Borner communications’ articles of incorporation authorized the issuance of 130 million common shares. the transactions described below effected changes in borner’s outstanding shares. prior to the transactions, borner’s shareholders’ equity included the following: shareholders’ equity ($ in millions) common stock, 100 million shares at $1 par $ 100 paid-in capital—excess of par 300 retained earnings 210 required: assuming that borner communications retires shares it reacquires (restores their status to that of authorized but unissued shares), record the appropriate journal entry for each of the following transactions: (if no entry is required for a transaction/event, select "no journal entry required" in the first account field. enter your answers in millions (i. e., 10,000,000 should be entered as on january 7, 2018, borner reacquired 2 million shares at $5 per share. on august 23, 2018, borner reacquired 4 million shares at $3.50 per share. on july 25, 2019, borner sold 3 million common shares at $6 per share.

Consider the local telephone company, a natural monopoly. the following graph shows the monthly demand curve for phone services and the company’s marginal revenue (mr), marginal cost (mc), and average total cost (atc) curves. 0 2 4 6 8 10 12 14 16 18 20 100 90 80 70 60 50 40 30 20 10 0 price (dollars per subscription) quantity (thousands of subscriptions) d mr mc atc 8, 60 suppose that the government has decided not to regulate this industry, and the firm is free to maximize profits, without constraints. complete the first row of the following table. pricing mechanism short run long-run decision quantity price profit (subscriptions) (dollars per subscription) profit maximization marginal-cost pricing average-cost pricing suppose that the government forces the monopolist to set the price equal to marginal cost. complete the second row of the previous table. suppose that the government forces the monopolist to set the price equal to average total cost. complete the third row of the previous table. under average-cost pricing, the government will raise the price of output whenever a firm’s costs increase, and lower the price whenever a firm’s costs decrease. over time, under the average-cost pricing policy, what will the local telephone company most likely do