Economics Answers

With the help of well-labeled diagrams, compare the long run equilibrium of a firm under a 

 perfectly competitive market structure and a monopoly market structure. [20 marks]

Suppose that money demand function is (M/P)^d=1,000-100r,where r is the interest rate in percent. The money supply M is 1,000 and the price level P is 2.A.     Assume that the price level is fixed. What happens to the equilibrium interest rate if the supply of money is raised from 1,000 to 1,200?

1. A new accountant just joined the company and needs your advice on the below transactions:

a) A loan of NGN15,000.00 granted to the customer on 10% interest. 

b) A loan loss write-off allowance of 2% to be made on every loan granted. 

Kindly advise her on the entries to pass in the book. 

2. What would be the treatment of IFRS 9 on receivables considering a company that core operation is granting loans to customers. 

Question Ltd is a fintech company that grants unsecured loans to an individual. 

Her capital formations are:

Equity (10,000 shares @NGN10/ share) NGN 10 million

Debt (Non-current) NGN15M 

Current Debt NGN2M

Below are the events that occurred in the year that just ended.

1. Profit recorded was NGN18M
2. Depreciation calculated was (Annual Allowance NGN650) NGN1,000
3. Provision for loan write off (Actual write-off of NGN3M included) NGN8M 
4. Gain on disposal of asset (selling price NGN8) NGN3
5. There was an adjustment to authorized share capital by 9,000 units in the year. This was allotted based on the initial holding by equity holders.
6. Non-current Debt has been for over 12 Months

a. What would be the net cash and cash equivalent of Question Ltd for the year ended?

b. What would likely be the tax payable for the assessable year?

on june 31, 2010 the statment of financial position of music Depot showed cash $11,000, accounts receivable $1,500 supplies $900, equipment $10,000 accounts payable $2600, during september, the following transactions occured . July 1 Lee chang made an additional investment in music Depot by depositing $2500 in music Depot,s cheeking account

on june 31, 2010 the statment of financial position of music Depot showed cash $11,000, accounts receivable $1,500 supplies $900, equipment $10,000 accounts payable $2600, during september, the following transactions occured . July 1 Lee chang made an additional investment in music Depot by depositing $2500 in music Depot,s cheeking account

1.     You are considering two cable networks for your television. Tata Sky charges Rs 120 per month regardless of the channels watched. Hathway on the other hand charges Rs 1/channel per month.                                Your monthly channel demand is given by the equation CD = 150-50P, where P is the price per channel.

A.    How many channels per month will you watch with each network?

 Based on consumer surplus obtained, which provider should you choose.

 Subsidies are inefficient since they lead to a deadweight loss. Do you agree? Use diagram to illustrate your answer

1.     Rahul purchases only 2 goods: ice cream and chocolates. If own price elasticity of demand for chocolates is 1, what is the cross price elasticity of demand for ice-cream. Show your calculation/reasoning.

If we observe more rice is purchased this year than last year, we may conclude that demand has increased and therefore price must have increased. Comment