Fuzzy Feet is a monopolistically competitive firm that faces the following demand schedule for its socks. The firm has a fixed cost of $10 and a constant zero marginal cost. In the long run, what is the likely outcome for Fuzzy Feet? Other firms will leave the market, making it more profitable for this firm. Fuzzy Feet will operate at its full capacity achieving it most efficient scale. More firms will enter the market but the price for the good will not change. The firm should expect the demand curve to shift to the left.

On december 31, 2013, coronado company issues 173,000 stock-appreciation rights to its officers entitling them to receive cash for the difference between the market price of its stock and a pre-established price of $10. the fair value of the sars is estimated to be $5 per sar on december 31, 2014; $2 on december 31, 2015; $10 on december 31, 2016; and $8 on december 31, 2017. the service period is 4 years, and the exercise period is 7 years. prepare a schedule that shows the amount of compensation expense allocable to each year affected by the stock-appreciation rights plan.