacity is flexible. Firms can enter and exit an industry.
This is the LONG RUN. A time where all resources are Variable. This means that factors such as Plant Capacity which is FIXED in the Short Run will simply be Variable and hence flexible in the long run. Other Firms are also free to enter or leave the Industry during this time.
C.Plant capacity and the number of firms are fixed. Firms can employ more labor if needed
This refers to the SHORT RUN which is a situation where AT LEAST one resource is FIXED and others are VARIABLE. As long as there is a Fixed Resource with some Variable Resources, it is the Short Run. Plant Capacity and Number of Firms are fixed but Labor is Variable. This makes this scenario a Short Run Scenario.
Answer:
Annual rate of inflation = [(215.9 - 210.2) / 210.2] * 100
Annual rate of inflation = 2.7%
Real income change = Nominal income change - inflation rate
Janice Real income change = 4% – 2.7%
Janice Real income change = 1.3%
This means Janice's real income did increase by 1.3%.
Jeff Real income change = 2% – 2.7%
Jeff Real income change = -0.7%
This means Jeff's real income did decrease by 0.7%.
Answer:
Lester Company
The accumulated depreciation amounts for buildings $35,000 and for equipment $60,000 were obtained as the differences between the costs and the book values of the assets. The cost of a long-term asset is usually reduced to its book value by the total amount in the accumulated depreciation account. The accumulated depreciation account shows the progressive amounts set aside annually as a write-off of the asset, showing its use over the period in accordance with the accrual concept and matching principle. The accrual concept and matching principle require cost to be matched to the revenue it helps to generate.
Explanation:
Transferred Assets:
Cost Book Value Difference Explanation
Cash $40,000 $40,000 $0
Accounts Receivable 75,000 68,000 $7,000 (doubtful accounts)
Inventory 50,000 50,000 $0
Land 35,000 35,000 $0
Buildings 160,000 125,000 $35,000 (depreciation)
Equipment 240,000 180,000 $60,000 (depreciation)
