Answer:
a. 1, 5 and 7
b. Resources will be allocated inefficiently
c. Differing sizes and capacities
d. Benefits due to economies of scale
e. Reduce prices and improve resource allocation.
Explanation:
The correct combination is 1, 5 and 7. The price of a pure monopoly firm is much higher than that of purely competitive firm because the later is a price taker while the former is a price fixer. Because of this, output of monopoly is lower while the profit margin is higher than that of competitive firm.
Assuming that a pure monopolist and a purely competitive firm have the same unit costs. In the case of a pure monopolist, resources will be allocated inefficiently because the monopolist does not produce at the point of minimum Average Total Cost and does not equate price and Marginal cost.
Even though both monopolists and competitive firms follow the MC = MR rule in maximizing profits, there are differences in the economic outcomes because pure competitors lack capacity and are smaller in size while the monopolist has the capacity to expand inorder to maximize profits.
The costs of a purely competitive firm and a monopoly may be different because the monopolist is capable of taking advantage of cost reduction arising from economics of scale. Pure competitors does not experience economies of scale due to their small sizes.
If a monopoly can experience economies of scale, it can reduce prices beyond that of the pure competitor thereby ensuring a more efficient resource allocation.
Answer: Productive means having been able to gain in large amounts.
Explanation: In the first paragraph of “The Effectiveness of Capital” the productive means having been able to produce in a huge quantity or large numbers. Here being able to gain profits in a large amount is considered productive.
Producing any kind of goods in large numbers is productivity. The productivity of any good depends upon many factors. Like a productive worker has a lot of capacity to do a lot of work and hence he is able to give productive results in the end. With a great number of profits.
Answer:
The journal entries to record both transactions should be:
February 1, 2018, repurchase of 1,000 stocks at $47
Dr Treasury stocks 47,000
Cr Cash 47,000
April 10, 2019, treasury stocks were sold at $50
Dr Cash 50,000
Cr Treasury stocks 47,000
Cr Additional paid in capital 3,000
Treasury stocks account is a contra equity account with a debit balance that reduces the value of total stockholders' equity.
They may make you tired.. so you would need to know that.
Answer:
Cash Balance = $12610
Explanation:
We can calculate the adjusted or true cash balance of Owen by making adjustments in the book balance using the transactions that only appear on the bank statement and are missing from the book balance calculation.
1. The bank service charges are a deduction that bank has made from the bank account of Owen. This, they should be deducted from the book balance.
2. A collection of $1170 made by the bank on Owen's behalf will increase the account balance of Owen. Thus, it should be added to the book balance.
3. The interest earned by Owen is also an addition to the bank balance and should be added in the unadjusted book balance.
The new or true cash balance of Owen will be,
Cash Balance = 11400 - 80 + 1170 + 120
Cash Balance = $12610
