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4 years ago

Which are characteristics of microeconomics? (Select all that apply.)

1 answer:

5 0

Characteristics/Features of , microeconomics

Nature of Analysis - In microeconomics the behavior of individual consumers and producers in detail is analyzed. It is the study of the subject matter from particular to general.

Method - Microeconomics divides the economy into various small units is analyzed in detail. It is a slicing method.

Scope - Microeconomics analysis involves product pricing. factor pricing and theory of welfare.

Application - Both theoretically and practically , micro economics is useful in formulating various policies, resource allocation. Public finance, international trade....

Nature of Assumption - Assumption of Ceteris Parabus is always made in every microeconomics theory. it means theory is applicable only when other things being same.

Hope that helps!!!!

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Anthony Finley wishes to become a millionaire. His money market fund has a balance of $287,270 and has a guaranteed interest rat

mrs_skeptik [129]

Answer:

15 years

Explanation:

The target accumulated future amount is the future value of the initial investment(present value), hence, using the future value formula provided below we can determine the investment time horizon in years required to accumulate the target amount:

FV=PV*(1+r)^n

FV=$1,200,000

PV=$287,270

r=10%

n=investment period in years=unknown

$1,200,000=$287,270*(1+10%)^n

$1,200,000/$287,270=(1+10%)^n

$1,200,000/$287,270=(1.10)^n

take log of both sides

ln($1,200,000/$287,270)=n ln(1.10)

n=ln($1,200,000/$287,270)/ln(1.10)

n=15.00years

4 0

3 years ago

Match each inequality or equality to the corresponding term for the monopolistic competitor operating at optimal, short-run prod

klio [65]

Pure monopoly and pure competition are the opposing limiting cases. Monopolistic competition exists between those two.

Monopolistic competition is distinguished by the fact that, despite being closely related to one another, the products of various firms are not all the same but rather differ from one another. As numerous businesses compete to sell their products, there is also a component of competition.

Price=Average Total Cost Total Revenue is equal to total cost so there

is zero economic profit.

Price>ATC It means that firm is earning short run

economic profit.

Price<ATC It means firm is earning Short Run Economic

Loss

Price> Marginal Revenue It means firm has market power

Price>Marginal Cost Mark up

Learn more about Monopolistic competition, here

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8 0

1 year ago

On December 31, 2020, Vaughn Co. performed environmental consulting services for Hayduke Co. Hayduke was short of cash, and Vaug

Alinara [238K]

Answer:

1. 31 Dec

Dr Notes receivable $261,600

Dr Discount on notes receivable $45,401

Cr Sales revenue $216,199

B. 31-Dec

Dr Discount on notes receivable $21,619.9

Cr Interest revenue $21,619.9

C. Dec-31

Dr Discount on notes receivable $23,781.1

interest revenue $23,781.1

Dr Cash $261,600

Cr Notes receivable $261,600

Explanation:

A. Preparation of the journal entry to record the transaction of December 31, 2015, for the Ed Abbey Co

December 31, 2015

Dr Notes receivable $261,600

Dr Discount on notes receivable $45,401

($261,600-$216,199)

Cr Sales revenue $216,199

Computation of present value of note

PV of $261,600 due in 2 years at 10%

$261,600*.82645 = $216,199

B. Preparation of the journal entry for December 31, 2016

31-Dec

Dr Discount on notes receivable $21,619.9

[10%*$216,199]

Cr Interest revenue $21,619.9

C. Preparation of the journal entry for December 31, 2017

Dec-31

Dr Discount on notes receivable $23,781.1

interest revenue $23,781.1

($45,401-$21,619.9 )

Dr Cash $261,600

Cr Notes receivable $261,600

3 0

3 years ago

Open a general journal for the City of Monroe Community Foundation Trust Fund and record the following transactions for the year

ICE Princess25 [194]

Answer:

The beginning part of the question is found below:

The City of Monroe Scholarship Foundation private-purpose trust fund had the following account balances on January 1, 2017:

Debits Credits

Cash $49,500

Accrued Interest Receivable $7,500

Investments in Corporate Bonds $750,000

Net Assets Held in Trust $807,000

Totals $ 807,000 $ 807,000

Find below the necessary journal entries in the explanation section:

Explanation:

The interest received =6%*$750,000*6/12=$22,500

Dr Cash $22,500

Cr Interest income(balance) $15,000

Cr Accrued interest receivable $7,500

Additional funds of $205,500 received:

Dr Cash $205,500

Cr donation income $205,500

the investment of $200,000 in corporation stock

Dr investment in corporation stocks $200,000

Cr Cash $200,000

receipt of half of the year annual interest on bonds(as calculated above at $22,500)

Dr cash $22,500

Cr Interest income $22,500

cash is debited when there is an inflow and credited in case of outflows

The investment account is debited because it is an asset

8 0

4 years ago

Large purchased all of Small's voting stock for $11 million when Small's total owners' equity was $4 million. The book value and

hoa [83]

Answer:

The amount of goodwill that is recorded by Large is $5 million

Explanation:

Goodwill is the excess of price consideration paid to acquire controlling stake in a company over the fair value of the company's net assets.

Net assets in the sense implies the fair value of total assets less fair value of liabilities.

Fair value of total assets is $9 million

Fair value of liabilities is $3 million

As a result net assets upon acquisition is $6 million($9 million less $3 million)

Since the consideration paid in acquiring Small's voting stake is $11 million, goodwill is $5 million($11 million less $6 million).

The $ 5 million is the excess of purchase consideration over the fair value of Small's net assets as at the date of acquisition

8 0

3 years ago