Answer:
The correct answer is option A.
Explanation:
The exit of existing firms from the market will reduce the overall market supply. This will cause the market supply curve to move to the left.
This leftward shift in the market supply curve will lead to an increase in the equilibrium price. The equilibrium quantity will be reduced.
The other firms in the market will get more market share and higher profits.
Answer:
See below
Explanation:
Computation of net cash provided by operating activities using the indirect method
Cash flow from operating activities
Net income
$2,700,000
Adjustments to reconcile net income
Add: Decrease in accounts receivable
$357,400
Less: Decrease in accounts payable
$296,500
Add: Depreciation expense for the year
$162,300
Net cash provided by operating activities
$2,923,200
Answer:
$4,900
Explanation:
Given that,
Total cost at a production level of 400 units = $8,500
Each unit of pulp requires = 6 direct labor hours
Variable cost = $1.50 per direct labor hour
Total variable cost:
= Cost per direct labor hour × Direct labor hours required for each unit × No. of units produced
= $1.50 × 6 × 400
= $3,600
Total cost is sum total of total fixed cost and total variable cost.
Total cost = Total fixed cost + Total variable cost
$8,500 = Total fixed cost + $3,600
$8,500 - $3,600 = Total fixed cost
$4,900 = Total fixed cost
