The following information is drawn from Royal Industries' cash budget: Cash Receipts $ 40,000 Beginning Cash Balance $ 10,000 Ca
sh Payments $ 48,000 Desired Ending Cash Cushion $ 5,000 If there is a cash shortage, the company borrows money. If a surplus occurs funds are used to repay loans or to invest in short-term assets. The company had no debt before January 1st. The amounted "needed" to borrow or the amount "available" for repayment of debt in January would be Multiple Choice $2,000 available. $3,000 needed. $7,000 available. $13,000 needed.
1 answer:
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Answer: See explanation
Explanation:
a. This has been solved and attached.
Note that the net benefits was calculated as:
= Marginal benefit - $200
b. Looking at the table and information provided in the attachment, we would see that no company offer to build the museum because since their cost of $1000 can't be covered by the revenue generated. The highest revenue gotten for the single price monopolist is $760 and this can't even cover their cost.
c. Based on the scenario given in (c), the highest revenue the price discriminating monopolist would make is $1200 and coupled with the fact that the cost is $1000, the maximum bid that a private company would make to supply the museum to Smallsville is $200 ($1200 - $1000)
