Answer:
Correct answer is (C) The price and output of plumbing services will rise
Explanation:
In a monopolistic market if the service or commodity is initially in long-run equilibrium, and then there is an increase in demand, then, there will increase in price in a short run as people demands more and the provider of the service or the producer of the goods will tend to provide or produce more.
Answer:
c. $0.70.
Explanation:
The consumer surplus is determined by subtracting Equilibrium price from willing price
Here there are 3 willing prices which are greater than Equilibrium price. The price to buy the forth can is $0.40 which is below the equilibrium price of $0.55, so he will not buy the forth can.
Willing price for first can (W1) = $0.95
Willing price for second can (W2) = $0.80
Willing price for third can (W3) = $0.60
The Equilibrium price (E) is $0.55
Consumer Surplus = (W1 - E) + (W2 - E) + (W3 - E)
Consumer Surplus = ($0.95 - $0.55) + ($0.80 - $0.55) + ($0.60 - $0.55)
Consumer Surplus = $0.40 + $0.25 + $0.05
Consumer Surplus = $0.70.
Answer:
Units accounted for: 7,500
Explanation:
We are going to follow physical units so the method W/a or FIFO is not relevant for this step:
Beginning and transferred in are the input, fro mwere the units come from:
beginning WIP 4,500
transferred in 3,000
Units to account for: 7,500
While, ending WIP and transferred-out are were the untis are now:
Ending WIP 6,000
transferred-out 1,500
Units account for 7,500
Answer:
a) Disclose in the notes
b) no Disclosure
c) Record a liability
Explanation:
There are three scenarios to be considered
1) It is reasonably possible that Huprey will lose a pending lawsuit. The loss cannot be estimable
First, premise is that Huprey Co. is facing a lawsuit and the possibility of a loss is most possible. If Huprey Co is able to recognize the amount of loss, then he would have been able to record a liability but the inability to estimate the loss means, the company can o<u>nly make appropriate disclosure in notes</u>
2)Huprey is being used for damages of $2 million. It is very unlikely (remote) that Huprey will lose the case.
This second premise is also a lawsuit on damages for $2 million, however, it is most reasonably acceptable that Huprey will win the lawsuit. As such there is no loss, that way there will be no disclosure in Huprey Co's books.
3. Huprey can reasonably estimate that a pending lawsuit will result in damages of $1.25 million, it is probable that Huprey will lose the case.
The probability of losing a case means that there will be a loss to be recorded in the books and since the damages are already estimable to be $1.25 million. Huprey Co should record a liability
