What might explain why the restaurant isn't named in the lawsuit?

The following is a free response question released by the College Board from a previous AP exam to be used as practice for futur

astraxan [27]

<u>Solution and Explanation:</u>

(a). Firm in perfect competition produces at minimum efficient scale, MEC where average cost AC is minimum. The price is determined by the market supply and demand.

(b) Note that q1 is at the minimum of AC while Q* is to the left of q1. Similarly, P1 is equal to MC while P* is higher than MC. This shows that firms in perfect competition produce more and charge less than the firms in monopolistically competitive market.

(c) All firms in monopolistically competitive market as well as perfectly competitive market earn zero economic profit in the long run. This is because there is a free entry and exit

(d) Demand is steeper for firms in monopolistically competitive market so that demand is elastic. Demand is horizontal for any quantity which means it is perfectly elastic for a firm in competitive market.

5 0

3 years ago

Journalize the following five transactions for Nexium & Associates, Inc. Omit explanations.March 1 - Bills are sent to clien

emmasim [6.3K]

Answer: Please find answers in explanation column

Explanation:

Journal entry for Nexium & Associates

1.Journal to record Services provided in February.

Date Account Debit Credit

March 1 Accounts receivable $800

Service revenue $800

2.Journal to record purchase of furniture and supplies on account.

March 9 Office furniture $1,060

Office supplies $160

Accounts payable $1,220

3.Journal To record payment made to suppliers, Corner Office Inc.

March 15 Accounts payable $1,220

Cash $1,220

4.Journal To record the bill of electricity for march which is not yet due to be paid till April.

March 23 Electricity expense $430

Outstanding Liabilities $430

5.Journal To record the salary payment to employees.

March 31 Salaries expense $850

Cash $850

3 0

3 years ago

U(X,Y)equals=20Xplus+80Yminus−Upper X squaredX2minus−2Upper Y squaredY2 where X is his consumption of CDs with a price of $11

ankoles [38]

Answer:

The number of CDs = 111.36

The number of movie videos = 242.72

N/B: I choose not to round up the answers.

Explanation:

The method used is the Lagrangian method. Basically, the optimization problem we are trying to solve is the utility function $u(x,y) = 20x+80y -x^2 -y^2$

subject to the constraint

$11x + 22y = 6565$ .

So the optimization problem(Lagrangian) is

$\Delta = 20x + 80y -x^2 -y^2- \lambda(11x+22y-6565)$ ,

where $\lambda$ is a constant called the Lagrange multiplier.

To find the optimal consumption, we need to maximize the Lagrangian with respect to the variables $x,y,\lambda$ . This we do by differentiating $\Delta$ with respect to each variable and then equate to 0.

$\Delta_x : 11\lambda = 20 - 2x ........................(1) \\\Delta_y: 11\lambda = 40 -y .........................(2) \\\Delta_\lambda = 11x + 22y = 6565............................(3) \\$

Equate (1) and (2), to get $y = 20+2x$ and substitute into (3) to get $x = 111.36$ . Substituting $x = 111.36$ into $20+2x$ to get the corresponding value of $y$ .