Answer:
The answer is: B) The reduction in economic surplus resulting from a market not being in competitive equilibrium.
Explanation:
Deadweight loss is an economic cost to society as a whole when market inefficiencies occur preventing it from reaching its equilibrium point. Market inefficiencies are caused by incorrect allocation of resources.
For example if a price ceiling is established, suppliers will tend to lower the quantity supplied while the quantity demanded either increases or stays the same. That economic deficiency resulting from an unsatisfied demand is what we call deadweight loss.
Other causes for deadweight loss are price floors (reduction of the quantity demanded) and taxation (shifts on the demand or supply curves).
Answer:
The budgeted materials needed in units for April = 67000 litres
Explanation:
The budgeted production for April = 68000 units
The budgeted production for may = 64000 units
The cost of raw material per unit = $1.70 per unit
It is given that at the end of each month the inventory should be = 25%
The April 1 inventory = 17000 units
Now calculate the material required for April production:![= [ Materials needed + ending inventory requirements - beginning inventory available ]](https://tex.z-dn.net/?f=%3D%20%5B%20Materials%20needed%20%2B%20ending%20inventory%20requirements%20-%20beginning%20inventory%20available%20%5D)
![= [ 68000 + (64000 × 25%) – 17000 ] = 67000 Litres](https://tex.z-dn.net/?f=%3D%20%5B%2068000%20%2B%20%2864000%20%C3%97%2025%25%29%20%E2%80%93%2017000%20%5D%20%3D%2067000%20Litres)
Therefore, the budgeted materials needed in units for April = 67000 litres
The event should be presented in the financial statements as follows:
1. The assets side of the balance sheet will be reduced by 75%, with its accompanying accumulated depreciation.
2. The bonded liability on the balance sheet is eliminated by the relevant amount.
3. The journal entry should debit the Bonded Liability and accumulated depreciation, while the assets worth 75% are credited.
4. If the bonded indebtedness is more than 75% of the assets, the company records a profit on disposal on the income statement. Otherwise, it records a loss. If they are equal, there is no profit or loss.
Thus, the difference between the debit and credit entries constitutes either profit or loss on disposal.
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Answer: A. debit of $3,745 to Premium on Bonds Payable.
Explanation:
The carrying value of the bonds at redemption date is $103,745.
The bonds retired however, had a face value of $100,000.
The company therefore paid a premium on these bonds which is:
= 103,745 - 100,000
= $3,745
This amount will be debited to the Premium on Bonds Payable account.
Because the general economy takes a downturn, the company is likely to offer rebates and incentives for customers who purchase washing machines.
<h3>What are the
rebates and
incentives?</h3>
In marketing, these are techniques of marketing promotion that are used to entice, induce prospective customers.
Therefore, as the firm has expanded its capacity where the the general economy takes a downturn, it is likely to offer rebates and incentives for customers who purchase washing machines.
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