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2 years ago

If a monopolist's production process has economies of scale and average cost exceeds marginal cost, then _____.

1 answer:

8 0

If a monopolist's production process has economies of scale and average cost exceeds marginal cost, then the government should make the price equal to the marginal cost.

Monopolies are businesses that are dominated by few people in the industry. They have little competition from others and have high barriers to entry.

They can sometimes reduce production to increase the price of their goods and services.

The government can regulate the activities of monopolies by making their price equal to the marginal cost.

Learn more about monopolies here:

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Newtech corporation is offering a 10% stock dividend. The firm currently has 200,000 shares outstanding and after-tax profits of

White raven [17]

The stock price after the stock dividend = $3636

<h3>What is Stock dividend?</h3>

A common stock dividend is a payment made from a company's profits to holders of common stock. The payout is made in the form of stock or cash, much like regular dividends. The amount of the common stock dividend may be regulated by law, especially if it is paid as a cash distribution that is effectively a liquidation.

<h3>What is shares outstanding?</h3>

All of the shares of a corporation that have been approved, issued, and purchased by investors and are now owned by them are referred to as outstanding shares. They differ from treasury shares, which are stock held by the corporation itself and have no rights that can be exercised.

<h3>According to the given information:</h3>

There are 200,000 shares in circulation.

Profits after taxes amount to $800,000.

$48 is the current stock price.

Stock dividend equals 10%

number of shares outstanding following a stock dividend

=200,000*(1+10%)

=220,000

earnings per share following stock dividends

=$800,000/220,000

=$3.636

As a result, $3.636 worth of earnings per share remain after the stock dividend.

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5 0

1 year ago

The Righter Shoe Store Company prepares monthly financial statements for its bank. The November 30 and December 31, 2016, trial

dlinn [17]

Answer:

purchase of supplies 5,600

insurance expense 2,300 debit

prepaid insurance 2,300 credit

Explanation:

(1) What was the cost of supplies purchased during December?

invneotry identity:

beginning supplies + purchase = ending supplies + expense

the left side are the input. The supplies could come from previous prior or be pruchase.

The right side the outputit could be consumer or kept at stock

3,100 + p = 4,600 + 3,600

purchase = 4,600 + 3,600 - 3,100 = 5,100

(2) What was the adjusting entry recorded at the end of December for prepaid insurance?

beginning insurance 7,600

ending insurance (5,300)

adjustment: 2,300

there was insurance expired for the value of 2,300

6 0

2 years ago

Choosing a differentiated targeting strategy has many benefits, but a potential downside is that __________.

Nesterboy [21]

<span>it requires a company or individual divide resources on multiple targets rather than one. Therefore, one must use these resources more efficiently because he or she is using the same amount, usually concentrated on one target, on multiple. A company should only use this strategy if it is extremely confident in its ability to market simultaneously to multiple groups.</span>

4 0

3 years ago

Williams company computed its cost per equivalent unit for direct materials to be $2.60 and its cost per equivalent unit for con

Zanzabum

(2.60X250,000)+(3.75X250,000)=1,587,500

8 0

2 years ago

Read 2 more answers

IBM purchased MRO Software Inc. for $740 million. MRO was a niche provider of software and services to help customers including

Elza [17]

Answer:

acquisition

Explanation:

Since in the question it is mentioned that IBM buy MRO software Inc for $740 million where the MRO is a niche provider that help the customers. While on the other hand the IBM plans to fold MRO into the unit of software

So, this is an example of the acquisition as IBM buy the MRO software

hence, the same is to be considered

6 0

2 years ago