Due to its ease of accommodating an increase in production, the representative firm in monopolistic competition typically has excess capacity over time.
<h3>What will happen if a monopolistic, rival business raises its price?</h3>
However, customers have the option to purchase a comparable product from another company if a monopolistic rival increases its price. When a dominant rival raises prices, it will not lose as many clients as a business operating in perfect competition, but it will lose more clients than a monopoly.
<h3>Why does monopolistic competition have excess capacity?</h3>
Natural monopolies or monopolistic competition both have excess capacity as a feature. It could take place as a result of businesses having to make lumpy or indivisible investments to boost capacity as demand rises.
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The correct answer that would best complete the given statement above would be option A. <span>Strong global competition can result in increased salaries in the United States. When we say global competition, this is the services or products provided by competing companies who are serving customers internationally. Hope this helps.</span>
Answer:
Demon Deacons Corporation
Adjusted Trial Balance:
Demon Deacons Corporation is presented below.
Accounts Debit Credit
Cash $ 9,400
Accounts Receivable 14,400
Prepaid Rent 4,320
Supplies 740
Deferred Revenue $ 1,800
Salaries Payable 700
Common Stock 11,000
Retained Earnings 5,400
Service Revenue 47,480
Salaries Expense 32,700
Rent Expense 2,160
Supplies Expense 2,660
$ 66,380 $ 66,380
Explanation:
a) Data and Calculations:
The December 31, 2021, unadjusted trial balance for
Demon Deacons Corporation is presented below.
Accounts Debit Credit
Cash $ 9,400
Accounts Receivable 14,400
Prepaid Rent 6,480
Supplies 3,400
Deferred Revenue $ 2,400
Common Stock 11,000
Retained Earnings 5,400
Service Revenue 46,880
Salaries Expense 32,000
$ 65,680 $ 65,680
Adjustments:
DR Rent Expense $2,160 CR Prepaid Rent $2,160
DR Deferred Revenue $600 CR Service Revenue $600
DR Salaries Expense $700 CR Salaries Payable $700
DR Supplies Expense $2,660 CR Supplies $2,660
Answer:
first I will journalize the adjustments:
a. Received a $510 utility bill for electricity usage in July to be paid in August.
Dr Utilities expense 510
Cr Accounts payable 510
b. Owed wages to 15 employees who worked two days at $55 each per day at the end of July. The company will pay employees at the end of the first week of August.
Dr Wages expense 1,650
Cr Wages payable 1,650
c. On July 1, loaned money to an employee who agreed to repay the loan in one year along with $660 for one full year of interest. No interest has been recorded yet.
Dr Interest receivable 660
Cr Interest revenue 660
effects on the accounting equation:
Assets = Liabilities + Equity
a. 0 510 -510
b. 0 1,650 -1,650
<u>c. 660 0 660</u>
660 2,160 -1,500
Revenue - Expenses = Net income Cash flow
a. 0 510 -510 0 OA
b. 0 1,650 -1,650 0 OA
<u>c. 660 0 660 0 OA</u>
660 2,160 -1,500 0 NC
Answer:
Total cost of receiving 8000 parts: 2878700
Detailed solution is given in tabular form below:
