Answer:
c. credit to Sales Revenue for $72,380.
Explanation:
Since AAA Car Repair's total purchases exceed $200,000 for the year, they are eligible for the 3% rebate on purchases above $60,000. Only the fraction of the purchase over $60,000 should get the 3% rebate, the first $60,000 get the 2% rate.
Therefore, the total sales amount recorded by P & G Auto Parts by selling $74,000 of parts to AAA is:
There should be a credit to Sales Revenue for $72,380.
Answer:
More; increasing supply and earning profit; entering the market; reducing the profit to zero; horizontal.
Explanation:
The claim by WebMD that the protein in tuna would lead to 2 Years increase in life expectancy would cause the demand to increase at every price. The demand curve will consequently shift to right.
As a result the firms in short run will supply more and enjoy profits.
Since the firms were facing long run equilibrium and were enjoying zero profit, an increase in price will cause profit to firms.
Since in the short run firms can not enter or exit they will continue producing.
In the long run attracted by the profit earned by existing firms, the new firms will enter the market till all the firms are having zero profits.
In the tuna industry the new firms will start production, so the industry supply will increase causing a rightward shift in the supply curve.
In the long run the shape of the supply curve of the industry will be horizontal.
