Answer: Pure monopolists do not always realize economic profits.
Explanation:
Even though Pure Monopolies are the only sellers or makers of a good in a market and can therefore set their own prices, this does not mean that they will always make a profit talk more an economic one.
In the short run for instance, a Pure monopoly could see its average cost higher than its average revenue because some factors of production could not be varied. In this scenario, the monopolist would realize economic losses.
<span>The economic resources that are owned by a business are called stockholders' equity.
False</span>
Answer:
Charge for perpetual care service will be $1500
So option (a) will be the correct option
Explanation:
We have given the estimated cost to maintain a gravesites is $120 per year
Interest rate = 8 % = 0.08
We have to find the fee which owner charged for the perpetual care service
The perpetual charge is given by
Charge for perpetual care service will be $1500
So option (a) will be the correct option
Answer:
$20,000 ordinary gain
Explanation:
Data provided in the question:
Cash proceeds from Selling of the equipment = $50,000
Purchasing cost of the equipment = $60,000
Depreciation expense = $30,000
Now,
The book value of the equipment
= Purchasing cost of the equipment - Depreciation expense
= $60,000 - $30,000
= $30,000
Since,
the amount of proceeds from sales is higher than the book value of the equipment
Therefore a gain will be recognized
The amount of Gain = proceeds from Selling - book value
= $50,000 - $30,000
= $20,000
Hence,
$20,000 ordinary gain
