Answer:
$52
$ 1.33
- consumer price will increase
- consumer surplus will decrease
- import will decrease
- reduced export
- portends gloom for the general outlook for the economy
Explanation:
Given domestic demand curve, S(p) = 20p⁻⁰°⁵
the domestic supply curve S(p)= 5p⁰°⁵
world price is $7.00
using calculus to determine the changes in consumer surplus
by consumer surplus means in this case supply exceeds demand
we establish the equilibrium point where the supply and demand functions meet or are equal
solving 20p⁻⁰°⁵ = 5p⁰°⁵
20/5 = p⁰°⁵/p⁻⁰°⁵
4 = p⁰°⁵⁺⁰°⁵
4= p = q which is the quantity produced
consumer surplus = maximum price willing to pay - Actual price
= ∫⁴₀ dp dp - p* q
= ∫⁴₀20p⁻⁰°⁵ dp- 7* 4
= 20∫⁴₀p⁻⁰°⁵ dp -28
= 20/0.5 p⁰°⁵- 28
= 40 *4⁰°⁵ - 28 = $52
producer surplus = it is a measure of producer welfare. It is measured as the difference between what producers are willing and able to supply a good for and the price they actually receive
thus producer surplus = p* q - ∫⁴₀ d(s) dp
= 7 * 4 - ∫⁴₀ 5p⁰°⁵ dp
= 28 - 5 ∫⁴₀ p⁰°⁵ dp
= 28 -5 *2/3 p¹°⁵
= 28 -5 *2/3 4¹°⁵
=$ 1.33
welfare from eliminating free trade
- consumer price will increase
- consumer surplus will decrease
- import will decrease
- reduced exports
- portends gloom for the general outlook for the economy
Answer:
a. Debit Insurance Expense. $660, credit Prepaid Insurance, $660.
Explanation:
The adjusting entry is shown below:
Insurance expense Dr $660 ($3,300 ÷ 5 years)
To Prepaid insurance
(Being the insurance expense is recorded)
here we debited the insurance expense as it increased the expense and credited the prepaid insurance as it decreased the assets
Therefore the option a is correct
Answer:
The correct answer is letter "A": lawn fertilizer manufacturer.
Explanation:
Process costing is a type of costing approach used by companies to identify expenses for individual units produced. This method is useful for manufacturers in charge of mass production where all the units are almost the same or equal. Thus, <em>a lawn manufacturer could use the process costing system</em> because the equipment produced in that industry are almost equal and tend to be manufactured in large quantities.
Answer: Higher; Comparative advantage
Explanation:
A country or a firm has a comparative advantage in producing a commodity if the opportunity cost of producing that commodity in terms of other commodities is lower than the other country or firm.
Opportunity cost is the benefit that is foregone for an individual by choosing one alternative over other alternatives available to him.
If the opportunity cost is lower for an individual then this will benefit him whereas if the opportunity cost is higher then this will not benefit the individuals.
Therefore,
United states's Opportunity cost of producing a pair of shoes = 
= 5 apples have to be foregone for producing a pair of shoes
Canada's Opportunity cost of producing a pair of shoes = 
= 2 apples have to be foregone for producing a pair of shoes
Hence, Canada has a comparative advantage in producing pairs of shoes because Canada's opportunity cost of producing a pair of shoes is lower than United states opportunity cost.
