Answer: b. Marginal revenue is less than average revenue
Explanation:
Marginal revenue is the extra revenue received by selling one more unit of a good while Average revenue is the revenue generated on average by all units sold thus far.
If the monopolist has to reduce prices to sell more goods then it would mean that for every unit sold, the price would have reduced compared to the price of the last unit which translates to less revenue coming in per unit compared to the last unit.
On the other hand, on average, the higher prices of the earlier goods sold would keep the average revenue higher than the additional revenue (marginal revenue).
Answer:
Based on the EMV value, the best choice is to use Two suppliers
Explanation:
Is necessary to consider different amount of suppliers and evaluate the cost. We will choose the number of suppliers which offers a lower cost.
- EMV1 = cost of shutdown*super event risk + cost of shutdown*unique event risk + cost of managing supplier = 480000*.02 + 480000*0.05+16000 = 9600 + 24000 + 16000 = $ 49600
- EMV2 = cost of shutdown*super event risk + cost of shutdown*unique event risk of each supplier*unique event risk of each supplier + cost of managing 2 suppliers = 480000*.02 + 480000*0.05*.05+16000*2 = 9600 + 1200 + 16000*2 = $ 42800
- EMV3 = cost of shutdown*super event risk + cost of managing 3 suppliers = 480000*.02 + 480000*0.05*.05+16000*2 = 9600 + 16000*3 = $ 57600
Based on the EMV value, the best choice is to use Two suppliers
Answer:
the answer youre looking for is C. digital
Answer:
The journal entry to record the issuance of bond is shown as:
Dr Bank $783,845
Cr Bonds payable $700000
Cr Bonds premium $83845
Being issuance of bonds for cash
Subsequently,coupon interest is calculated is on the par value of $700000 at 11% while effective interest of 8% is calculated on $783,845
Explanation:
Upon issuance of the bonds,the receipt of cash of $783,845 is debited to bank account as an increase in asset.
The obligation to redeem the bond on 1 January 2025 is credited to bonds payable at par value of $700000(an increase in liability)
However, cash received is more by $83,845 which is credited to bonds premium account.