Answer:
creates a shortage
Explanation:
Price ceiling is when the government or an agency of the government sets the maximum price for a product. It is binding when it is set below equilibrium price.
Because price is set below equilibrium price, demand would outstrip supply and this would lead to a shortage
Effects of a price ceiling
1. It leads to shortages
2. it leads to the development of black markets
3. it prevents producers from raising price beyond a certain price
4. It lowers the price consumers pay for a product. This increases consumer surplus
Answer: e. $43,455
Explanation:
Annual payments are constant so this is an annuity. To calculate the present value of an annuity, multiply the annity by the present value of an annuity factor corresponding with its discount rate and number of periods.
Present value of loan = 9,400 * present value of an annuity factor, 6 years, 8%
= 9,400 * 4.6229
= $43,455.26
= $43,455
Answer:
is more profitable since a firm can charge the new segments higher prices without changing the product.
Explanation:
When a single price has multiple segments and when product, it is an example of price discrimination
Price discrimination is when the same product is sold at different prices to customers in different markets
types of price discrimination
1. first degree price discrimination : here sellers charge each consumer at their willingness to pay in order to eliminate consumer surplus.
2. second degree price discrimination : here firms offer different prices depending on the quantity purchased. e.g. giving discounts for bulk purchases.
3, third degree price discrimination : firms charge different prices to different groups of customers. e.g. having a certain price for senior citizens, students
Price discrimination benefits firms because firms can earn more profit since they charge different prices for the same single product compared with multiple products
Answer:
C. updating the accounts at the end of the period.
Explanation:
Adjusting the accounts is the process whereby transactions are reviewed ( usually at the end of an accounting period) to ascertain that all transactions have been recorded. This process ensures that necessary adjustment are made where necessary.
For example, a prepaid insurance account may require adjustments that will ensure that insurance expense is recognized in the books. This may be done by determining the period of expired insurance and posting necessary entries. The process of doing this is known as adjusting the accounts.
Answer: d. should produce more in the Texas factory and less in the Michigan factory
Explanation:
A company stands to benefit more if it produces at less cost because then it can produce more goods or rather make more profit.
This company is is spending $3 to make an additional unit in Texas than in Michigan where it is spending $5.
It is spending less in Texas and should therefore shift more production to Texas so that it can spend even less when producing and therefore become more profitable.
