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Gnesinka [82]
4 years ago
5

Suppose that widgets are produced by a monopolistically competitive industry. If each firm in this market has the same cost stru

cture and charges the same price, then Q = S / n, Assume that the demand curve is such that b = 1 / 20.
The cost function for any given producer is given by:
TC = 3,000 + (4 x Q)
Suppose there are two countries Home and Foreign and Home has a market size SH = 2,400 widgets and Foreign has market size SF = 1,350 widgets. Assume that both countries have the same costs of production and demand curve.
a) Find the equilibrium number of firms and the equilibrium price and quantity in the long run for each country in the absence of trade.
Business
1 answer:
natulia [17]4 years ago
3 0

Answer:

The equilibrium number of firms is 20.

Explanation:

Q = SH × b

   = 2,400 × (1/20)

   = 2,400 × 0.05

   = 120

Also given, Q = S / n

                120 = 2,400 / n

                  n = 20

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Bramble Corp. makes and sells umbrellas. The company is in the process of preparing its Selling and Administrative Expense Budge
azamat

Answer:

$93,840

Explanation:

Calculation to determine how much is the total budgeted variable selling and administrative expenses for October

October Total budgeted variable selling and administrative expenses=

(0.6 + 1.2 + 0.3 + 0.35) x 7200 +6000 + 39,000 + 7,200 + 24,000

October Total budgeted variable selling and administrative expenses=2.45x 7200 +6000 + 39,000 + 7,200 + 24,000

October Total budgeted variable selling and administrative expenses=$17,640+6000 + 39,000 + 7,200 + 24,000

October Total budgeted variable selling and administrative expenses=$93,840

Therefore the total budgeted variable selling and administrative expenses for October is $93,840

4 0
3 years ago
At January 1, 2017, Crane Company reported retained earnings of $2,190,000. In 2017, Crane discovered that 2016 depreciation exp
lana [24]

<u>Solution and Explanation:</u>

<u>The retained earning statement for the company Crane for the year 2017 is as follows: </u>

                                                Martinez Company

                                                Retained Earnings Statement

                                 For the Year Ended December 31, 2017

Retained Earnings, January 1                                     $2,190,000

Less: Correction of Depreciation Error                         $382000

Retained Earnings, January 1, as adjusted                           $1,808000

Add: Net Income                                                                   $929000

Less: Dividends                                                                 $226000

Retained Earnings, December 31                                         $2,511000

Retained earnings at the starting year is to be considered and depreciation and dividend amount is to be deducted whereas the net income is to be added.  

3 0
3 years ago
The value of an investment comes from its cash flows.​ Let's say you are intent on receiving​ $45,000 per​ year, starting at the
Licemer1 [7]

Answer:

Interest rate of 11.84% is required to earn desired amount of $45,000 per year from an Investment of $380,000.

Explanation:

Amount of Investment = P = $380,000

Desired Return per month = A = $45,000

Number of Years = n = 10 years

Interest rate = ?

Use following formula to calculate Interest rate:

A = P x Interest rate

$45,000 = $380,000 x r

r = $45,000 / $380,000

r = 0.1184 = 11.84%

6 0
4 years ago
A shift in the sales mix from high-margin items to low-margin items can cause total profits to decrease even though total sales
g100num [7]

Answer: True

Explanation:

Low Margin items refer to those that have a lower profit per unit because their costs may be higher in relation to their selling price.

High margin items are the opposite.

If the company switches from High Margin items to Low margin items, they will face a situation where they are incurring more costs per sale which would drive their profits down even if sales increase.

The optimal mix for a company should have more high margin items than low margin items.

4 0
3 years ago
Del Gato Clinic's cash account shows a $11,589 debit balance and its bank statement shows $10,555 on deposit at the close of bus
Sliva [168]

Answer:

Bank Reconciliation

Bank Statement Balance                                    10,555

Add: June 30 Deposit                                        <u>  2,856</u>

                                                                              13,411

Less: Outstanding Checks                                 <u> (1,829)</u>

Adjusted bank balance                                     $11,582

Bank Reconciliation

Book Balance                                                            11,589

Add: Error in Check 919 (479 - 467)                        <u>         9</u>

                                                                                   11,598

Less: Bank service charge                                 <u>        (    16)</u>

Adjusted book balance                                            11,582

5 0
3 years ago
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