Prepare the journal entries to record the following transactions on mcleena company's books using a perpetual inventory system.(a) on march 2, borst company sold $800,000 of merchandise to mcleena company on account, terms 2/10, n/30. the cost of the merchandise sold was $540,000. (b) on march 6, mcleena company returned $140,000 of the merchandise purchased on march 2. the cost of the merchandise returned was $94,000. (c) on march 12, borst company received the balance due from mcleena company.

Why is the cournot equilibrium an​ equilibrium? a. there are​ short-run barriers to exit in a cournot​ duopoly, so both firms cannot alter their output levels. b. given the other​ firm's level of​ production, both firms are maximizing profits and cannot improve their situation by unilaterally altering their level of output. c. both firms operate at zero profit under a cournot​ equilibrium, so they would face negative profits if they change output. d. both firms operate at minimum​ long-run average cost under a cournot​ equilibrium, so changes to output would reduce​ long-run profits. even if they​ can't collude, why​ don't firms set their outputs at the joint​ profit-maximizing levels​ (i.e., the levels they would have chosen had they​ colluded)? a. given that other firm produces at the collusive​ level, a firm could increase their own profits by increasing output above the collusive level. b. the midpoint of the collusion curve​ (i.e., the collusive​ outcome) lies below the reaction​ curves, so both firms have an incentive to increase output under the cournot duopoly. c. both a and b are correct d. both a and b are incorrect