Answer:
Option (b) $12,960
Explanation:
Data provided in the question:
Cost = $90,000
Salvage value = $3,600
Useful life = 120,000 miles
Number of miles driven in 2012 = 18,000
Number of miles driven in 2013 = 32,000
Now,
Using the straight line method of depreciation
Rate of annual depreciation = [ Cost - Salvage value ] ÷ Useful life
= [ $90,000 - $3,600 ] ÷ 120,000
= $0.72 per mile
Therefore,
The depreciation expense for 2012
= Rate of annual depreciation × Number of miles driven in 2012
= $0.72 per mile × 18,000
= $12,960
Hence,
Option (b) $12,960
Answer:
when a factory runs low on supplies they charge extra.So they can get there money back up to build more items.Once that they have more than enough they will reduce the price.Because they will go into over flow and may go out of business
Answer:
The answer is: A) strategic alliance
Explanation:
A strategic alliance is an agreement between two or more independent companies to participate in a mutually beneficial project. The companies share resources for this specific project while remaining independent in all their other business activities.
This is usually done to try to enter a new market or to develop a new product.
Answer:
there would be a rightward shift of the demand and supply curve.
there would be a rise in equilibrium quantity and an indeterminate effect on equilibrium price.
Explanation:
if the supply and demand of bottled water rises, there would be a rightward shift of the demand and supply curve.
a rise in the demand leads to a rise in price and quantity.
a rise in supply leads to a rise in quantity and a fall in price
the combined effect would lead to a rise in quantity and an indeterminate effect on price.
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.