In this market, it can be concluded that at a price level of $100 per unit, there is <em>C. a shortage of 0.4 million units.</em>
- This market shortage occurs because 0.4 million units of the goods were not supplied. There is excess demand and shortage in supply.
- The market demand increased from the equilibrium quantity of 5 million units to 5.2 million while the market supply reduced from the equilibrium quantity of 5 million units to 4.8 million.
- The shortage of 0.4 million units results from the difference between the quantity demanded (5.2 million) and the quantity supplied (4.8 million) as a result of reduced price.
Thus, the market shortage shows the reduced willingness of suppliers to supply goods at the new price of $100 per unit instead of at the acceptable equilibrium price of $120 per unit.
Read more about market surplus and shortage at brainly.com/question/24385458
The answer is a , make sure you pick that oneb
Answer:
1. Repainted the office building: This should be capitalized.
2. Added a new wing onto the office building: This should be capitalized.
3. Took their fleet of cars in for servicing (changing the oil, etc.).: This should be expensed.
5. Had an engine rebuilt in one of their fleet cars: This should be capitalized.
4. Added newer electronic locks on the doors in the production building: This should be expensed.
Explanation:
1. Repainted the office building: This should be capitalized. This is because repainting is a repair that will restore the physical structure of the office building and significantly improve it. Since it is a capital improvement cost, it should be capitalized and depreciated like other fixed assets.
2. Added a new wing onto the office building: This should be capitalized and depreciated like other fixed assets since it is a capital expenditure that significantly added to the structure of the office building.
3. Took their fleet of cars in for servicing (changing the oil, etc.).: This falls under repair and should be expensed.
4. Added newer electronic locks on the doors in the production building: This should be expensed. Cost of locks and keys are ordinary expenses that do not improve the physical structure of the production building.
5. Had an engine rebuilt in one of their fleet cars: This should be capitalized. It is a tangible improvement to the fleets of cars and this kind of costs fall under capital expenditures.
Answer:
d. It will have a credit balance of $100,000.
Explanation:
In the income statement, the total revenues and the total expenses are recorded.
If the total revenues are more than the total expenditure then the company earns net income
And, If the total revenues are less than the total expenditure then the company have a net loss
This net income or net loss would reflect in the statement of the retained earning account.
So, the balance of income summary equals to
= Sales - expenses
= $540,000 - $440,000
= $100,000
The dividend should be deducted from the retained earning account. Hence, it will not be consider here
When goods are produced at the lowest possible cost an economy is said to have achieved?
Answer: production efficiency
