You produce stereo components for sale in two markets, foreign and domestic, and the two

groups of consumers cannot trade with one another. If your firm practices third-degree price

discrimination to maximize profits, the marginal revenue

A) in the domestic market will equal the marginal cost.

B) in the foreign market will equal the marginal cost.

C) in the domestic market will equal the marginal revenue in the foreign market.

D) all of the above

E) none of the above

Please answer these questions in full with details!

1. Define positive and negative externalities; describe examples of each. What types of government policies may be appropriately applied in cases of externalities? Explain a “corrective tax”.

2.. Define and explain the relationship between Total Revenue, Total Cost, Profit, Marginal Product, Marginal Cost, and Marginal Revenue. What is the difference between “economic profit” and “accounting profit”? What is the relevance of “opportunity costs”?

Are major-league baseball clubs profit-maximizing monopolies? Some observers of this market have contended that baseball club owners want to maximize attendance or revenue. Alexander (2001) says that one test of whether a firm is a profit-¬maximizing monopoly is to check whether the firm is operating in the elastic portion of its demand curve (which he finds is true). Why is that a relevant test? What would the elasticity be if a baseball club were maximizing revenue?

A machine costs $35,000 to buy and $5,000 per year to operate and maintain. It will have a salvage value of $8,000 in 9 years. It will generate $10,000 per year in net revenue for the first four years, and then the revenue will fall by $1,000 each year after. If the company purchasing the machine uses a MARR of 7% to make project , find the NPW, NFW, and AW. Is this project worth undertaking if no loss is expected?

Work in Microsoft Excel (show Code)

Question 1

1. The table below shows the income and expenditure relating to a product in 2019 and 2020. Complete the table with the correct value in every empty cell, and present a finished version in your answer book.

Cost / Revenue Table 2019/2020

A sale was made for $22,000 and the sales tax rate is 6%. What is included in the journal entry to record this sale?

- credit to sales tax payable for 1320

-debit to cash for 22000

-debit to sales discount for 1320

-credit to sales revenue for 23200

If $12,000 is collected in advance on November 1st for 6 months' rent. What amount of rent revenue should be recognized by December 31?

- none, it will be recognized at the end of 6 month

- 2000

- 4000

-12000

A machine costs $35,000 to buy and $5,000 per year to operate and maintain. It will have a salvage value of $8,000 in 9 years. It will generate $10,000 per year in net revenue for the first four years, and then the revenue will fall by $1,000 each year after. If the company purchasing the machine uses a MARR of 7% to make project , find the NPW, NFW, and AW. Is this project worth undertaking if no loss is expected?

Work in Microsoft Excel (show Code)

Presented below is income statement information of the Schefter Corporation for the year ended December 31, 2018. Sales revenue $ 512,000 Salaries expense 82,800 Interest revenue 6,800 Advertising expense 11,500 Gain on sale of investments 9,200 Cost of goods sold 281,600 Insurance expense 14,300 Interest expense 3,900 Income tax expense 41,000 Depreciation expense 24,000 Required: Prepare the necessary closing entries at December 31, 2018

DGO Corporation has to decide whether to undertake project 1 or project 2. The projects have the following initial investments and future net revenues:

Using IP method and a discount rate of 12%, which project would you recommend? Why or why not. This in reference  to Profitability Index