False. In this case, the decrease in AD only decreases the output and not the price level. There is a downward inflexibility of the price level in the real world. In contrary, an upward flexible in prices so that there is an increase in both the output and the price level.
Answer:
The correct statement about the advertisement is that, it is the only potential as well as effective toll if the firm or business has the market power.
Explanation:
Advertising is the term which is stated as the medium by which the firm informs the potential customers or clients about the goods and services, arouse interest as well as induce the buyers to buy the product.
It helps in differentiate the products and also build the brand. So, in case the firm does not have the market power, then the firm would not have the no control over the quantity and the price of the product, which lead to ineffective advertising.
Answer:
c. debit to the investment account for $12,500.
Explanation:
The computation is shown below:
= Net loss reported × owning percentage
= $50,000 × 25%
= $12,500
Simply we multiplied the reported net loss and its owning percentage so that the accurate loss amount can come
Since it is a net loss, so it would be debited to the investment account for $12,500
Hence, all other options are wrong except option c.
