The question applies the principles of demand, supply, and pricing in the context of two movie theaters - The Modern Multiplex and The Sticky Shoe. By understanding the relationship between price, demand, and the cost to serve each customer, we can analyze the probable outcomes of price regulations, like the imposition of a price floor, on the businesses.
The question pertains to the economic concept of demand curves and consumer behavior using two movie theaters as examples. The Modern Multiplex and the Sticky Shoe operate at different prices and attract different numbers of customers. The demand for movies at the multiplex is given by the equation qmm = 14 - pmm + pss, while the demand at Sticky Shoe is given by qss = 8 + 2pss - pmm. Here, 'q' represents the quantity of movies demanded and 'p' represents the respective price in dollars.
Given that Multiplex has higher expenses per customer at $4, their ticket prices would naturally be higher than Sticky Shoe, which has a lower cost per customer at $2. This translates to their demand equations; the negative sign in front of pmm in Multiplex's demand equation suggests that as prices increase, their demand decreases because more people start favoring Sticky Shoe. Similarly, the positive sign in front of pss in Sticky Shoe's demand equation indicates that as their prices decrease, more customers prefer it over Multiplex.
This problem demonstrates how price floors can create surpluses and shortages, leading to inefficiencies in the market. For instance, if a minimum price (price floor) is set above the equilibrium price, the quantity supplied at this higher price will exceed the quantity demanded, thus leading to a surplus. If not managed carefully, these surplus situations can indeed lead to losses and business closures, as shown in the movie theater example.
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Answer:
the answer is D Depreciation.
Explanation:
Depreciation is a non-cash expense. It represents the decrease in value of a long-term asset over time due to wear and tear, obsolescence, or other factors. While depreciation affects the value of an asset, it does not involve any cash outflow or payment.
To understand this concept, let's take an example. Suppose a company purchases a delivery truck for $50,000. Over time, the truck's value will decrease due to factors such as usage, age, and technological advancements. The company recognizes this decrease in value as an expense called depreciation. However, no actual cash is paid for depreciation; it is simply an accounting entry to reflect the decrease in the truck's value over time.
On the other hand, the other options listed are not non-cash expenses:
A. Cost of Goods Sold (COGS) represents the direct costs involved in producing goods or services and includes expenses like raw materials and direct labor. COGS typically involves cash outflows.
B. Salaries represent the compensation paid to employees for their work. Salaries are generally paid in cash.
C. Office Supplies refer to items used in day-to-day office operations, such as paper, pens, and ink. These supplies are usually purchased with cash.
E. Interest expense represents the cost of borrowing money. Interest expense involves cash outflows as interest payments are made to lenders.
In conclusion, depreciation is the non-cash expense among the options listed. It reflects the decrease in value of long-term assets over time but does not involve any cash outflow or payment.
Option D
Depreciation is a non-cash expense that represents the reduction in value of an asset over time due to wear and tear or obsolescence.
The correct answer is D. Depreciation.
Depreciation is a non-cash expense because it represents the reduction in value of an asset over time due to normal wear and tear, obsolescence, or other factors.
It is recorded as an expense on the income statement, but does not involve any actual cash outflow.
For example, if a company purchases a machine for $10,000 and expects it to have a useful life of 5 years, the company would record a depreciation expense of $2,000 per year ($10,000/5) on the income statement, even if they did not actually spend any cash each year.
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b. the contract is discharged.
c. Discount must compensate Contractors for its lost profit.
d. Contractorsis in breach of contract.
Answer:
In this situation:
c. Discount must compensate Contractors for its lost profit.
Explanation:
Answer:
Yes he needs a license
Explanation:
Based on the scenario being described within the question it can be said that in this situation Joe would need a licence. He mainly needs a license because he wants to list the property, not just appraise it. Which by law requires a real estate licence, and practice in this field without a license would either be considered a misdemeanor or felony offense depending on the
Business can improve the quality life of others through corporate social activities that minister to less fortunate people and finding environment-friendly activities to promote sustainability and life. There is a bakery that hires only homeless people. They bake to hire people. Some hire single mothers. Some companies promote their corporate social responsibilities through tree planting, community service, fund raising acitivities for endangered animals and feeding program for those street children.