Answer:
E. The demand for loanable funds increases.
Answer:
The aggregate demand curve is downward sloping because when the general level of price rise; the real wealth of consumers will decline (with a certain amount of money you end up buying less goods), the interest rates will increase (as inflation increases, interest rates also increase), and the price of exported goods increases (as the general price of goods increase, the production of goods will also become more expensive).
Answer:
The credit on December 31 is to credit Treasury Stock with $15,000.
Explanation:
There are two methods for accounting for Treasury Stock. The first is the par value method. With this method, the Treasury Stock account is debited or credited with the par value for each transaction, while the difference in par value is taken to the Additional Paid-in Capital account.
Using the cost method, the Treasury Stock account is debited and credited with the value of each transaction and the Additional Paid-in Capital account is not affected.
This implies that under the cost method, the purchase and resale of treasury stock is recorded by debiting and crediting the treasury stock account by the actual cost of purchase and actual value of sale.
Solution:
Q MC FC VC TC AFC AVC ATC
0 NA 50 0 50 NA NA NA
1 50 50 50 105 50 50 105
2 19 50 64 104 20 32 52
3 85 40 149 189 13.33 49.67 63.00
4 223 40 372 412 10 93 103
TC=FC+VC
FC=40
VC=TC-FC
MC=change in TC
AFC=FC/Q
AVC=VC/0
ATC=TC/0
a) TC when 0=0 = 40 because FC = 40 remains constant and the firm still incurs a total cost equal to its FC when it produces zero output.
b) MC for first unit = 45
c) ATC of 3rd unit = 63
d) AVC for 4th unit = 93
Knowing your plan of attack
