Hey friends
I believe the answer to this question would be A
Hope i helped
~Katie
Answer:
Accounts Receivable $80,000,
Bad debt losses of 1% of credit sales= 1% * $ 80,000= $ 800
Allowance for Doubtful Accounts $5,000 credit
Bad Debts $ 800 Debit
Allowance for Doubtful Accounts $4,200 credit
Two entries will be required
For recording Bad debts Expense
Bad Debts Expense $ 800 Dr
Allowance for Doubtful Accounts $ 800 credit
Adjusting Entry at year end.
Allowance for Doubtful Accounts $ 800 Debit
Account Receivables $ 800 Credit
Whether it is a case of external or internal economies of scale:
A. A number of firms doing contract research for the drug industry are concentrated
Larger changes within the industry lead to external economies of scale, so as the industry expands, the average cost of doing business decreases.
when external economies of scale exist?
External economies of scale take place when an industry as a whole expands and businesses profit from lower long-term average costs. External economies of scale are also known as advantageous external outcomes of industrial development.
An external economy of scale is shared by competitors, internal economies of scale provide larger competitive advantages.
To learn more about external economies refer to:
brainly.com/question/20354469
#SPJ9
Answer:
If the demand curve for a life-saving medicine is perfectly inelastic, then a reduction in supply will cause the equilibrium price to <u>rise and the equilibrium quantity to stay the same</u>.
Explanation:
Perfectly inelastic demand curve indicates the quantity demanded for the life-saving medicine remains the same or does not change in response to a change in price.
Since a part of the law of supply states that the lower the quantity supplied, the higher the price; a reduction in the supply of the life-saving medicine will increase its price.
The combining effect of the two above will lead to an increase in the equilibrium price while the equilibrium quantity will remain the same as it will not respond to the change in price.
The attached graph explains this more clearly. In the graph, the demand curve DD is used to represent the perfectly inelastic demand curve for the life-saving medicine. Therefore, the quantity remains at q no matter the changes, either increase or decrease, in price. Movement from the supply curve S1 to S2 indicates a reduction in supply of the life-saving medicine which causes an increase in the equilibrium price from Po to P1 while the equilibrium quantity stays at q.
This therefore shows that if the demand curve for a life-saving medicine is perfectly inelastic, then a reduction in supply will cause the equilibrium price to <u>rise and the equilibrium quantity to stay the same</u>.