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3 years ago

The problem with average-cost pricing regulation is that once it is in place, there is a tendency for the:________

Business

1 answer:

tester [92]3 years ago

5 0

Answer:

a. ATC curve to shift upward

Explanation:

Average cost pricing is a form of pricing that appears as one of the ways in which the government operates a monopoly market. The government, however, may utilize average cost pricing as a tool to oversee prices monopolists may charge.

In other words, this implies that Monopolists always incline to produce less than the optimal amount boosting the prices up.

Hence, the problem with average-cost pricing regulation is that once it is in place, there is a tendency for the: "Average Total Cost curve to shift upward." This can be a result of an increase in output and reduction price

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On july 1, shady creek resort borrowed $250,000 cash by signing a 10-year, 8% installment note requiring equal payments each jun

Rina8888 [55]

Answer:

debit cash $250,000; credit notes payable $250,000

Explanation:

July 1, journal entries should be:

Dr Cash account 250,000
Cr Notes Payable account 250,000

Since cash is an asset account and it increases (the company receives money), it should be debited.

Since notes payable is a liability account and it increases, it should be credited.

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3 years ago

In 2021, the internal auditors of Development Technologies, Inc., discovered that a $4 million purchase of merchandise in 2021 w

stich3 [128]

Answer:

No entry required

However, the balance sheet must be adjusted to represent both, the 4,000,000 inventory and the 4,000,000 accounts payable

Explanation:

As the account involved:

Inventory and accounts payable are permanent account do not alter the net income for the year ended December 31th 2020.

Also as no cash is involve the cash statement is not affected too.

This delay on recording generate no problem for the accounting.

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4 years ago

You happen to be checking the newspaper and notice an arbitrage opportunity. The current stock price of Intrawest is $20 per sha

Vinil7 [7]

Answer:

Using the Put-Call parity principle where the following relationship holds:

Covered Call = Protective Put

Using the above, find the call price:

Call + Strike price / (1 + risk free rate) = Stock price + Put

Call + 18 / (1.08) = 20 + 3.33

Call + 16.67 = 20 + 3.33

Call = 23.33 - 16.67

Call = $6.66

The call option is overvalued at $7 so sell the Call option and buy the Put option and the Stock and borrow $16.67 which is the present value of the Put.

The net gain will be:

= 7 - 6.66

= $0.34

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3 years ago

An investor who purchases stock in a company becomes a(n):

Mariulka [41]

That investor will become a Shareholder.

The moment an investor become a shareholder, that investor is basically own some percentage of the company.

Each year, the company will pay the investors in the form of Dividend, which amount is depended on how well the company perform in that year

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4 years ago

The one-to-one relation between the inflation rate and the nominal interest rate, the fisher effect, assumes that the:

-Dominant- [34]

According to the Fisher effect, the real interest rate should remain constant. The Fisher effect was formulated by Economist Irving Fisher who studied the effects of inflation pertaining to interest rates.

7 0

4 years ago