Answer:
It implies there are diseconomies of scale.
Explanation:
It implies there are diseconomies of scale in the industry
Because as the quantity of units output increase, the cost also increase. While in economies of scale, the slope for the LRAC will be negative, as each increase in output lowers the cost.
When this occurs, there is a lower change of monopoly in the industry, as the larger firm also faces the larger cost, so the supply tend to be more diverse.
While a, indifined negative slope will generate monopolies as their cost become lower at gerater the output.
Answer:
Explanation:
It should be understood that Kasapreko company limited is a Ghanian company that specialises in the production of herbal beverage products.
And the primary aim or goal of the company is to be able to have branches in every country of the world. But before this could be achieved, the company must be able to meet the demands of its country of production, and be able to attain or collect the necessary documents that will allow it to have branches outside the country it was founded. It must also be able to acquire the necessary licenses to operate in its desired countries.
Presently, the company has branches in countries like Nigeria and South Africa.
Answer:
The bond's issue (selling) price = $1,146,890.2
Explanation:
The selling price of the bond is equivalent to the present value of all the cash flows that are likely to accrue to an investor once the bond is bought. These cash-flows are the periodic coupon payments that are paid semi anually and the par value of the bond that will be paid at the end of the 10 years.
During the 5 years, there are 10 equal periodic coupon payments that will be made. In each year, the total coupon paid will be 
and this payment will be split into two equal payments equal to 
. this stream of cashflows is an ordinary annuity
The periodic annual market rate is equal to 
The PV of the cashflows = PV of the coupon payments + PV of the par value of the bond
=$80,250*PV Annuity Factor for 10 years at 6.5% + 
Answer:
Cr Bonds Payable account 50,000
Cr Premium on Bonds Payable account 2,000
Explanation:
The complete journal record should be:
- Dr Cash account 52,000
- Cr Bonds Payable account 50,000
- Cr Premium on Bonds Payable account 2,000
Since cash is an asset and it increases, it should be debited.
Since bonds payable and premium on bonds payable are liabilities and they increase, they should be credited.
