1. Consider a tax on the producers in a market. By using supply and demand curves, show the consumer surplus, producer surplus, the equilibrium price and quantity traded before tax. Now show the consumer surplus, producer surplus, equilibrium price and quantity traded after tax.
2. Finally make sure to show the revenue of the tax and the deadweight loss associated with the tax. Now do the same exercise in part-c by assuming a tax on consumers.
3. What happens to consumer surplus, producer surplus, equilibrium price and quantity traded after tax?

The following income statement is for X Company's two products, A and B:

If X Company drops Product B because it shows a loss and is able to use the vacant space to increase sales of Product A by $26,200, with $5,000 of additional fixed costs, what will be the effect on firm profits?

The year-end adjusted trial balance of the Corporation included the following account balances:

Prepare the closing entries.

34. $________   In preparing the closing entries for the temporary accounts, how much should Retained earnings be credited?

35. $________   In preparing the closing entries for the temporary accounts, how much should Retained earnings be debited?

36. $_________ After closing the accounts, what is the ending balance in Retained Earnings?

Consider a world with two countries - USA and Foreign and a competitive market of sugar in both countries.

Foreign is more efficient in the production of sugar and in a free trade equilibrium, US would

import part of its consumption of sugar. Describe graphically such trading equilibrium of sugar.

What would be the effect on the sugar price in USA and on the welfare (measured by consumer surplus, producer surplus and tariff revenue) of US when US imposes an import tariff on sugar? Argue using a graph taking into consideration that

US is a large sugar importing country.

For the four unrelated situations, A-D, calculate the unknown amounts indicated by the letters appearing in each column:

Pam Jones owns a business named Sunny Renovation. Below is the account information of Sunny Renovation at 30 June 2019.

  
Required:
Using the accounting equation, prepare the balance sheet for Sunny Renovation at 30 June 2019 (please use the narrative/vertical format).

Suppose the demand equation facing a firm is Q = 1000 – 5P, MR = 200 – 0.4 Q, and MC = $20.

1. Compute the maximum profit the firm can earn.
2. Suppose the firm is considering a quantity discount. It offers the first 400 units at a price of $120, and further units at a price of $80. How many units will the consumer buy in total?
3. Compute the profit if the quantity discount is implemented.
4. If the firm implemented a two-part pricing strategy, what would be the fixed fee, variable fee, total revenue, and the total variable cost?

Suppose the demand equation facing a firm is Q = 1000 – 5P, MR = 200 – 0.4 Q, and MC = $20.

1. Compute the maximum profit the firm can earn.
2. Suppose the firm is considering a quantity discount. It offers the first 400 units at a price of $120, and further units at a price of $80. How many units will the consumer buy in total?
3. Compute the profit if the quantity discount is implemented.
4. If the firm implemented a two-part pricing strategy, what would be the fixed fee, variable fee, total revenue, and the total variable cost?

A certain competitive firm sells its output for $10 per unit. The 200th unit of output that the firm produces has a marginal cost of $11. Which of the following is not necessarily true?

Select one: a. Production of the 200th unit of output increases the firm's total revenue by $10.

b. Production of the 200th unit of output increases the firm's variable cost by $11.

c. Production of the 200th unit of output increases the firm's total cost by $11.

d. Production of the 200th unit of output increases the firm's average variable cost.