A monopolist faces the following demand curve, marginal revenue curve, total cost curve and marginal cost curve for its product: Q= 200-2P MR=100-Q TC=5Q MC=5
a) Suppose that a tax of $5 for each unit produced is imposed by state government. What is the profit maximizing level of output?
b) Suppose that a tax of $5 for each unit produced is imposed by state government. What is the profit maximizing price?
c) Suppose that a tax of $5 for each unit produced is imposed by state government. How much profit does the monopolist earn?
In: Economics
Given the following demand and cost functions, answer the questions below. ??(?) = 150 − 3? ?(?) = 5? a) What is the perfectly competitive long-run equilibrium price and quantity? b) Suppose the market is served by a monopolist, what is the long-run equilibrium price and quantity? c) Graph the demand, marginal cost, and marginal revenue curves. Indicate the equilibrium price and quantity pairs under perfect competition and monopoly. d) What are consumer, producer, and total surplus under perfect competition? e) What are consumer, producer, and total surplus under monopoly? f) What is the size of the deadweight loss under monopoly?
In: Economics
How do you find the profit maximizing PRICE (not level of output) on a graph for a monopoly with demand, marginal revenue, marginal cost, and average total cost curves.
| Find the point where MR = MC and go straight over to the price axis. |
| Find the point where demand hits marginal cost and go straight over to the price axis. |
| Find the point where MR = MC, go straight up until you hit the demand curve, and then go straight over to the price axis. |
| Find the minimum point on the ATC curve and go straight over to the price axis. |
In: Economics
A monopolist is able to produce at a constant average total and marginal costs (ATC = MC = 5). The firm faces a market demand curve with the following equation P = 53 - Q.
*Determine the equation that gives the firm's marginal revenue curve.
*Determine the firm's profit-maximizing output level and the price that they would charge for their product. Determine the monopolist's profits.
*Determine the output level that would be produced within this firm under perfect competition. (P = MC at profit-maximizing (loss-minimizing) output level in a perfectly competitive firm.) Determine the profit that firms in a perfect competition would earn.
In: Economics
Giorgio Italian Market bought $8,200 worth of merchandise from Food Suppliers and signed a 90-day, 6% promissory note for the $8,200. Food Supplier's journal entry to record the collection on the maturity date is: (Use 360 days a year.)
Debit Cash $8,200; debit Interest Receivable $123; credit Sales $8,323
Debit Cash $8,323; credit Interest Revenue $123; credit Notes Receivable $8,200
Debit Cash $8,323; credit Notes Receivable $8,323
Debit Notes Receivable $8,200; credit Cash $8,200
Debit Notes Receivable $8,323; credit Sales $8,323
In: Accounting
A not-for-profit hospital signs a contract with an insurance company in which the company agrees to pay the hospital $9 million in capitation fees for the year July 1, 2017, through June 30, 2018. Between July 1, 2017 and December 31, 2017, the hospital provides services that, at its standard rates, would bill at $5.1 million. Between January 1, 2017, and June 30, 2018, it provides services that it would bill at $4.2 million. For the year ending December 31, 2017, the hospital should recognize capitation revenue of
Answer is $4.5 million. Show how to get this answer and explain
In: Accounting
The following accounts, among others, appeared on ZZ Company's balance
sheet at January 1, 2020 and December 31, 2020:
January 1, 2020 December 31, 2020
Accounts receivable 48,000 63,000
Utilities payable 20,000 26,000
Notes payable 71,000 80,000
Common stock 30,000 90,000
Retained earnings 22,000 78,000
The following information was taken from ZZ Company's 2020 income
statement:
Sales revenue $500,000
Cost of goods sold 280,000
Other expenses 120,000
Net income $100,000
Calculate the amount of cash collected from customers during 2020.In: Accounting
The following accounts, among others, appeared on ZZ Company's balance
sheet at January 1, 2020 and December 31, 2020:
January 1, 2020 December 31, 2020
Accounts receivable 48,000 63,000
Utilities payable 20,000 26,000
Notes payable 71,000 80,000
Common stock 30,000 90,000
Retained earnings 22,000 78,000
The following information was taken from ZZ Company's 2020 income
statement:
Sales revenue $500,000
Cost of goods sold 280,000
Other expenses 120,000
Net income $100,000
Calculate the amount of cash collected from customers during 2020.In: Accounting
Jet Company's summarized financial statement information for the beginning of the year is as follows:
Marketable Securities $50,000
All Other Assets $150,000
Total Liabilities $80,000
Total Stockholders' Equity $120,000
During the year, Jet had Revenue of $77,000, Expenses of $46,000 and paid cash dividends of $7,000. Marketable Securities increased in value by 16% , liabilities remained unchanged for the year and Jet had 15,000 shares outstanding all year. Calculate the information that Jet would report on its financial statements at the end of the year.
Net income =
Total assets =
Total liabilities =
Total equity =
Eps =
In: Accounting
Definition: Reporting liabilities on the balance sheet and computing debt to
equity ratio
The accounting records of Pack Leader Wireless include the following as of
December 31, 2018:
Accounts Payable $ 77,000 Salaries Payable $ 7,500
Mortgages Payable (long-term) 73,000 Bonds Payable (current portion) 25,000
Interest Payable 18,000 Premium on Bonds Payable 10,000
Bonds Payable (long-term) 63,000 Unearned Revenue (short-term) 2,700
Total Stockholders’ Equity 140,000
Requirements
2. Compute Pack Leader Wireless’s debt to equity ratio at December 31, 2018.
In: Accounting