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3 years ago

Explain how and why governments may want to regulate the price setting of a natural monopoly.

1 answer:

7 0

AS natural monopoly could be like emeralds from Colombia say or softwood from British Columbia, Canada whereby there are few competitors that have the product. The government may want to regulate the price of such goods such that it can't be accused of flooding the market on the world market (ie not too low a price) and this could be regulated by trade agreements like NAFTA or may limit the upper price limit to allow more purchasers to buy the product. Personally it is felt that so-called 'free-trade' agreements interfere far too much in the economies of member countries especially junior partners as they encourage the influx of cheap goods from other countries, thus putting out of business or lowering standards for good production within the country and also violating the laws of the country by provisions which overrule the laws normally used to protect goods from the country like import duties for example.

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When the activity level changes, ______. Multiple select question. total variable cost changes variable cost per unit changes to

miskamm [114]

When there is a change in activity level, then:

Total variable cost changes.
Variable per unit remains constant.

<h3>What happens when activity level changes?</h3>

As a result of the change in activity level, the variable cost will change in total because it increases when there is an increase in number of units produced.

The unit variable cost will however remain the same as the company incurs the same variable cost per unit produced.

Find out more on variable cost per unit at brainly.com/question/26373444.

8 0

2 years ago

Bird's Eye View manufactures three different sizes of bird cages: small (for finches and canaries), medium (for cockatiels and s

Lesechka [4]

Answer:

Step 1: Identify cost activities and their cost drivers

- Material Handling ⇒ Labor hours

- Automated processing ⇒ Machine hours

- Plastic parts insertion ⇒ No. of parts

- Inspection ⇒ Labor hours

- Packaging ⇒ Orders shipped

Step 2: Assign overhead costs to activities identified

- Material Handling ⇒ $55,000

- Automated processing ⇒ $40,000

- Plastic parts insertion ⇒ $6,000

- Inspection ⇒ $29,000

- Packaging ⇒ $31,000

Step 3: Calculate Total Estimated Cost Driver Activity(for large cage only)

- Material Handling ⇒ 2 per unit × 350 = 700 labor hours

- Automated processing ⇒ 4 per unit ×350 = 1400 machine hours

- Plastic parts insertion ⇒ 8 per unit × 350 = 2800 no. of parts

- Inspection ⇒ 2 per unit × 350 = 700 labor hours

- Packaging ⇒ 180 orders shipped

Step 4: Calculate overhead rates

- Material Handling ⇒ $55,000 ÷ 700 = $79 per labor hour

- Automated processing ⇒ $40,000 ÷ 1400 =$28 per machine hour

- Plastic parts insertion ⇒ $6,000÷ 2800 = $2 per part

- Inspection ⇒ $29,000÷ 700= $42 per labor hour

- Packaging ⇒ $31,000 ÷ 180=$172 per order shipped

Step 5: Apply overheads to product

Since the the amount of activity consumed by each product is no given , it is unable to calculate per unit cost of overhead.

If it were given, the total activity consumed by the product would be multiplied by their respective activity rates calculated above, and then those amounts would be added together to get total overhead consumed by Large cage. Lastly, that total overhead will be divided by no. of units produced to get per unit overhead cost.

7 0

3 years ago

if china’s economy maintains a 7% annual growth rate over the next 20 years, about how large will its economy be in 20 years if

grin007 [14]

Answer:

If an economy grows at 7% per year, it will take 70 / 7 = 10 years for the size of that economy to double, and so on.

3 0

2 years ago

Tonya operates a nail salon as a sole proprietorship. Tonya also owns and rents an apartment building. This year Tonya had the f

Gala2k [10]

Answer:

Tonya's AGI $70,335

Explanation:

Tonya's AGI:

Revenue from salon $215,900

Salaries paid to beauticians ($113,125)

Nail salon supplies ($58,500)

Salon's operating income $44,275

Interest income $28,138

Rental revenue from apartment building $78,050

Depreciation on apartment building ($32,250)

Real estate taxes paid on apartment building ($27,750)

Rental income $18,050

Alimony paid to her husband $15,000

Self-employment tax on salon income $3,128

Interest expense on education loan $2,000

Tonya's AGI $70,335

Real estate taxes paid on Tonya's house and charitable contributions are itemized deductions (below the line deductions).

3 0

3 years ago

On January 1, 2010, the balance in Tabor Co.'s Allowance for Bad Debts account was $13,085. During the first 11 months of the ye

ch4aika [34]

Answer:

(a) What was the total of accounts written off during the first 11 months?

bad debts written for the first 11 months = allowance for bad debt accounts January 1 balance + bad debt expense - allowance for bad debt accounts November 30 balance = $13,085 + $21,937 - $9,919 = $25,103

(b) As the result of a comprehensive analysis, it is determined that the December 31, 2010, balance of the Allowance for Bad Debts account should be $9,450. Show the adjustment required in the journal entry format.Allowance for bad debt Debit $Bad debt expenses Credit $

to determine the amount of bad debt expense that must be adjusted, we must subtract the estimated balance in December 31 from the balance in November 30 = $9,919 - $9,450 = $469. Since the November 30 amount is larger, it means that we over estimated our bad debt expense and it must be reduced:

Dr Allowance for doubtful accounts 469

Cr Accounts receivable 469

6 0

3 years ago