C. the answer is c. hope it helps
Answer:
1 (a)
Since p = 10 - Q,
Revenue = p × Q=10Q - Q2
Hence, MR = 10 - 2Q.
MC is given fixed at 4.
Demand function is Q = 10 - p.
Plotting all these values in graph attached picture, we get
1 (b)
The monopolist will yield where MR = MC. So,
10 - 2Q = 4
Q = 3.
At this quantity, P = 7.
1 (c)
Consumer Surplus = Area of Triangle ABC = 0.5 × 3 × 3 = 4.5
Producer Surplus = Area of Rectangle ABEF = 3 × 3 = 9
2 (a)
Since the price is now P = MC = 4, this means
Q = 10 – 4 = 6.
2 (b)
The consumer surplus in this case would be = 0.5 × 6 × 6 = 18
The producer surplus will be zero.
2 (c)
Deadweight Loss = Total Surplus in Case B - Total Surplus in Case A
18 - 13.5 = 4.5
Answer:
On November 27
Debit Retained earnings $12,750
Credit Dividend payable $12,750
<em>(To record the dividend declared)</em>
On December 24
Debit Dividend payable $12,750
Credit Cash $12,750
<em>(To record dividend paid) </em>
Explanation:
- Dividends on gains on shares bought by the shareholders. They arise due to appreciation in share price and improvement in company's net income.
- The dividend payable was calculated as $.5 x 25,500 shares = $12,750.
- Dividends are usually paid out of retained earnings.
- The dividend payable account is debited when payment is to be made.