Answer:
A) a non-binding price floor
Explanation:
A non-binding price floor is a price floor set below the current equilibrium price, so it really doesn't affect either the supply or demand of the product.
A binding price ceiling will result in a shortage since it decreases quantity supplied and increases quantity demanded. Rent control is a type of binding price ceiling. A minimum wage is a type of binding price floor which results in labor supply surplus since the quantity of labor supplied will increase but the quantity of labor demanded will decrease.
Answer: A- few product lines with many items in each
Explanation: A company with shallow product line depth and broad product line breadth would have few product lines with many items in each.
This means that a shallow product line depth is a few product lines. The company has limited variety of product.
While the broad product line breadth means that the company has many items available.
Answer:
Increase; fall
Explanation:
Due to the slightly above normal rainfall levels which led to a large black morel harvest, <em>the supply of the commodity will increase</em>.
However, since demand for the commodity is expected to remain the same as it was in 2007 despite the increase in supply, <em>the equilibrium price is expected to fall</em> as supply exceeds demand.
Answer:
a. decrease by $58,800 per month
Explanation:
The computation is shown below;
<u>
Particulars Amount </u>
Contribution from product X $94,800 ($28 - $22) × 15,800 units
Less: Fixed cost -$108,000
Net loss avoided -$13,200
Non-avoidable fixed cost $72,000
The Total cost in case the product fall $58,800
Hence, the correct option is a.
Answer and Explanation:
The journal entry to record the given transaction is as follows
Retained earning Dr (0.30 million × $54) $16.2 million
To Common stock (0.30 million × $1) $0.3 million
To Additional paid in capital in excess of par (0.30 million × $53) $15.9 million
(Being the stock dividend is declared)
The computation of the shares after declaring the dividend is
= 30 million × 1%
= 0.30 million
