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wariber [46]
3 years ago
5

Suppose that the inverse demand equation is p​ = 100 minus 2Q and the supply equation is p​ = 2Q. If the price is controlled at

​$60​, this is a price floor . In this​ market, there will be a surplus of nothing units ​(enter your response as a real number rounded to one decimal place​).
Business
1 answer:
Irina18 [472]3 years ago
4 0

Answer: P =$50

Q= 25

Explanation: P= 100-2Q

P= 2Q

To get the quantity supplied Q, we have to educate both equations

100-2Q=2Q, 100=2Q+2Q

100=4Q, Q=100/4 , Q=25

To get the equilibrium price we have to substitute the value of Q which is 25 into any of the equation.

Using equation 1

P=100-2Q, P=100-2(25)

P=100-50, P=$50.

If the price is controlled at $60, then the production pays the producer this is because a commodity is not expected to be sold at the equilibrium price, price flooring is a way that government or a group control the market price of a commodity or produce by imposing a particular price on it. This is to ensure that the producers are not at loss with their production, a price floor is always higher than the equilibrium price to be effective as seen in the example given above, price floor is $60 while equilibrium price is $50.

An example of a price floor for services can be seen in the minimum wage stated by the government this is to ensure that people's services are not misused anyhow.

Price flooring most times can lead to surplus quantity produced if consumers are not willing to pay the price, because the producer will be wiling to produce more in order to make more profit.

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The issuance of common stock and declaration and payment of cash dividends will result in the following:
jeka94

Answer: a. Increase in financing activities for the issuance and a decrease in financing activities for the dividends.

Explanation:

When using the Indirect method of the Cash Flow Statement, you will find 3 sections namely, the Operating Activities, Investing Activities and Financing Activities.

The Operating Activities deal with the normal business Transactions and related entries that keep the business running.

Investing Activities have to do with entries related to Non Current Assets as well as stocks and bonds in other companies.

The above relates to the Financing Section that handles the raising of Capital needed to run the business. They include long term debt and Equity.

When new Equity is announced it is a Cash inflow for the business meaning that there will be an INCREASE in Financing Activities.

Dividends have the effect of reducing Equity so it is a Cash Outflow. This means that there will be a DECREASE in Financing Activities as a result of the declared Dividends.

8 0
3 years ago
If retained earnings decreased during the year, and no dividends were paid, which of the following statements must be true? (A)
Fynjy0 [20]

Answer:

The answer is (A) Expenses for the year exceeded revenues.

Explanation:

If retained earnings decreased during the year, and no dividends were paid this would mean the company would have made a loss in the financial period.  A loss occurs when expenses  for the year exceed revenues.

3 0
3 years ago
You sell a stock for $50.00 that was held for 10 years. You earned a return of 8%. What was the original cost of the stock?
Irina18 [472]

Answer:

Original cost of the stock = $23.16

Explanation:

Original cost of the stock = Selling price of stock / ( 1 + r )^n

Original cost of the stock = $50 / (1+8%)^10

Original cost of the stock = $50 / (1.08)^10

Original cost of the stock = $23.16

7 0
3 years ago
Betram Chemicals Company processes a number of chemical compounds used in producing industrial cleaning products. One compound i
Dmitry [639]

Answer:

Betram Chemicals Company

1. Relevant benefits and costs for each alternative:

                             Sale at split-off         Sale after

                                                       further processing

Revenue                   $129,420            $238,620

Joint Costs                   73,000                 73,000

Cost for further processing -                   42,000

Gross profit               $56,420             $123,620

Additional profit         $0                       $67,200

2. Further processing of Anderine is more cost-effective by $67,200.

3. Further processing of Anderine is still better by $60,760.

Explanation:

a) Data and Calculations:

                                   Anderine     Dofinol      Cermine   Total Costs

Gallons                         5,600          7,600       $73,000     $73,000

Selling price per gal.  $13.00          $7.45

Sales revenue           $72,800     $56,620                        $129,420

Gross profit                                                                          $56,420

Further processing                                         $42,000

Total costs of production                              $115,000      $115,000

Output                      (5,600)            7,600         2,800

Selling price per gallon                    $7.45         $65

Sales revenue                              $56,620     $182,000 $238,620

Gross profit                                                                        $123,620

Profit from further processing:

Gross profit with further processing  $123,620

Gross profit before further processing 56,420

Additional profit                                   $67,200

1. Relevant benefits and costs for each alternative:

                             Sale at split-off         Sale after

                                                       further processing

Revenue                   $129,420            $238,620

Joint Costs                   73,000                 73,000

Cost for further processing -                   42,000

Gross profit               $56,420             $123,620

Additional profit         $0                       $67,200 ($123,620 - $56,420)

What if:

Purchasing order cost (5,600/500 * 20 * $10) = $2,240

Quality inspection cost (5,600/500 * 15 * $25) = $4,200

Additional costs = $6,440

Reduced additional profit = $60,760 ($67,200 - $6,440)

4 0
2 years ago
Crane Corporation incurred the following costs while manufacturing its product. Materials used in product $121,000 Advertising e
Vera_Pavlovna [14]

Answer:

Cost of goods manufactured = $328,400

Cost of goods sold = $343,700

Explanation:

The computation of cost of goods manufactured and cost of goods sold is shown below:-

(a) Cost of goods manufactured = Direct materials used + Direct labor + Depreciation on plant + Factory supplies used + Property taxes on plant + Work in Process 1 Jan - Work-in-process, 31 Dec

= $121,000 + $111,000 + $61,000 + $24,000 + $15,000 + $13,000 - $16,600

= $328,400

(b) Cost of goods sold = Finished goods, 1 Jan + Cost of goods manufactured - Finished goods, 31 Dec

= $61,000 + $328,400 - $45,700

= $343,700

8 0
3 years ago
Read 2 more answers
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