CellBat and DuraBat Are the Only Makers of Lawn Mower

question 25

Multiple Choice

CellBat and DuraBat are the only makers of lawn mower batteries. Their batteries are identical, produced at a constant marginal cost of $25. The market inverse demand curve for lawn mower batteries is P = 145 - 0.5Q, where Q is the total output produced by CellBat and DuraBat, q_C + q_D. How many batteries will each firm produce in Cournot equilibrium?

• A) CellBat and DuraBat will each produce 60 batteries.
• B) CellBat will produce 40 batteries, and DuraBat will produce 80 batteries.
• C) CellBat and DuraBat will each produce 80 batteries.
• D) CellBat and DuraBat will each produce 30 batteries.

Recognize the tax treatment of losses from the destruction or theft of business property.

Comprehend the filing requirements and forms related to self-employment and the tax implications thereof.

Analyze business use of the home and automobile for tax purposes, including deductions and limitations.

Understand the principles of Path-Goal Theory and its application to leadership styles.

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Definitions:

Provision

An amount set aside in the accounts of a company to cover a future liability or decrease in the value of an asset.

Accounts Receivable

Liabilities of customers to a firm for provisions or merchandise that have been delivered but payment is outstanding.

Capital Balance

The amount recorded in a shareholder's or partner's equity account, reflecting their investment in the business.

Full Time

Employment status characterized by working a minimum number of hours defined by the employer, typically involving benefits not offered to part-time employees.