Other Economics Answers

Why is price discrimination not possible under perfect market conditions

Why is price discrimination not possible under perfect market conditions

Discuss the merits of a proposal that the government should impose a tax

or subsidy where a non-renewable resource is supplied monopolistically

in order to increase the social net benefit

which market structure does denel operate in

Journalize each of the transactions below.

Dec. 25 Miss Ryce made a cash lodgement of $300,000 to the bank.

Dec. 27 Miss Ryce paid cheques to Mr. Xinghu Chung for $250,000, receiving a 2% discount, and to Cherry’s Wholesale Hair Supplies for $100,000, receiving a 2% discount.

Dec. 29 After almost a month in business, Miss Ryce felt like she wanted to treat herself to a weekend at the Secrets Wild Hotel in Montego. She withdrew $30,000 cash from the business to supplement her personal expenses.

Dec. 31 All other customers who had taken goods on account on March 8, 2021, cleared their outstanding balances, by paying with a cheque.

You are the manager of a monopoly firm with (inverse) demand given by P = 50 − 0.5Q. Your firm's cost function is C = 40 + 5Q2. Your firm's marginal revenue is:

Multiple Choice

P = 50 − 0.5Q.

P = 50 − Q.

There is insufficient information to determine the firm's marginal revenue.

P = 100 − Q.

Consider four mutually exclusive alternatives, each having an 8-year

useful life: If the minimum attractive rate of return is 8%, which

alternative should be selected (use IRR incremental)?

A B C D

First cost $1500 $100 $900 $500

Annual Benefit $122 $120 $97 $122

Salvage value $750 $500 $500

23. The estimated cash flow for each alternative of mutually exclusives

alternative with MARR of 20% are as follows: Use the incremental

analysis of IRR method to make a recommendation.

Alternatives M1 M2 M3

Initial Cost $42,000 82,000 60,000

Annual Benefit $35,000 40,000 48,000

Annual operating cost $23,000 25,000 32,000

Salvage value $8,000 15,000 16,500

Useful Life 8 years 8 years 8 years

Rate of Return 25% 22.50% 23.80%

Jazz Corporation is owned by three shareholders, Ms. Socks, Mr. Gizmo & Mr. Fore. The company has just completed it's first year of operations on May 31, 2021 and the partners are trying to decide how to calculate depreciation on the the delivery vehicle they purchased during the year.

On December 1, 2020 Jazz Corporation purchased a delivery truck for $36,000. The shareholders' estimate the useful life of the vehicle is 5 years or 125,000 km & that they will be able to sell it for $6,000 at the end of it's useful life.

The shareholder's can't agree on which method of depreciation to use - Socks wants to use straight line, Gizmo wants to use double-declining balance & Fore wants to use units-of production. They have come to you for some assistance

The vehicle was driven 12,000 km in the first year of operations.

Required:

1. Applying the half-year rule calculate depreciation for the year ended May 31, 2021 using

a- the straight line method

b-the double-declining balance method

C

ACCOUNTING

Shelly Ryce was employed at Tele Company for 10 years. In recent times, Shelly was made redundant & as a part of her redundancy payment package, she received $2,000,000. Shelly has always loved wearing different hair extensions, & realizing how lucrative the hair business. She decided that she wants to start a hair supplies store, called “Shelly Hair.” Shelly started operations on May 1, 2021, & has been advised that even though it is a small business, it is important to keep proper accounting records.

The following transactions:

May 18 - Miss Ryce paid her cashier a cheque of $15,000 for her fortnightly salary.

1. Journalize & post adjusting entries, using the following information:

• The cashier complained that she was short-paid $2,500. Investigations revealed that she was in fact short-paid for the month of May 2021.
• The insurance for "Shelly Hair" was due & payable by May 1. The annual premium is $72,000 & the expense is incurred on a pro-rata basis.