Samarium is a "rare-earth" element that is used to produce magnets with permanentmagnetization, drugs
for chemotherapy, control rods for nuclear reactors and aerospace equipment. it is costly to extract from
the ground, creates a lot of pollution when mined and refined. firms that produce samarium must plan
production in advance and production is relatively slow to adjust.
suppose:
• world demand for samarium is given by the inverse demand curve p =20,000 – 20 q, where q is in tons.
• the marginal cost to extract a ton of samarium is mc = 2000
(a) if samarium were supplied by a monopolist, what price would the monopolist charge?
(b) what would be the monopolist’s profit, consumer surplus and deadweight loss?
(c) if two identical firms supplied samarium, what would be the equilibrium? how much would each
firm produce? what would be the market clearing price?
(d) what would be the firms’ profits, the consumer surplus and the deadweight loss?
(e) briefly explain why your answer in (d) is the same or different than your answer in (b).
(f) finally, what would happen if one of firms (say firm b) faced a capacity constraint and could
produce, at most, q = 200. how much would firm a produce? what would be the equilibrium price?

Assume that all of thurmond company’s sales are credit sales. it has been the practice of thurmond company to provide for uncollectible accounts expense at the rate of one-half of one percent of net credit sales. for the year 20x1 the company had net credit sales of $2,021,000 and the allowance for doubtful accounts account had a credit balance, before adjustments, of $630 as of december 31, 20x1. during 20x2, the following selected transactions occurred: jan. 20 the account of h. scott, a deceased customer who owed $325, was determined to be uncollectible and was therefore written off. mar. 16 informed that a. nettles, a customer, had been declared bankrupt. his account for $898 was written off. apr. 23 the $906 account of j. kenney & sons was written off as uncollectible. aug. 3 wrote off as uncollectible the $750 account of clarke company. oct. 20 wrote off as uncollectible the $1,130 account of g. michael associates. oct. 27 received a check for $325 from the estate of h. scott. this amount had been written off on january 20 of the current year. dec. 20 cater company paid $7,000 of the $7,500 it owed thurmond company. since cater company was going out of business, the $500 balance it still owed was deemed uncollectible and written off. required: prepare journal entries for the december 31, 20x1, and the seven 20x2 transactions on the work sheets provided at the back of this unit. then answer questions 8 and 9 on the answer sheet. t-accounts are also provided for your use in answering these questions. 8. which one of the following entries should have been made on december 31, 20x1?

In 2000, campbell soup company launched an ad campaign that showed prepubescent boys offering soup to prepubescent girls. the girls declined because they were concerned about their calorie intake. the boys explained that “lots of campbell’s soups are low in calories,” which made them ok for the girls to eat. the ads were pulled after parents expressed concern. why were parents worried? i

Salaries are $4,500 per week for five working days and are paid weekly at the end of the day fridays. the end of the month falls on a thursday. the accountant for dayton company made the appropriate accrual adjustment and posted it to the ledger. the balance of salaries payable, as shown on the adjusted trial balance, will be a (assume that there was no beginning balance in the salaries payable account.)