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Hitman42 [59]
3 years ago
9

Assume a firm is a monopoly and enjoys​ $10 million profits per year. The firm lobbies to have a moratorium passed by Congress o

n new firms in its market for the next 25 years. If there is no discount​ rate, how much would the firm be willing to pay to deter​ entry? A. ​$250 million. B. ​$100 million. C. ​$250 billion. D. ​$25 million.
Business
1 answer:
shtirl [24]3 years ago
4 0

Answer: A. $250 million

Explanation:

The firm is a Monopoly and is lobbying Congress to remain that way. As a monopoly it makes $10 million a year and wants to remain a monopoly for the next 25 years.

Assuming there is no discount rate which means that the value of money stays the same over the 25 years, if they succeed in Congress, they have a chance to make a total profit of,

= 10 million * 25 years

= $250 million

If the maximum amount the firm can make if the lobbying is successful is $250 million, this is the maximum they will pay to lobby for a deterrence to entry. If they pay any amount more than $250 million, they will be making a loss and therefore it would make no sense to spend that amount of the lobbying.

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Crane Enterprises reported cost of goods sold for 2020 of $1,290,700 and retained earnings of $4,708,100 at December 31, 2020. C
Grace [21]

Answer:

  • Adjusted Cost of Goods sold = $1,206,860
  • Adjusted Retained Earnings = $4,675,190

Explanation:

An overstated opening inventory would overstate Cost of Goods sold. The overstatement should therefore be removed from the Cost of goods sold.

An overstated closing inventory would understate Cost of Goods sold. The overstatement should therefore be added to the Cost of Goods sold.

Adjusted Cost of Goods sold 2020 = Cost of Goods sold + 2020 ending inventory - 2019 opening inventory

= 1,290,700 + 32,910 - 116,750

= $1,206,860

Adjusted Retained earnings

The retained earnings would have to be adjusted for the overstatement of the current inventory by $32,910 because this understated Cost of Goods sold.

= Retained earnings - Overstatement of inventory

= 4,708,100 - 32,910

= $4,675,190

8 0
2 years ago
Developing the ability to solve problems can help you
atroni [7]

Complete Question:

Developing the ability to solve problems can help you.

The first step you should take is to

________ the problem and then solve it.

Group of answer choices

a. advance in your career.

b. create.

c. become more ethics.

d. identify.

e. change your values.

f. ignore

Answer:

d. identify

Explanation:

The problem-solving process can be defined as the systematic approach used to identify and determine the solution to a particular problem.

The steps involved in the problem-solving process are;

1. Identify and define the problem: this is the first step to be taken in solving a problem. This is to ensure that, the focus is on the main issue or situation and all efforts is channeled in the right direction rather than the symptoms.

2. Gathering of information: this helps to consider the options available in solving a problem effectively.

3. Consider your options: this helps to compare the available and viable solutions to the problem.

4. Weigh disadvantages and evaluate a solution: you weigh the disadvantages of each solution, before choosing the one with the least disadvantages.

<em>Hence, the first step you should take is to identify the problem and then solve it.</em>

7 0
3 years ago
Read 2 more answers
By lowering production costs, subsidies help foreign competitors gain export markets. True or False
Luden [163]

Answer:

False

Explanation:

Whenever, there will be reduced production costs, due to any reason in the economy, then the goods will be cheaper and accordingly the sale will be in abundance assuming other factors remain constant.

Thus, due to subsidies the cost to producers will be less and then exporters will not be able to get more share as domestic goods will cost cheaper.

Thus, there will not be any gain to foreign competitors in our domestic markets, as they will not get any share extra rather they will loose as a foreign competitor. In fact goods which are exported will also cost low, and therefore, will gain new customers.

Therefore, above stated statement is false.

5 0
3 years ago
Why is place mix regarded as an important element of marketing mix ? How does the consideration related to market have an impact
Paha777 [63]

Answer:

is d

Explanation:

6 0
3 years ago
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Data related to the inventories of Mountain Ski Equipment and Supplies is presented below:
guajiro [1.7K]

Answer:

<em>b. $ 90,000.</em>

Explanation:

Net realizable value(Market value) for apparel=Selling price minus associated selling expenses e.g sales commission.

Market value for  Apparel= $ 120,000-(120,000*10%)

                                          =$ 120,000-12,00

Market value for  Apparel =$108,000

Apparel cost=$90,000

The lower of the above costs is $90,000.

Lower of cost or market is one of approaches of valuing and reporting inventory. Ending inventory is usually stated at historical cost. When original cost of the ending inventory is greater than the net realizable value, meaning that the inventory has lost value. The inventory has decreased in value below historical cost, then its carrying value is reduced and reported on the balance sheet. The method for reporting this is called current market value.

4 0
3 years ago
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