# In long-run competitive equilibrium SRATC = LRATC, because if SRATC > LRATC (at the quantity of output at which MR = MC) firms would _______.A. have an incentive to change their plant size to produce their current output.B. not be covering their total fixed costs.C. not be covering their total variable costs.D. a and b b and c

In long-run competitive equilibrium SRATC = LRATC, because if SRATC > LRATC (at the quantity of output at which MR = MC) firms would have an incentive to change their plant size to produce their current output.

Option: A

Explanation:

In perfect competition, balance is the stage where consumer demands are equal to market supply. In the short term demand can impact stability. In the long run both a product's demand and supply would influence the balance in perfect competition.

The increase in the quantity of output generated is the SRTC i.e short-run total cost and LRTC i.e long-run total cost scales because generating more output needs more labor utilization for both the short and long runs, and since, in the long run, generating more output implies using more of the physical resource supply; and by using more of either supply means incurring more production costs.

## Related Questions

Corny and Sweet grows and sells sweet corn at its roadside produce stand. The selling price per dozen is \$4.75, variable costs are \$2.00 per dozen, and total fixed costs are \$1100.00. How many dozens of ears of corn must Corny and Sweet sell to breakeven? (Round your final answer to the nearest unit amount.)

Selling price = \$4.75

Variable costs= \$2.00

Contribution margin ratio = contribution margin / sale

= (\$4.75 - \$2.00) / \$4.75 = 57.8%

Break even sale in dollars = fixed costs / contribution margin ratio

= \$1100 / 57.8% = \$1903

Breakeven Sales = \$1903

Explanation:

A project with an initial cost of \$51,400 is expected to generate annual cash flows of \$16,910 for the next 5 years. What is the project's internal rate of return

19.27%

Explanation:

Internal rate of return is the discount rate that equates the after tax cash flows from an investment to the amount invested

IRR can be calculated with a financial calculator

Cash flow in year 0 =  \$-51,400

Cash flow each year from year 1 to 5 = \$16,910

IRR = 19.27%

To find the IRR using a financial calculator:

1. Input the cash flow values by pressing the CF button. After inputting the value, press enter and the arrow facing a downward direction.

2. After inputting all the cash flows, press the IRR button and then press the compute button.

On January 1, 2021 M.T. Glass purchased the following investments: 1. 7,500 shares (representing 15%) of ZZ Company stock for \$98,000 2. 25,000 shares (representing 40%) of AA Company stock for \$440,000 M.T. Glass recorded the sale of some of its investments in 2022 as follows: 1. September 1 sold 5,000 shares of the ZZ Company stock for \$76,000 2. December 31 sold 4,000 shares of the AA Company stock for \$120,000 AA Company and ZZ Company reported the following information for the years 2021 and 2022: AA Company ZZ Company Net income in 2021 \$260,000 \$200,000 Dividends paid to M.T. Glass in 2021 \$24,000 \$15,000 Market value at Dec 31, 2021 \$27 per share \$22 per share Net income in 2022 \$160,000 \$225,000 Dividends paid to M.T. Glass in 2022 \$41,000 \$5,000 Market value at Dec 31, 2022 \$24 per share \$28 per share Calculate the amount of the realized gain reported in M.T. Glass' 2022 income statement resulting from the sale of the AA Company stock.

\$15000

Explanation:

If the investor the outstanding shares of the other company which is less than 20% then we can report the unrealized gains or losses in the income statement. The unrealized gain can be calculated as follows:

check the attachment below

Centurion Alarms recently declared a 10 percent stock dividend. Prior to the stock dividend, the equity section on Centurion's balance sheet was: ​ Common stock (100,000 shares outstanding, \$1 par value) \$100,000 Additional paid-in capital 60,000 Retained earnings 90,000 Total common shareholders' equity \$250,000 ​ Centurion's stock currently sells for \$4 per share. After the stock dividend is paid, the amount in the Common stock account should be _______ and the amount in the Retained earnings account should be ______. \$110,000; \$50,000 \$100,000; \$90,000 \$140,000; \$50,000 \$100,000; \$50,000 \$90,000; \$110,000

I believe the answer would be \$110,000; \$50,000

On January 1, 2021, Tropical Paradise borrows \$46,000 by agreeing to a 6%, five-year note with the bank. The funds will be used to purchase a new BMW convertible for use in promoting resort properties to potential customers. Loan payments of \$889.31 are due at the end of each month with the first installment due on January 31, 2021. Required:
Record the issuance of the installment note payable and the first two monthly payments.

Issuance: Installment Note Payable \$46,000; First two payments: Interest Expense \$230.00, Installment Note Payable \$659.31 each month.

On January 1, 2021, Tropical Paradise records the issuance of a 6%, five-year installment note payable with a principal amount of \$46,000. This note is obtained from the bank to finance the purchase of a BMW convertible for promotional purposes related to resort properties. The terms of the loan stipulate monthly payments of \$889.31, with the first installment due on January 31, 2021.

For the first two monthly payments:

1. The Interest Expense is calculated based on the outstanding balance of the loan and the interest rate. In the first month, the interest is \$46,000 * 6% / 12 = \$230.00.

2. The remaining amount of the monthly payment is applied to reduce the principal, recorded as a repayment of the Installment Note Payable. The principal repayment is \$889.31 - \$230.00 = \$659.31.

This process repeats in the second month, with the interest recalculated based on the remaining balance, and the remaining amount again applied to reduce the principal. These entries reflect the gradual repayment of both interest and principal over the life of the loan.

For more questions on Issuance

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Journal entry

Explanation:

The Journal entry is shown below:-

1. Cash Dr,                                            \$46,000

To Notes payable                                         \$46,000

(Being issuance of notes is recorded)

2. Interest expense Dr,                     \$230

Notes payable Dr,                              \$659.31

To Cash                                                   \$889.31

(Being payment of first installment is recorded)

3. Interest expense Dr,                   \$226.70

Notes payable Dr,                           \$662.61

To Cash                                                  \$889.31

Working note :-

First installment interest expenses

= \$46,000 × 6% × 1 month ÷ 12 month

= \$230

Second installment interest expenses

= (\$46,000 - \$659.31) × 6% × 1 month ÷ 12 month

= \$45,340.68 × 6% × 1 ÷ 12

= \$226.70

In the month of June, a department had 8000 units in beginning work in process that were 70% complete. During June, 32000 units were transferred into production from another department. At the end of June there were 4000 units in ending work in process that were 40% complete. Materials are added at the beginning of the process, while conversion costs are incurred uniformly throughout the process (Please show work)A. How many units were transfered out of the process in june________B.The equivalent units of production for materials in June were _______C. The equivalent units of production for conversion costs for June were_______

A. 36,000 units

B. 40,000 units

C. 32,800 units.

Explanation:

A. To calculate units transferred out we add beginning work in process to units transferred during the period and subtract the ending work in process units.

8,000 + 32,000 - 4,000 = 36,000

Units transferred out of process in June = 36,000

B. The equivalent units of production for materials will be ;

8,000 + 32,000 = 40,000.

C. The equivalent units of production for Conversion costs will be:

(8000 * 30%) + 32000 - (4000 * 40%) = 32,800.