After Several Years of Business, Abel, Barney, and Cole Are

question 72

Essay

After several years of business, Abel, Barney, and Cole are liquidating. The following are post-closing account balances. Non-cash assets are sold for $305,000. Profits and losses are shared equally.
After all liabilities are paid, divide the remaining cash amongst the partners.

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Definitions:

Marginal Cost

The extra financial burden of manufacturing one more unit of a product or service.

Natural Monopolies

A situation where a single firm can supply a product or service to an entire market at a lower cost than two or more firms, making competition impractical.

Diseconomies of Scale

A situation in which a company or business grows so large that the costs per unit increase.

Long-run ATC

Long-run Average Total Cost refers to the per-unit cost of production in the long term where all inputs are considered variable.