Answer:
The second year’s depreciation for this equipment using the straight line method is 8,500
Explanation:
Depreciation: Depreciation is a decreasing value of the assets due to the tear & wear, obsolescence, usage,etc.
The formula to compute the depreciation under straight lie method is shown below:
=
=
= $8,500
The depreciation amount under straight line method should remain same over the estimated useful life
So, the second year’s depreciation for this equipment is $8,500
Answer:
500
Explanation:
please find attached the table referred to in this question and a second table where marginal cost is included
A perfect competition is characterised by many buyers and sellers of homogeneous goods and services. Market prices are set by the forces of demand and supply.
in a perfect competition, price = marginal cost = marginal revenue
Marginal cost = total cost 2 - total cost 1
e.g. marginal cost at 2 units of output = $7 - $2 = $5
Hank and Helen would supply at the point where marginal cost is equal to $5.
looking at the second attached table, there are two points where marginal cost is equal to $5. at output 1 and output 5.
at output one, Hank and Helen would be earning a loss because total cost is greater than total revenue. so they would not supply at this point.
at output five, Hank and Helen would earn a profit and thus would supply at 5 units of output.
Since all firms face and identical cost structure, the industry supply would be 100 x 5 = 500 pounds
