Whether it is a case of external or internal economies of scale:
A. A number of firms doing contract research for the drug industry are concentrated
Larger changes within the industry lead to external economies of scale, so as the industry expands, the average cost of doing business decreases.
when external economies of scale exist?
External economies of scale take place when an industry as a whole expands and businesses profit from lower long-term average costs. External economies of scale are also known as advantageous external outcomes of industrial development.
An external economy of scale is shared by competitors, internal economies of scale provide larger competitive advantages.
To learn more about external economies refer to:
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Answer:
(a) $210,000
(b) $351,500
Explanation:
(a) Given that,
Fair value of equipment = $1,440,000
Face Amount of the note = $1,230,000
Gain on sale:
= Fair value of equipment - Face Amount of the note
= $1,440,000 - $1,230,000
= $210,000
(b) Given that,
Accrued Interest Payable = $290,000
Interest rate = 5%
Gain on the partial settlement and restructure of the debt:
= Accrued Interest Payable + (Face amount of note × Interest rate)
= $290,000 + ($1,230,000 × 5%)
= $290,000 + $61,500
= $351,500
Answer:
a. Debit Unearned Rent Revenue, $4,500; Credit Rent Revenue, $4,500
Explanation:
When the company receives the $27,000 check for six months of advance rent, it records the unearned revenue in a liability account named Unearned Rent Revenue. The resulting journal entry is:
(Dr) Cash, $27,000
(Cr) Unearned Rent Revenue, $27,000
With the passing of each month, the company <em>earns</em> one-sixth (1/6) of the unearned rent revenue (or $4,500), essentially reclassifying the revenue from unearned to earned. Therefore, after one month, the resulting journal entry is:
(Dr) Unearned Rent Revenue, $4,500
(Cr) Rent Revenue, $4,500
Answer: Option B
Explanation: In simple words, aggregate demand refers to the total amount of goods and services that the consumers are willing to consume at a specific price and in a specified time.
A decrease in dollar value will result in less purchasing power for imports. This will result in less supply which will ultimately increase the price of the imported quantity, thus, resulting in decrease in aggregate demand.
Learning is pervasive in our lives, but there are two different theories on how people learn the behavioral theories and the cognitive theories.
Option C is correct
Explanation:
The behavioral theory attempts to explain the actions of the person by examining the antecedents and implications of previous experience in the community and the existing relationships he or she had established.
A behavioral example is when teachers recompense their classes or certain students for good behavior at the end of the week with special benefits. Penalties are used to use the same principle. If the student is wrong, the professor may take some privileges away.
Cognitive theory is a theoretical approach that aims to clarify your actions by understanding the patterns of thinking.
For example, a psychiatrist uses cognitive science techniques as she shows you how to recognize and change ill-suited patterns of thought.
