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2 years ago

D. Short answer questions:

Business

2 answers:

erma4kov [3.2K]2 years ago

6 0

Answer:

Explanation:

a. Monopoly has no competition so it can charge a higher price and produce less quantity when compared to a perfectly competition. For a consumer, perfectly competition which provides more goods at a lower price is better.

b. Due to lack of competition, monopoly does not have to be efficient in its resource allocation. To increase the allocative efficiency, the government can pass regulation to limit price charged and increase quantities of goods produced by the monopoly.

Dennis_Churaev [7]2 years ago

5 0

Answer:

Explanation:

compared 2 perfectly competitive firms, monopoly charges higher price and produces less quantity.

perfectly competitive firms are better for consumer

govt regulation can increase monopoly's efficiency by putting restriction on price n requiring quantity of goods produced.

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Elson co, needs to raise debt and for this purpose issued two different bonds, Bond A and Bond B. Both bonds have 20 years to ma

slega [8]

Answer:

The right solution is "$20.733.16".

Explanation:

According to the question,

Face value,

= $20000

Rate (r),

= .035

Bond A:

= $\frac{Face \ value}{(1+r)^n}$

= $\frac{20000}{(1+.035)^{40}}$

= $5051.45$ ($)

Bond B:

= $\frac{1100\times 12.0941}{(1+.035)^{10}} + \frac{1400\times 10.9205}{(1+.035)^{26}} + \frac{20000}{(1+.035)^{40}}$

= $9431.11+6250.6+5051.45$

= $20733.16$ ($)

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2 years ago

Roak Company and Clay Company are similar firms that operate in the same industry. Clay began operations 2 years ago and Roak st

babunello [35]

Answer: Clay Company

Explanation:

Based on the information given, the current, previous year and two previous years beforehand profit margins of Clay company are greater than the corresponding profit margins of Roak company.

This means that Clay company has a better profit margin and shows that they retain a higher percentage of their revenue after costs are taken out as opposed to Roak company.

8 0

2 years ago

Ceteris paribus, for the owner of a sawmill, lumber and the sawdust that go into particle board are

Katyanochek1 [597]

Ceteris paribus, for the owner of a sawmill, lumber and the sawdust that go into particle board are complements in production; by-products. Ceteris Paribus is a Latin phrase meaning "all other things remaining equal". It is commonly used in economics.

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2 years ago

The Assembly Department produced 1,000 units of product during March. Each unit required 1.25 standard direct labor hours. There

frutty [35]

Answer:

Debit Work in process for $15,625

Debit Direct labor time variance for $625

Credit Direct labor rate variance for $650

Credit Wage payable for $15,600

Explanation:

Before preparing the journal, the following calculations are done first:

Wage payable = Actual hours * Actual rate per hour = 1,300 * $12 = $15,600

Direct labor time variance = (Actual hours - Standard hours) * Standard direct labor rate = (1,300 - (1,000 * 1.25)) * $12.50 = $625 Unfavorable

Note: Direct labor time variance is Unfavorable because Actual hours is greater than Standard hours.

Direct labor rate variance = (Actual rate - Standard rate) * Actual hours = ($12 - $12.50) * 1,300 = -$650 Favorable

Note: Direct labor rate variance if Favorable because Actual rate is lower than the Standard rate.

Work in process = Wage payable + Absolute value of direct labor rate variance - Direct labor time variance = $15,600 + $650 - $625 = $15,625

The journal entries will now look as follows:

Date Particulars Debit ($) Credit ($)

Mar. 31 Work in process 15,625

Direct labor time variance 625

Direct labor rate variance 650

Wage payable 15,600

(To record the direct labor in the Assembly Department.)

4 0

2 years ago

Stealth bank has deposits of $300 million. it holds reserves of $20 million and has purchased government bonds worth $300 millio

ryzh [129]

First let us identify if the asset is a gain or loss. An asset is a gain if it contributes to the banks overall finance while it is a loss if it is a cost directly or indirectly.

Deposits of $300 million = Gain (+)

Reserves of $20 million = Gain (+)

Purchased government bonds worth $300 million = Loss (-) ---> This entails cost

Selling bank’s loans at current market value of $600 million = Gain (+)

Therefore adding up everything to get the banks net worth:

Stealth banks net worth = $300 M + $20 M - $300 M + $600 M

Stealth banks net worth = $620 million

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2 years ago