Using the straight line method
Depreciation per year
295,000÷5=59,000
Accumulated depreciation for 3 years
59,000×3=177,000
Book value of the equipment
295,000−177,000
=118,000
Answer:
Accounting equation is as follows:
Assets = Liabilities + Stockholder's equity
(a) Cash $3,940 Notes payable $3940
(b) Cash $4,630 Common stock $4,630
(c) Equipment $1,000
Cash (-$200) Notes payable(ST) $800
(d) Supplies $300
Cash (-$300)
(e) Supplies $700 Accounts payable $700
Over time, the average consumer will be better off from reduced trade barriers by lower prices.
- Comparative advantages allow countries to manufacture the goods at which they are experts.
- A is skilled at making delicious wine, and they can do so for less money than B while still creating a wine of higher quality.
- When trade obstacles are lowered, wine from country A will be sold in country B, customers will have more wine options available to them, and prices will be substantially less different than they are when strong barriers are in place.
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Answer: Wages are flexible if the economy is self-regulating.
Explanation:
Classical economists believe that the economy is self-regulating. This means that if the economy is not at equilibrium, it will return to equilibrium if it is left without interference.
For this to happen, inputs such as wages have to flexible to enable them to adjust to market conditions and thus take the Economy back to equilibrium.
For instance, if there is a recession, wages will reduce so that the prices that the producers can charge will reduce as well which will enable supply to match demand and bring the economy back to equilibrium.
Answer: charge a monopoly price
Explanation:
Patents provide an exclusive right to the firm in the production and sale of a drug. This provides the firm exclusive market power to decide the price and the quantity and therefore the firm is able to charge a monopoly price and also earn monopoly profits.
When an existing patent expires and the generic producers enter the market, the price reduces due to an increase in the supply of the erstwhile patented drug. This will reduce the monopoly profit of incumbent producers. Therefore, they will seek to deter the entry of generic drug makers in order to safeguard their monopoly profits and price.
Therefore, incumbents were willing to give enough to potential entrants so as to make them delay entry to charge a monopoly price.
The effect of the 2013 Supreme Court decision allowing legal action against these companies is increase in the cost of pay-for-delay agreements and also reduce incumbent profits from these agreements.
