Answer:
The correct answer is letter "D": yields usable predictions and implications for the real world.
Explanation:
Economic models are representations of real-world complex economic phenomena. Based on certain facts, economists take those premises to establish a theory aiming to explain why those series of events happen, when they happen, and what is likely possible to be done in front of them.
Answer:
The answer is C. can earn profits or incur losses in the short run.
Explanation:
A monopolist maximizes profit or minimizes losses by producing that quantity that corresponds to when marginal revenue = marginal cost. However, if the average total cost is above the market price, then the firm will incur losses, equal to the average total cost minus the market price multiplied by the quantity produced
Answer:
The correct answer is letter "A": It will decrease.
Explanation:
Price floors are price levels the government of a country sets to protect the price of a good will not fall to a level in which producers will not be able to make profits. Since the price level is unlikely to fall,<em> over the years consumers will lose interest in that product and start looking for a substitute at lower prices</em>. <em>The quantity demanded of the price-floor good drops under that scenario.</em>
Answer:
A debit to Depreciation Expense
A credit to Accumulated Depreciation
Depreciation Expense $2000
Accumulated Depreciation $2000
Explanation:
The purpose of depreciation is to achieve the matching principle of accounting. That is, a company is attempting to match the historical cost of a productive asset to the revenues earned from using the asset. It is difficult to precisely match the contribution of the asset to a company's revenues, so the asset cost is designated to the years in which the asset is used.
The accounting entry is:
A debit to Depreciation Expense
A credit to Accumulated Depreciation
Depreciation Expense $2000
Accumulated Depreciation $2000
Answer:
a. $20.00
Explanation:
Given that
Common Stock = $150,000
Additional Paid-in Capital = $850,000
Par Value per share = $3
So,
Number of shares issued = Common Stock ÷ Par Value per share
= $150,000 ÷ $3
= 50,000
Now
Total Common Stock Equity = Common Stock + Additional Paid-in Capital
= $150,000 + $850,000
= $1,000,000
So,
Average Issue Price per share = Total Common Stock Equity ÷ Number of shares issued
= $1,000,000 ÷ 50,000
= $20.00