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of cost or market. Assemble the data in the form illustrated in Exhibit 8.
Inventory Unit Unit
Commodity Quantity Cost Price Market Price
Aquarius 20 $ 80 $ 92
Capricorn 50 70 65
Leo 8 300 280
Scorpio 30 40 30
Taurus 100 90 94
Shop incorrectly counted its inventory as $195,750 instead of the correct amount of
a. State the effect of the error on the December 31, 2010, balance sheet of Boss Motorcycle
b. State the effect of the error on the income statement of Boss Motorcycle Shop for
the year ended December 31, 2010.
2. What is the central tenet of the policy ineffectiveness hypothesis of the new classical proposition?
3. How changes in wealth shifts the consumption function?
The baker uses the floar to make a floar and sells it to consumer for 6$.
1.Value added in each stage of production?
NOTE; The value of the finished goods already includes the value of the intermediate goods.So, including intermediate goods in GDP would be 'double counting'
Assume a perfectly competitive industry where the firms are identical, each with U-shaped short run and long run average cost curves. In the short run, consumers bear none of the burden of a "per firm" tax, while in the long run, consumers bear the entire burden.