How does the divestment of oligopoly firm affect consumer welfare

ladessa [460]

It would be the cash register

8 0

3 years ago

Suppose the restaurant industry is perfectly competitive. All producers have identical cost curves and the industry is currently

aleksandr82 [10.1K]

Answer:

Explanation:

A. Supply stays the same, demand decreases since restaurants are normal goods. As a result, the equilibrium price and the equilibrium quantity will go down.

B. In the short run, the existing firms reduce their output causing Q* to fall. In the long run, as firms exit, Q* falls even further.

C. An individual firm may produce in the short run, but exit from the industry in the long run. As a result, the firm will decrease its quantity produced up to 0. Therefore, in the long run the output of an individual firm may change drastically comparing with the short run.

7 0

3 years ago

On the first day of the fiscal year, a company issues an $7,500,000, 8%, five-year bond that pays semiannual interest of $300,00

Sav [38]

Answer:

$7,500,000 in 8% bonds, 5 years to maturity, semiannual coupon ($300,000)

sold at premium for $7,740,000

the journal entry to record the issuance should be:

Dr Cash 7,740,000

Cr Bonds payable 7,500,000

Cr Bond premium 240,000

<u>Using the straight line amortization:</u>

amortization per coupon payment = $240,000 / 10 coupons = $24,000

Dr Interest expense 276,000

Dr Bond premium 24,000

Cr Cash 300,000

5 0

3 years ago

If traders in a market have rational expectations, then A. prices of riskier assets are higher than prices of less risky assets

cricket20 [7]

Answer:

B. the price of an asset equals its fundamental value.

Explanation:

If the traders in the market have a rational expectation then the price of the asset is equal to the fundamental values and if a stocks is trading at a price at its fundamental values then the investor will be making a rational expectation.

7 0

3 years ago

Smith has applied overhead of $73,000 and actual overhead of $87,600 for the month of November. It applies overhead based on dir

oee [108]

Answer:

Estimated direct labor hours= 180,000

Explanation:

Giving the following information:

Overhead for the year was estimated to be $900,000.

Smith has applied overhead of $73,000

It applies overhead based on direct labor hours and those equaled 14,600 in November.

We have to reverse engineer the allocation method for manufacturing overhead.

First, we need to calculate the estimated overhead rate:

Allocated MOH= Estimated manufacturing overhead rate* Actual amount of allocation base

73,000= Estimated manufacturing overhead rate*14,600

$5= Estimated manufacturing overhead rate

Estimated manufacturing overhead rate= $5 per direct labor hour

Now, we can determine the estimated direct labor hours:

Estimated manufacturing overhead rate= total estimated overhead costs for the period/ total amount of allocation base

5= 900,000/ total amount of allocation base

5*X= 900,000

total amount of allocation base= 180,000

Estimated direct labor hours= 180,000

3 0

3 years ago

Read 2 more answers