Answer: Switching cost
Explanation:The cost incurred by consumers while switching from one product to another or from one brand to another is called switching cost. Generally it is monetary but could also be psychological or effort and time based.
In the given case, the company is charging its customers if they cancel their contract earlier. Such cancellation means they are switching to some other company.
Thus, we can conclude that the correct option is E.
Set them up .....................................
Answer:
correct answer is $142,000 credit
Explanation:
given data
retained earnings = $136,000 credit
revenues = $20,000
expenses = $12,000
purchased equipment = $5,000
paid dividends = $2,000
solution
we get here first net income that is
net income = revenues - expenses ...........1
net income = $20,000 - $12,000
net income = $8,000
now we get here balance in retained earnings that is
balance of retained earning = Retained Earnings + net income - dividends ..........2
balance of retained earning = $136,000 + $8,000 - $2,000
balance of retained earning = $142,000 credit
so correct answer is $142,000 credit
Answer:
1. $3,067
2. B) $129,127.
Explanation:
a. The computation of amount deposit in transit is shown below:
The amount of deposit in Transit = Balance as per Cash Book as on 30th Sept - Cheque outstanding realized - Bank charges - Balance as per Bank Book
= $12,596 + $6740 - $16 - $16,253
= $3,067
Deposit in Transit inflates the general ledger initially till it is credited in the bank book.
b. The computation of balance should Cardinal's Cash account show
Cash Account should show a balance = Bank Statement Balance as on May 31 - Outstanding Cheque on May 31
= $180,974 - $51,847
= $129,127
As we can see that the cash account balance is less because there is an outstanding
Answer:
B. monopoly firms but not for competitive firms.
Explanation:
Marginal revenue can become negative for monopoly firms but not for competitive firms.
A monopolist’s marginal revenue is always less than or equal to the price of the good.
Marginal revenue is the amount of revenue the firm receives for each additional unit of output. It is the difference between total revenue – price times quantity – at the new level of output and total revenue at the previous output (one unit less).
Since the monopolist’s marginal cost curve lies below its demand curve. When a monopoly increases amount sold, it has two effects on total revenue:
– the output effect: More output is sold, so Q is higher.
– the price effect: To sell more, the price must decrease, so P is lower.
For a competitive firm there is no price effect. The competitive firm can sell all it wants at the given price.
So the marginal revenue on a monopolist's additional unit sold is lower than the price, <u>because it gets less revenue for selling additional units.</u>
<u>Marginal revenue can become negative – that is, the total revenue decreases from one output level to the next.
</u>
