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In the answer area, start by entering a, b etc. on 4 lines to properly label your 4 answers.Use the T-accounts to answer the questions under the accounts.      Raw Materials   Work in Process     Debit (increase) Credit(decrease)    Debit (increase)Credit(decrease)   Beg Balance 5,500     Beg Balance 4,600       5,700 10,000      6,700               9,000 10,800    28,700      Finished Goods  Debit (increase)Credit(decrease)           Beg Balance 2,700               28,700 20,900                        Manufacturing Overhead Wages & Salaries Payable Credit(increase) Debit (decrease)  Indirect materialsDebit (Increase) 3,300Credit(decrease)    Beg Balance  13,000 13,000   Indirect labor 4,000            Factory costs 2,000            Depreciation  2,700  10,800   Each of the entries, except the beg balance amounts, refer to a debit or credit entry made in the account during the year. None of the accounts have the ending balance entered. $10,000 of raw materials were requisitioned to production. Most answers do not require any calculations–you are required to identify the numbers in the accounts.1. What is the amount of direct materials applied to production?2. What is the amount of manufacturing overhead transferred to production for the year?3. What is the amount of cost of goods manufactured for the year?4. What is the unadjusted cost of good sold?

Antitrust authorities have a difficult time with network goods because:

Discrimination by employers:

Table: Russia, Saudi PayoffsRussiaCooperateCheatSaudi ArabiaCooperate($800, $800)($400, $1,000)Cheat($1,000, $400)($600, $600)Suppose that the oil market is dominated by two large firms, Saudi Arabia and Russia. Both Saudi Arabia and Russia have two choices or strategies: cooperate by cutting back production or cheat by increasing production. The payoff table shows the potential revenues associated with each firm’s strategies. For instance, if Saudi Arabia cheats and Russia cooperates, the payoff to Saudi Arabia is $1,000 and the payoff to Russia is $400. What are Saudi Arabia’s best strategy and associated payoff if Russia cheats?

In the town of Merryweather, citizens are very serious about their Christmas light displays. Consider each scenario and the type of good described.

Which is an example of tying?

Figure: Cleaners’ WagesHow many workers will this firm hire at a wage of $29?

An insurance company can prevent the adverse-selection death spiral by requiring purchasers to have a medical exam. This will allow the insurance company to:

Figure: Demand 2Two firms in an industry act as a cartel, with each firm agreeing to charge a price of $16 and sell 2 units of output. If one of them cheats and produces 2 more units of output, the cheating firm’s total revenue increases by _____ and the other firm’s total revenue decreases by _____.

A monopolistically competitive firm is able to charge P > MC because: