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frosja888 [35]
3 years ago
14

Suppose that the government decides to regulate this natural monopolist by requiring the firm to charge a price of P2. Which is

true if the government takes this approach
Business
1 answer:
Natali5045456 [20]3 years ago
7 0

If the government takes this approach, consumer surplus would increase.

A monopoly is when there is only one firm operating in an industry. A natural monopoly occurs when there is a high start-up cost associated with opening a business or a firm enjoys economies of scale.

Consumer surplus is the difference between the willingness to pay of a consumer and the price of the good. As the price of a good declines, consumer surplus increases. P2 is lower than P1, this means that if price is regulated to P2, consumer surplus would increase.

Please find attached the graph required to answer this question. To learn more, please check: brainly.com/question/15415230

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Newark Company has provided the following information:
djverab [1.8K]

Answer:

$1829000.

Explanation:

Given: Cash sales, $540,000.

           Credit sales, $1,440,000.

           Sales returns and allowances, $99,000.

           Sales discounts, $52,000

Now, computing net sales of Newark.

Net sales= Cash\ sales+ Credit\ sales- Sales\ discount- Sales\ return

Net sales= 540000+ 1440000- 99000-52000

⇒ Net sales= 1980000- 151000

∴ Net sales= \$ 1829000

Hence, Newark´s net sales is $1829000.

7 0
3 years ago
Oakton Furniture provided the following information relevant to its sales for December Year 1 and the first quarter of Year 2: D
Sauron [17]

Answer:

$33,630

Explanation:

Given that the company's collection history shows that 43% of credit sales are collected in month of sale and the remainder (57%) is collected in the following month then, in the month of January, Cash collections in January from December credit sales would be equivalent to 57% of December Credit sales. Using the actual figures,

Cash collections in January from December credit sales would be

= 57% * 59,000

= $33,630

7 0
3 years ago
Robinson Company had a net deferred tax liability of $34,000 at the beginning of the year, representing a net taxable temporary
forsale [732]

Answer:

deferred income tax benefit during 2018:     6,700

deferred income tax liability ending balance 27,400

Explanation:

beginning deferred tax laibility 34,000

this will change to 21,000 for the tax rate change

(100,000 x 21% = 21,000)

thus there is a decrease of 13,000 in the tax liablity

Then:

book income                    400,000

temporary differenc(net): (30,000)

Taxable income               370,000

30,000 x 21% = 6,300 additional deferred tax expense

13,000 benefit - 6,300 deferred tax expense = 6.700 benefit

5 0
3 years ago
John's Specialty Store uses a periodic inventory system. The following are some inventory transactions for the month of May 2013
jolli1 [7]

Answer:

Explanation:

The journal entries are shown below:

1. Purchase A/c Dr $5,400

          To Accounts Payable $5,400

(Being merchandise is purchased on credit)

2. Freight-In A/c Dr $500  

       To Cash A/c       $500

(Being freight charges are paid in cash)

3. Accounts Payable A/c Dr $800  

     To Purchase Returns A/c  $800

(Being return merchandise is recorded)

4. Cash A/c Dr  $5600  

     To Sales revenue A/c $5600

(Being merchandise is sold for cash)

5. No journal entry required

6 0
3 years ago
The flowchart above illustrates which type of organizational message?
ZanzabumX [31]

Answer:

<em>upward</em><em> </em><em>is</em><em> </em><em>the</em><em> </em><em>correct answer</em><em> </em>

6 0
3 years ago
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