Consider a monopoly with inverse demand curve P(q) = 20 – 24 and marginal costs MC(q) = 4 + 49 (a) What is the optimal quantity and price for the monopolist? What is the socially optimal quantity?
(b) Calculate the deadweight loss and reduction in consumer surplus due to monopoly distortions.
(c) Assume now that Congress is debating regulating this monopolistic industry to elim- inate monopoly distortions. Some economists object that setting up a regulatory apparatus is costly in terms of salaries of regulators and other administrative costs. Let F denote this cost. What is the maximal value FMAX such that for F > FMAX it is no longer optimal to set up this regulatory apparatus?

Identify which of the twelve basic functions listed below fit the description given.

How is the division of labor accomplished?

Presented below is a list of possible transactions. analyze the effect of the 18 transactions on the financial statement categories indicated. transactions assets liabilities owners’ equity net income 1. purchased inventory for $80,000 on account (assume perpetual system is used). 2. issued an $80,000 note payable in payment on account (see item 1 above). 3. recorded accrued interest on the note from item 2 above. 4. borrowed $100,000 from the bank by signing a 6-month, $112,000, zero-interest-bearing note. 5. recognized 4 months’ interest expense on the note from item 4 above. 6. recorded cash sales of $75,260, which includes 6% sales tax. 7. recorded wage expense of $35,000. the cash paid was $25,000; the difference was due to various amounts withheld. 8. recorded employer’s payroll taxes. 9. accrued accumulated vacation pay. 10. recorded an asset retirement obligation. 11. recorded bonuses due to employees. 12. recorded a contingent loss on a lawsuit that the company will probably lose. 13. accrued warranty expense (assume expense warranty approach). 14. paid warranty costs that were accrued in item 13 above. 15. recorded sales of product and related service-type warranties. 16. paid warranty costs under contracts from item 15 above. 17. recognized warranty revenue (see item 15 above). 18. recorded estimated liability for premium claims outstanding.