Answer:
(D) is the same and output is lower than in the original long-run equilibrium.
Explanation:
In the long term the prices are flexible. They adapt to the new situation of a decrease in the demand. This is consistent with with a lower output, consecuences of the decreasing in the demand.
If x= number of passengers in excess of 84,
Revenue, R = (565-5x)(84+x)= 47460+565x-420x-5x^2 =47460+145x-5x^2
(a) For maximum revenue, first derivative of revenue function is equal to 0.
That is,
dR/dx = 145-2*5x = 145-10x = 0 => 145=10x => x =14.5 = 15 passengers
Maximum number of passengers for maximum revenue = 84+15 =99 passengers
(b) Maximum revenue = (565-5*15)(99) = (565-75)(99) =$48,510
Answer:
The answer is: $39,000
Explanation:
The gross domestic products includes all the production of final and legal goods or services. These final products can be sold or held in inventory.
In this case, the GDP should include the $20,000 car sold to Emily and the $19,000 that correspond to the car held on finished inventory.
Answer:
Entry for depreciation recognition:
Dr Depreciation Expense $2750
Cr Accumulated Depreciation $2750
Explanation:
Now we will add depreciation expense to the total expense which shows an increase in expenses. Likewise the accumulated depreciation will also be increased by $2750 which means it must be added to accumulated depreciated and entered as increase in the box with a positive sign.