Answer the Question on the Basis of the Following Demand

question 183

Multiple Choice

Answer the question on the basis of the following demand and cost data for a specific firm. Suppose that entry of firms into the industry changes this firm's demand schedule from columns 1 and 3 to columns 2 and 3. Maximum economic profit will

• A)decrease to $25.
• B)decrease to $35.
• C)decrease to $70.
• D)decrease to zero.

Comprehend how different types of transactions affect owner's equity.

Recognize how transactions impact liability accounts.

Understand the principle of double-entry bookkeeping.

Learn how expense accounts are affected by transactions.

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Definitions:

Consideration

Something of value given by both parties to a contract that induces them to enter into the agreement to exchange mutual performances.

Quantum Meruit

A legal principle meaning "as much as he has deserved," allowing a person to recover reasonable compensation for services or goods provided when no contract exists, or where a contract exists but precise amounts are not specified.

Relied Promise

This term does not correspond to standard legal or contractual terminology and may not be a real key term. NO.

Quantum Meruit

A Latin phrase meaning “what one has earned,” used in law to determine the amount to be paid for services rendered when no contract exists or when a contract is unenforceable.