What amount will the seller receive at the closing?

For this question, prorate using the actual number of days in the month and year. Split the escrow fee 50-50. The seller will pay the revenue stamps, and the buyer will pay title insurance and the recording fee. The buyer assumes the existing mortgage balance of $127,042.42, the buyer will pay in cash at closing the difference between the purchase price and the loan balance, and the present rnonthly payment on the loan is $1,001.40. Closing is October 15.

Use these relevant facts: • Purchase price: $350,000 • Earnest money: $3,500 • Commission rate: 60% split 50-50 • Real estate taxes: $2,900 (paid in full for the current year Jan. 1 through Dec. 31) • Escrow fee: $800 • Title insurance: $1,150 • Insurance policy: $758 (annual premium) • Revenue stamps: $126.30 • Recording fee: $30 • Interest rate: 3.75% (paid in arrears , with the next payment due Nov.1)

The correct answer is: $201,847.28

1. Suppose tin mine’s workers can dig up two tons of tin ore per hour and tin ore sells for $20 per ton. Also assume that the tin mine is the only hirer of miners and faces the following labor supply function:

I =30w

where I is the number of workers per hour and w the wage rate per hour and that the firm’s hiring decisions affect wages.

Calculate the following:

a. the marginal revenue product per hour of the tin mining firm;

b. the number of workers per hour the firm would hire

c. the wage rate (in $/hour)

d. the number of workers that would be hired if the firm is forced by market competition to pay according to the marginal revenue product regardless of the number of miners employed.

e. Explain how an increase in the real wage rate could affect the demand for leisure and hence labor supply.

A monopoly creates a deadweight loss because the monopoly

2.

A ________ can price discriminate if, in part, it ________.

3.

A perfectly competitive firm's short-run supply curve is

1.

The firm's short-run supply curve runs up the marginal cost curve

2.

When marginal cost is greater than marginal revenue, the monopolist can increase its profit or minimize its loss by

3.

Which statement is true?

The Marginal Principle states, “Increase the level of activity as long as its marginal benefit exceeds its marginal cost. Choose the level at which the marginal benefit equals the marginal cost.” The Widget Factory makes and sells widgets in a perfectly competitive market, operating in the short term. Fixed cost per widget is $4 Labor costs is $23 per worker Widgets sell for $13 each (Revenue price per unit) Workers 10 11 12 13 14 15 16 17 Output 6 30 41 46 50 53 55 56 Using the data from above:.

Graph the Marginal Cost (MC), the Marginal Revenue (MR), and the Average Total Cost (ATC). What level of output will the firm select, and how many employees will be hired? What is the economic profit at this level of output, and what is the economic profit at output levels slightly above and slightly below this level?

Question 1. Suppose that the demand for candy increases. How would this affect the labor market in the candy industry?

Question 2: An Exclusive Union (Craft Union) might use which of the following to increase the wage rate?

“In a perfectly competitive market, firms always operate at the lowest per-unit cost.” Is the preceding statement true or false? Explain your answer.

For a perfectly competitive firm, profit maximization does not conflict with resource allocative efficiency. Do you agree? Explain your answer.

The perfectly competitive firm does not increase its quantity of output without limit, even thought it can sell all it wants at the going price. Why not?

Why is the marginal revenue curve for a perfectly competitive firm the same as its demand curve?

Complete the following cost schedule:

Quantity 0 1 2 3 4 5 6 7

Total Cost $9 $12 $16 $21 $30 $40 $52 $66

ATC

MC

Assuming a price of this product is $10, at what output rate is

a. Total revenue maximized?

b. ATC minimized?

c. Profit per unit maximized?

d. Total profit maximized?

Bartosiewicz Clinic uses client-visits as its measure of activity. During January, the clinic budgeted for 4,500 client-visits, but its actual level of activity was 4,480 client-visits. The clinic has provided the following data concerning the formulas used in its budgeting and its actual results for January: Data used in budgeting: Fixed element per month Variable element per client-visit Revenue - $ 36.50 Personnel expenses $ 28,500 $ 12.50 Medical supplies 1,400 6.50 Occupancy expenses 10,400 1.00 Administrative expenses 7,500 0.10 Total expenses $ 47,800 $ 20.10 Actual results for January: Revenue $ 129,000 Personnel expenses $ 70,010 Medical supplies $ 21,010 Occupancy expenses $ 13,180 Administrative expenses $ 7,430 The activity variance for net operating income in January would be closest to: Multiple Choice $328 F $328 U $8,630 U $8,630 F

Question 2

Scranton Motors Ltd faced the following situations.

•     The business has interest expense of $9,000 early in January 2017.
•     Interest revenue of $2,000 has been earned but not yet received.
•     When the business collected $12,000 in advance three months ago, the accountant debited

Cash and credited Unearned Revenue. The client was paying for two cars, one delivered in

December, the other to be delivered in February 2017.

•     Salary expense is $500 per day – Monday through Friday – and the business pays employees

each Friday. For example, purposes, assume that this year, December 31 falls on a Tuesday.

•     The unadjusted balance of the Supplies account is $2,100. The total cost of supplies on hand is

$800.

•     Equipment was purchased at the beginning of this year at a cost of $40,000. The equipment’s

useful life is four years. Record the depreciation for this year and then determine the equipment’s carrying amount.

1.    Journalize the adjusting entry needed at year end for each situation. Each scenario should be

considered independently.