Answer:
This implies that bus is an inferior good and car is a normal good.
Explanation:
Initially, Jim's income was $5000 a year.
As his income increases to $60,000 a year, he decides to buy a car instead of using the bus.
In other words, with the increase in income, the demand for traveling by bus is declining.
This implies that it is an inferior good.
The demand for the car is increasing with an increase in income.
So, the car is a normal good.
An inferior good can be defined as a product that shows negative elasticity. This means with an increase in income its demand declines an vice versa.
A normal good can be defined as a product that shows positive income elasticity. That is, its demand increases with rise in income and vice versa.
Answer:
Journalizing correcting entries:
Aug. 1
Debit Utilities Expense $530
Credit Repairs Expense $530
To correct wrong posting.
Aug. 5:
Debit Sales Revenue $1,200
Credit Vivian Lynum, Capital $1,200
To correct wrong posting.
July 30:
Debit Supplies Account $280
Credit Suspense Account $280
To correct the wrong posting.
Explanation:
The July 6 entry is difficult to decide the correcting entry since the wrong amount was not given. There is nothing that can be done with the $160 supplied in the question.
Answer:
Limited liability company
Explanation:
A limited liability company is one that the owners are not personally liable for the business. Rather the company is a legal entity on its own and can be sued legally as a sepearte entity from its owners.
It combines features of a corporation and a partnership or sole proprietorship.
This will be the best type of business given that the business will not be expected to earn for the first two years. The sisters will not be personally liable for any debt incurred.
Also the business will continue even if only one of the sisters remains.
So an LLC is the best option for them.
Answer:
The correct answer is option B.
Explanation:
A firm sells a product in a purely competitive market.
The marginal cost of the product at the current output of 200 units is $4.00.
The average variable cost is $3.50.
The market price of the product is $3.00.
The market price is not covering the average variable cost. In this situation, the firm must be incurring losses. To minimize losses the firm should produce less than 1,000 units at the point where marginal cost is equal to market price and the average variable cost is being covered.
