Short and Long Run Economic Profits Essay

Your initial post should be 75-150 words in length. A profit-maximizing price searcher will expand output as long as marginal revenue either exceeds or is equal to marginal cost, lowering its price or raising its price until the midpoint of their demand curve and highest total revenues are achieved. Why are oligopolies able to earn both short-run economic profits and long-run economic profits, while price taking firms like perfect competitors can only earn short-run economic profits?Review the characteristics of perfect competition and imperfect competition (monopolistic competition, oligopoly, and monopoly). Barriers to entry don’t exist for perfect competition, but barriers to entry exist for imperfect competition. What are the implications of barriers to entry to the firm and competition? Review consumer surplus and producer surplus; what happens to consumer surplus is price is above equilibrium, or in this case above normal profits? Please provide original work. No plagiarizing.Lecture is below: In Week #5: Price Takers versus Price Searchers, we discussed that markets are most efficient and equitable when perfectly competitive. It was also noted that how competitive a market is determines how much market pricing power firms in aggregate enjoy, as well as the price elasticity of the individual firm’s demand curve. When we assess markets, we base efficiency and equity upon whether it’s a market comprised of price takers or price searchers. Price takers are firms who have no market pricing power, no product differentiation from other competitors, and the market is perfectly competitive and efficient and equitable. Price searchers, on the other hand, are firms who have at least some market pricing power, at least some product differentiation from other competitors, and the market is imperfectly competitive leading to losses in efficiency and equity.So, let’s talk about price searchers now. Price searching firms are also imperfectly competitive. Firms who produce goods with at least some product differentiation can to a certain amount affect market price. are three types of imperfect competitors: monopolistically competitive, oligopoly, and monopoly. With monopolistically competitive, like the perfectly competitive firm, there are many producers, only short-run economic profits can be attained, and products produced are very similar but do have some relative differentiation. Oligopolies and monopolies, on the other hand, have high barriers to entry, and although for oligopolies there is product differentiation but similar products from competitors, there are too few competitors due to high barriers to entry to deny the oligopolies long-run economic profits.For the monopolistically competitive market structure, supply and demand determine market equilibrium and allocation of resources. Individual firms do have their own demand curve, and the market demand curve is made up by adding up all the firms’ demand curves. The demand curve for the individual firm will have some downward slope, and there will be a separate downward-sloping marginal revenue curve. The optimal point where monopolistically competitive firms produce is where marginal costs equal marginal revenues, and then price is set from that point up on the X-axis (horizontal axis) until it meets the demand curve. Any price in the short run above the competitive price (perfectly competitive) where marginal costs equal marginal revenues will result in economic profits; due to a lack of barriers to entry, new firms will enter, shifting the demand curves of individual firms in the market leftward, pulling price down to the ATC (average total cost curve) back to equilibrium, thus eliminating economic profits in the long run and normal profits existing thereafter.In summary, we have four market structures, with perfectly competitive being the benchmark from which efficiency and equity are found. The other three market structures – monopolistically competitive, oligopoly, and monopoly – are not fully efficient and equitable. Oligopoly and monopoly are the least competitive market structures in which long-run economic profits are present due to a downward-sloping demand curve and high barriers to entry, while monopolistically competitive has a downward sloping demand curve but low barriers to entry (low product differentiation) with no long-run economic profits.In Week #6: Economic Profits versus Normal Profits, we discussed that markets are most efficient and equitable when perfectly competitive. It was also noted that how competitive a market is determines how much market pricing power firms in aggregate enjoy, as well as the price elasticity of the individual firm’s demand curve. When we assess markets, we base efficiency and equity upon whether it’s a market comprised of price takers or price searchers. Price takers are firms who have no market pricing power, no product differentiation from other competitors, and the market is perfectly competitive and efficient and equitable. Price searchers, on the other hand, are firms who have at least some market pricing power, at least some product differentiation from other competitors, and the market is imperfectly competitive leading to losses in efficiency and equity.Secondly, price searching firms are also imperfectly competitive. Firms who produce goods with at least some product differentiation can to a certain amount affect market price. There are three types of imperfect competitors: monopolistically competitive, oligopoly, and monopoly. With monopolistically competitive, like the perfectly competitive firm, there are many producers, only short-run economic profits can be attained, and products produced are very similar but do have some relative differentiation. Oligopolies and monopolies, on the other hand, have high barriers to entry, and although for oligopolies there is product differentiation but similar products from competitors, there are too few competitors due to high barriers to entry to deny the oligopolies long-run economic profits.What are some other characteristics of oligopolies that differentiate them from monopolistically competitive. Economies of scale is very high. Usually with oligopolies, the long-run average total cost curve has a relatively long economies of scale section, with relatively smaller constant returns and diseconomies sections. Collusion and mergers tend to pervade this market structure, especially when it becomes difficult to combat diseconomies of scale.Monopolies, on the other hand, have no close competitors, the market demand curve is its demand curve, and no close substitutes exist. Pure monopolies are rare and are either prevented or eliminated due to anti-trust laws, like the Sherman Anti-trust Act of 1890, which break them up. The government can regulate and allow a firm to operate as a monopoly, but the regulated monopoly will not have pure monopoly pricing power nor ultimate economic profits. A regulate monopoly is called a natural monopoly, and the firm is allowed only a fair price at which price is set at its ATC. 

Acct 530 midterm exam (100% correct)

ACCT 530 Accounting Ethics and Related Regulatory Issues
(Keller Graduate School – Spring 2016)
 

Question 1.

Question :

(TCO A) All of the following characteristics describe the importance of integrity in decision making, except:

Question 2.

Question :

(TCO A) An accountant who goes outside the entity to blow the whistle on financial wrongdoing by his/her employer violates:

Question 3.

Question :

(TCO A) The Public Interest Principle in the AICPA Code of Professional Conduct recognizes:

Question 4.

Question :

(TCO A) When making a donation at the local Goodwill, Martha tells the clerk that her old computer is worth $400 when she knows it is only worth $100, just so she can deduct more on her taxes. Which theory best describes Martha’s behavior?

Question 5.

Question :

(TCO A) Ethical relativism can best be described as a(n):

Question 6.

Question :

(TCO B) Each of the following is a pillar of corporate governance, except for:

Question 7.

Question :

(TCO B) The Institute of Internal Auditors Code of Ethics includes each of the following principles, except:

Question 8.

Question :

(TCO B) The ACFE found that the most common way that fraud is first detected is through:

Question 9.

Question :

(TCO B) Top values included in corporate values statements include:

Question 10.

Question :

(TCO B) In an ethical decision-making model, the first step is to:

Question 11.

Question :

(TCO B) What is the agency problem?

Question 12.

Question :

(TCO C) The ethical domain in accounting and auditing refers to:

Question 13.

Question :

(TCO C) The need to exercise professional skepticism in auditing can be linked to:

Question 14.

Question :

(TCO C) After framing the question, what should be the next step in decision making when faced with an ethical dilemma?

Question 15.

Question :

(TCO C) Thorne’s Integrated Model of Ethical Decision Making can best be described as:

Question 16.

Question :

(TCO H) Wanda is faced with an ethical dilemma. She knows her supervisor, the CFO, wants to accelerate the recoding of revenue to an earlier period in order to “make the numbers.” But Wanda is convinced this would violate GAAP. If Wanda reasons at stage 4 of Kohlberg’s model, she is most likely to:

Question 17.

Question :

(TCO H) Maya is the CEO of Gadget Corporation, a publicly-traded company. She was informed by the CFO that the company’s earnings were down 40 percent from the prior year due to the recession. The company’s stock price has declined by 30 percent. The CFO comes up with a scheme to hide debt and inflate revenues by selling underperforming assets to a special purpose entity affiliated with the company. Maya is concerned about possible effects on the creditors, but ultimately, she agrees to the accounting. Maya is reasoning at:

Question 18.

Question :

(TCO D) The principle of ethical behavior in the AICPA Code that asks questions directly related to ethical behavior is:

Question 19.

Question :

(TCO D) Under the Sarbanes-Oxley Act, the auditor’s responsibility with respect to internal controls can best be stated as:

Question 20.

Question :

(TCO D) A CPA who informs management of a material misstatement in the financial statements can go to the SEC with his/her concerns if:

Question 1:
(TCO A) Susie, a newly graduated BBA in accounting, has started a job with the state budgeting office. Susie has been placed over expense accounts. The state has a travel policy stating that a state employee may be reimbursed up to $90 per night for a hotel room and up to $40 per day for meals, as long as the employee turns in food receipts. On the first expense account Susie works on, the employee has a hotel receipt for $130 a night, but no food expenses. Susie processes the reimbursement for $90. The employee becomes irate as his reading of the travel policy is that he can be reimbursed for $130 a night for hotel and food with a receipt. The employee claims this has never been a problem in the past and has always been reimbursed $130 a night, whether for hotel only or both hotel and food.
Discuss which ethical theory supports Susie and the employee’s take on the travel policy. Which would you choose, and why?
 

Question 2.
 (TCO B) An Internet company has a chance to expand its business into a developing country. This chance would make money for its shareholders, as it would be the first Internet company allowed in the country. However, the conditions demanded by the country is that the Internet company must turn over to the government the history of Internet sites visited by its citizens. Additionally, the company must censor Internet sites requested through the search engine. In the United States and other countries, the Internet company would not monitor, censor, or turn over a history of Internet sites to any government. What should the Internet company do? Use ethical theories and ethical decision-making models to back up your decision.

Question 3.
 (TCO C) Paul is quickly moving up in the accounting department of RAC Inc. It is year-end; he has just received news that the estimates of the estimated useful life and salvage values were wrong and must be changed. Of course, that changes the depreciation expense and accumulated depreciation. Paul calls his wife to explain why he will be late again. Upon the conversation, he is pondering on a comment his wife made; she said, “I’m no accountant, but after four years, you would think that the company could get done how its estimates affect expenses and those other accounts.” What might the company be doing, and what should Paul do from an ethical reasoning view?

Question 4.
 (TCO D) A young man by the name of Mr. Meeks works at an accounting firm that has a written ethics code of conduct. The code specifically outlines the duties and obligations that every employee must follow without question. One of rules states that every accountant should not lie under any circumstances. Last week, Mr. Meeks sent out a finalized tax return to Wrong Client. Wrong Client called Mr. Meeks from the card attached to the tax return and informed Mr. Meeks that he was sending the tax return back to him overnight. Meanwhile, Right Client called Mr. Meeks and wanted to know where the tax return was. Mr. Meeks told Right Client that he sent it to the wrong address, and he will send it out as soon as he received it back from Wrong Client. Right Client was irritated and called the partner of the firm. The partner scolded Mr. Meeks and wanted to know why he told the client he sent the return to the wrong address. The partner said he should have told the client that the return was in the 2nd partner review or some other excuse to cover up the mistake. Mr. Meeks explained that the ethics code of conduct specifically states that he should not lie under any circumstances, and he was just following his ethical duty. The partner grinned and told Mr. Meeks that the next time this happens, he should consult with the partner first. Using the ethical decision-making model and ethical theories, justify the positions of either the partner, Mr. Meeks, or an alternative solution.

Word_intro_cap1_national_sales_meeting | Computer Science homework help

Word_Intro_Cap1_National_Sales_Meeting
Word Intro Cap1 National Sales Meeting
  
Project Description:
In this project, you will apply skills you practiced from the Objectives in Word Chapters 1-3. You will assist Irene Shviktar, the Vice President of Marketing, to edit and create documents for a National Sales Meeting that will precede a Winter Sports Expo sponsored by Front Range Action Sports. The documents include a cover letter from the vice president to the company president. The letter will accompany a packet of materials for the meeting and the expo, which includes a brief resume for the guest speaker, a flyer that will announce the expo, a newsletter for employees, and a research paper on the history and development of skis.
     
Open   the Word document Student_Word_Cap1_National_Sales_Meeting.docx downloaded with this Project.   Be sure that the rulers and formatting marks display.
 
On the letter on Page 1, select   the first paragraph—Front Range Action   Sports—and increase the Font Size to 28 pt. Change the Font Size of the   next four paragraphs—the address lines and website—to 12 pt.
 
Select the first five paragraph   lines that you just formatted, change the Font to Arial, and then with the   text selected, display the Borders and Shading dialog box. Create a 6 pt,   Automatic-colored border on the left side of the selected text. 
  In the paragraph that begins If you   have any, select the second sentence and move it to the beginning of the   paragraph. Adjust spacing as necessary so that there are no extra blank   spaces at the end of the paragraph.
 
On Page 2, in the newsletter,   select the second paragraph of text, which begins with Employee Newsletter. Display the Borders and Shading dialog box,   and then add an Automatic-colored, 3 pt line below the paragraph.
 
Starting with the paragraph that   begins National Sales Meeting, select   all of the text from that point to the end of the page, including the   paragraph mark after the word event. Do   not select the Page Break. Change the Spacing After to 6 pt, format the text   in two columns, and apply the Justify alignment.
 
At the top of the first column,   select the paragraph National Sales   Meeting. From the Font dialog box, change the Font Size to 20, apply   Bold, and add the Small caps effect. Then Center the paragraph. Apply the   same formatting to the paragraph Winter   Sports Expo.
 
On the same page, in the blank   line above the last paragraph of the newsletter, insert the picture from your   downloaded files wCap1_Powder_Skiing.jpg.   If necessary, set the Width of the picture to 3″ and apply a 10 pt   Soft Edges effect.
 
In the blank paragraph at the   top of Page 3, insert a 2×3 table. In the first cell of the table, type the   following four lines, pressing ENTER after each line: 
Robert   Lewis1227   Aspen Lake TrailVail,   CO 81657www.boblewisskis.com
 
In the second row of the table,   in the first cell, type CAREER HIGHLIGHTS and then press TAB. In the second cell of the   second row, insert the text from the downloaded file wCap1_Career_Text.docx and then press BACKSPACE to remove the   blank line at the bottom of the inserted text.
 
In the third row of the table,   in the first cell, type EDUCATION and then in the cell to the right, type Mr. Lewis’   educational information as follows, pressing ENTER after each line:University   of ColoradoPh.D.   in PsychologyUniversity   of ColoradoM.S.   in PsychologyUniversity   of MinnesotaB.S.   in Psychology
 
Insert a new row at the bottom   of the table. In the first cell of the new row, type CONSULTANT and then in the cell to the   right, type the following, pressing ENTER after each line:U.S.   Junior Ski TeamU.S.   National Ski TeamSpecial   Olympics
 
Apply Bold to the headings CAREER HIGHLIGHTS, EDUCATION, and CONSULTANT. Drag the vertical border between the two columns to   the 1.5-inch mark on the horizontal ruler.
 
In the first row, merge the two   cells, and then Center the text. Select Robert   Lewis, increase the Font Size to 24 pt, apply Bold, and then add 24 pt   space Before the text. Select the web address and add 18 pt space after the   text.
 
Create a bulleted list, using   solid round black bullets, for the items below SKIING and below COACHING. Apply   Bold to the name of each university, and then apply 12 pt spacing after to   the name of each college degree.
 
Select the table, and then   remove all borders. From the Borders and Shading dialog box, add a 3 pt solid   border to the top of the table.
 
Near the top of Page 4, in the   paragraph that begins The use of skis, in   the third line, position the insertion point to the right of the period   following wood, and then insert the   following footnote: The oldest known ski and pole is more than 4,000 years   old.
 
Modify the footnote style by   changing the Font Size to 11 pt, add a First Line Indent of 0.5″, and   set Line spacing to 2.0 (double).
 
In the paragraph that begins The use of skis, position the   insertion point to the left of the period at the end of the paragraph. Using   the MLA format, add the following Book citation:  Author: Huntford, Roland  Title: Two   Planks and a Passion: The Dramatic History of Skiing  Year: 2008  City: New   York  Publisher: Continuum Press 
  In the text, select the Huntford citation   and add the page numbers 4-6
 
On Page 6, in the blank line   below the Works Cited title, insert   the built-in Bibliography. Select the two references, change the line spacing   to 2.0 and change the Spacing After to 0 pt. Center the Bibliography title. After the bibliography is entered and   formatted, delete the Works Cited   paragraph.
 
On Page 7, select the two   paragraphs below the title that begin Friday   and Saturday, and then change   the Spacing After to 0.
     
Select   the three paragraphs below the title—the   dates—and then from the Borders and Shading dialog box, apply a Box border   using theme color Blue, Accent 1 (fifth column, first color) and a 3 pt   border. Click the Shading tab, and add Shading using theme color Blue, Accent   1, Lighter 80% (fifth column, second color).
 
Click after the colon at the end   of the line that precedes the bulleted list. Insert the downloaded picture wCap1_Downhill_Skiing.jpg. Change the   Height of the picture to 3.5″, and then set the wrapping to Square.
 
Position the picture so that the   Horizontal Alignment is set to Right relative to Column and the Vertical   Alignment is set to Top relative to Line. Apply a Picture Style using the   Soft Edge Rectangle.
 
At the bottom of the flyer,   click in the second blank paragraph below the last paragraph of text. Insert   a Basic Process SmartArt (first style under Process). Click the outer   rectangle surrounding the SmartArt to select it, and if necessary, change the   wrapping style to In Line with Text. On the Format tab, set the Height of the   SmartArt graphic to 1″ and the Width to 6.5″. Add the following   text, in order, to the three shapes:ExhibitsSpeakersWorkshops 
  To the SmartArt graphic, apply the 3-D Polished style. 
 
Save and close the file, and   then submit for grading.