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The partners share profits and losses in the ratio of 4:2:4. On July 1, 2010, Diaz asked to be allowed to withdraw from the partnership. The partners decided to close the books as of these date so as to determine the capital interest of Diaz. Profit for 6 months ended amounted P60,000 while drawings of Dy, David and Diaz amount to P6,000 , P8,000 and P4,000, respectively. Profits and losses are to be shared equally after the retirement of Diaz.
1. What are the journal entries to be prepared for the retirement of Diaz?
3. Assumption: If Diaz decided to sale his interest to Taki for P150,000.00 what is the journal entry for the sale of interest?
4. Assuming the Sale of interest to the continuing partners. Diaz sold his interest to Dy and David for P90,000; the interest being divided equally by the remaining partners. Profits and losses after the retirement of Diaz will be divided equally, what is the journal entry for the sale of interest?
A monopolist operates under two plants, 1 and 2. The marginal costs of the two plantsare given by MC1 = 20 + 2q1 and MC2= 10 + 5q2 where q1 and q2 represent units of output produced by plant 1 and 2 respectively. If the price of this product is given by 20 –3(q1 + q2), how much should the firm plan to produce in each plant, and at what price should it plan to sell the product?
If the government were to intervene in this market by taxing suppliers, what would happen to prices in the short run and in the long run?
Select one market to focus on. Clearly indicate the market and describe the market structure. For example, is it perfectly competitive? Is an oligopoly market? And so on.
• You are free to select any market of your choosing. For example, the global market for copper, the market for housing in London, the market for cheese in the United States, etc… You will have more to talk about for some markets than for others, and you must ensure you can find the appropriate price data.
What is an oligopoly? In oligopoly markets, how do businesses make decisions?
Explain intuitively why marginal revenue is less than the price for a monopolist, but marginal revenue is equal to the price for a perfectly competitive firm
Discuss 2 determinants each of the price elasticity of demand and the price elasticity of supply
For lunch, Wendy eats only salads or fruit & yogurt smoothies. Her weekly food budget is $100. Each salad costs $5 and each smoothie costs $10.
a. Draw Wendy’s budget constraint.
b. What is the opportunity cost of purchasing one more smoothie? What is the opportunity cost of purchasing one more salad?
c. If the price of smoothies doubles to $20, what happens to Wendy’s opportunity set?
d. Describe intuitively how Wendy should make the optimal consumption decision.
The college graduates of 2000 could hardly have asked for better luck. The unemployment rate lowered to 4.1% in May 2000 roughly the lowest level in a generation and employers were literally dying for new hires.Set up salaries rose many graduating seniors had many job offers and some firms even offered $10000- $20000 bonuses to students who signed the dotted line. 3 years later the job market for the Class of 2003 was rather different US economic growth had slowed to a crawl and then to a halt. Firms that had stocked up on recent college grads in the tighter labour markets of 1998-2000 found themselves with more than they knew what to do with in 2002 and 2003.They weren’t eager to hire more. Bonuses and other perks died job offers became thinner With the unemployment rate around 6% in May and June of 2003, the job market was far from the worst ever. But it was nothing like the glory days of 2000. Examine 2 fiscal policies and 2 monetary policies that the US government may have used to correct this situation.
Wheat and oats are used to make different types of breakfast cereal and both are grown on the prairies. Use appropriate diagrams in your answers.
a. What would happen to the supply and demand of oats if the price of wheat were to fall? What happens to the equilibrium price and quantity of oats?
b. What would happen to the equilibrium price of wheat and oats if there was a drought in the prairies?
