The average fixed cost curve a. always declines with increased levels of output. b. always rises with increased levels of output. c. declines as long as it is above marginal cost. d. declines as long as it is below marginal cost.

Answers

Answer 1
Answer:

Answer: a. always declines with increased levels of output.

Explanation: the average fixed cost curve graphically illustrates or shows the relation between average fixed cost a firm incurs in the short-run production of a good or service, and the quantity produced. The average fixed cost curve always declines with increases in the level of output resulting in a negatively sloped curve. This is to say that the average fixed cost is relatively high at smaller quantities of output, which then declines as the level of production increases--the more output increases, the more average fixed cost declines. Why this occurs is that a given fixed cost is spread over an increasingly larger quantity of output and as such, firms can profitably charge a lower price with increased output.


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In 2005, ABC Company issued $100,000 of 20-year bonds at face value. Ten years later, in 2015, the company retired the bonds early by purchasing them in the open market at $101,000. The entry to record this transaction includes a:

Answers

Answer:

b. debit to Loss on Bond Retirement of $1,000.

Explanation:

Options are "A.  credit to Gain on Bond Retirement of $1,000.  B.  debit to Loss on Bond Retirement of $1,000.  C.  debit to Bonds Payable of $101,000.  D.  credit to Cash of $100,000."

When a bond is retired before maturity a gain or loss may arise. In such case if the price paid to retire the bonds is greater the carrying amount of bonds then the company need to record a loss on retirement in the book. On the other hand if the price paid is less than the carrying amount of the bonds at retirement, then the company records a gain on retirement of bonds.

Tyrone and Akira, who are married, incurred and paid the following amounts of interest during 2019: Home acquisition debt interest $ 15,000
Credit card interest 5,000
Home equity loan interest (used for home improvement) 6,500
Investment interest expense 10,000
Required: With 2019 net investment income of $2,000, calculate the amount of their allowable deduction for investment interest expense and their total deduction for allowable interest. Home acquisition principal, and the home equity loan principal combined are less than $750,000.

Answers

Answer:

The Investment Interest (limited to Investment income) = $2,000

Allowance deduction for Interest

Investment interest                        $2,000

Home acquisition debt interest    $15,000

Home equity loan interest             $6,500

                                                        $23,500 - Before phase out limits

Final answer:

In 2019, Tyrone and Akira can deduct $21,500 in home and home equity loan interest, and $2,000 of their investment interest, which adds up to a total deductible interest amount of $23,500.

Explanation:

In 2019, Tyrone and Akira can deduct the Home acquisition debt interest, Home equity loan interest (given it was for home improvements), and Investment interest expense to an extent.

Their Home acquisition debt interest and Home equity loan interest are fully deductible, giving them a total of $21,500 ($15,000 + $6,500) in deductible interest. The credit card interest is non-deductible.

As for the Investment interest expense, it can only be deducted up to the level of their net investment income. Therefore, of their $10,000 investment interest expense, only the $2,000 that corresponds to their net investment income is deductible in 2019. Any leftover deductible interest may be carried over to the next year.

So in total, they can deduct $23,500 ($21,500 + $2,000) in interest in 2019.

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True or False: In most cases, the only way publishers of media websites generate revenue is by charging advertisers to display ads on their sites.

Answers

Based on internet and website analysis, it is false that the only way publishers of media websites generate revenue is by charging advertisers to display ads on their sites.

How do websites generate revenue?

Websites generate revenue in many ways, which include the following:

  • Display Advertisement
  • Subscription and Membership
  • Sponsored Contents
  • Events
  • Affiliate Marketing
  • Digital Marketing, etc.

Hence, in this case, it is concluded that the correct answer is False.

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Final answer:

The statement is false. Publishers of media websites generate revenue not only through advertising but also from digital subscriptions, pay per view on premium content, and other diversified income streams.

Explanation:

The statement is false: the only way publishers of media websites generate revenue is not only by charging advertisers to display ads on their sites. While advertising is certainly a significant source of revenue, it is not the only one. Many publishers have diversified their income streams to include options such as digital subscriptions or pay per view for premium content.

For instance, let’s consider the decline in advertising revenues for print media, which dropped from $46 billion in 2012 to just $20.5 billion in 2020. In response to this shift, many publishers have enhanced their online presence as the number of people looking for news and entertainment online has increased. Even though advertising revenues have dipped, digital subscriptions allow news outlets to stay financially viable.

Digital paywalls where readers have to purchase online subscriptions to access specific content, are another way of generating income. Websites like Politico.com, Daily Kos, and even established newspapers like The New York Times have capitalized on this strategy. The availability and ease of online publication have enabled more niche media outlets to form and compete in the digital media market.

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The transactions of Spade Company appear below. (a) Kacy Spade, owner, invested $100,750 cash in the company in exchange for common stock.(b) The company purchased office supplies for $1,250 cash.(c) The company purchased $10,050 of office equipment on credit.(d) The company received $15,500 cash as fees for services provided to a customer.(e) The company paid $10,050 cash to settle the payable for the office equipment purchased in transaction (f) The company billed a customer $2,700 as fees for services provided.(g) The company paid $1,225 cash for the monthly rent.(h) The company collected $1,125 cash as partial payment for the account receivable created in transaction (i) The company paid $10,000 cash in dividends to the owner (sole shareholder). Check Cash ending balance, $94,850 Prepare the Trial Balance

Answers

Answer:

Explanation:

Journal entry

a. Dr Cash 100750

               Cr Capital- Kacy spade 100750

(Investment in company)

b. Dr Office supplies 1250

                          Cr Cash     1250

(to purchase office supplies on cash)

c. Dr Office equipment 10050

                   Cr Accounts payable  10050

( To record purchase of office equipment)

d. Dr Cash  15500

                       Cr Service fee income   15500

     ( To record service provided to customer)

e. Dr Accounts payable  10050

                   Cr Cash                   10050

( To record payment of office equipment purchase)

f. Dr  Account receivable  2700

                           Cr Service revenue    2700

(To record service revenue)

g. Dr Rent expense 1225

                 Cr Cash           1225

( To record rent expense on cash)

h. Dr Cash 1125

              Dr Account receivable 1125

         ( To record  partial collection of receivable )

i. 1) Dr Retained earning  10000

                             Cr Dividend payable   10000

( To record dividend yet to be to shareholder )

 2.) Dr Dividend payable   10000

              Cr    cash                       10000      

 ( To record  Payment of cash dividend)

  Cash                                                                     capital-kacy spade

Dr____________Cr___                                     ___ DR ___________Cr

100750  ---  1250                                                                    --100750

15500 ---10050

           ---1225

1125-- 10000

Office supplies                                                             Office equipment

Dr ____________Cr__                                           __ Dr _____________Cr

1250--                                                                       10050---

Accounts payable                                                       Service fee income

Dr_____________Cr_                                               __ Dr ___________Cr_

   10050       ---- 10050                                                                   ---- 10050

                                                                                                    ---2700

Service revenue                                                            Account receivable

Dr_____________Cr__                                          _ Dr ______________Cr

                --                                                                    2700----1125

rent expense                                                             retained earning

Dr____________Cr__                                              _ Dr __________Cr__  

1225--                                                                        10000 ---- 10000

Dividend payable

Dr_______________Cr  

10000 --- 10000

Trial Balance

Cash       94850                                      100750     Capital-Kacy spade

Salary expense                                                

Rent expense  1225                                                  Account payable

Office Equipment  10050                                    Retained earning

Prepaid insurance                                          12750  Service revenue

office supplies  1250                                                   Dividend payable

Account receivable  1575

total 108950 =  108950

Investing in stocks is like gambling when:a. both have a short time horizon

b. both involve risk

c. both involve an initial outflow of cash

d. both result in long-term loses.

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If so maybe see hope help

Two firms, A and B, each currently dump 50 tonnes of chemicals into the local river. From now on both firms will require a pollution permit for each tonne of pollution dumped into the river. The government gives each firm 20 tonnes’ worth of pollution permits, which it can either use or sell to the other firm. It costs Firm A $100 for each tonne of pollution that it eliminates before it reaches the river, and it costs Firm B $50 for each tonne of pollution that it eliminates before it reaches the river. What is likely to happen?

Answers

Answer:

10 fewer tons of pollution into the river and Firm B will dump 50 fewer tons of pollution into the river.

Explanation:

Firm B will SELL ALL of its allotted 20 permits, and clean up all of its 50 units of pollution. The price per permit will be above $50 each. Firm A will BUY ALL 20 of B's permits. It will then dump 40 tons into the water, and will clean up its remaining 10. The price it pays for a permit will be under $100.

Answer:

Firm B will sell all its permits to Firm A  i.e ( lesser chemical dumps into the river )

Explanation:

Firm B will rather sell all its 20 tonnes worth of pollution permit to firm A because it would cause Firm B lesser than Firm A when they dispose off their wastes before it gets to the River hence they will rather dispose off their waste rather than paying/purchasing pollution permits while

Firm A will buy out all of Firm B's allotted pollution permits to reduce the number of tonnes they would dispose off before getting to the river. this is because it would cause them more when they dispose off their waste before getting it to the river. hence the End product of the whole arrangement will be  Chemical dumps into the River will be reduced drastically to 40 overall instead of 100 due to the cost of dumping permits.