Answer:
Mandy Capital Debit: 100,000
Brittney Capital Credit: 100,000
Explanation:
The journal entry will be recorded as above. Mandy sold equity worth $100,000, so we will record the entry on transfer of equity by the equity value sold. Now, for this equity value both partners can decide the amount in which one will sell to other, which in this scenario is $85,000.
In order to compute for the effective annual rate, the
working equation would be [( 1 + i/n)^n] – 1. The i
corresponds to the nominal rate while n is the number of compounding periods
per year which in this case is 12. The answer would be 5.116%.
Answer: underallocated because long-run equilibrium occurs where price exceeds marginal cost.
Explanation:
Monopolistic competition occurs when there are many firms that are producing products that are differentiated. It should also be noted that one typical characteristics of a monopolistic competition is a large number of firms coupled with low entry barriers.
It should be noted that in monopolistically competitive markets, resources are underallocated because long-run equilibrium occurs where price exceeds marginal cost..
A pre-sweetened breakfast cereal would most likely be in the DECLINE stage of the product life cycle.
At the decline stage of a product like cycle, the number of product sold usually drop significantly, because of this, manufacturers usually look for a mean of modifying their product so that the consumers will continue buying it. For instance, a cereal manufacturer may decide to add sugar to his product so that it will continue to be bought by the consumers.<span />
