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NEW QUESTION 44
A company collected $10,000 from a customer in payment for goods sold to the customer a month ago on credit. How would the collection impact the accounting equation?

• A. Increase assets and increase owner's equity
• B. Increase assets and increase liabilities
• C. Increase assets and decrease liabilitiies
• D. Increase assets and decrease assets

Answer: D

NEW QUESTION 45
A student is deciding whether to attend a two-year graduate school program. The tuition is $12,500 per year and the cost of books and supplies is an additional $1,000 per year. The studentcould work instead of going to graduate school and earn $50,000 per year. What is the economic cost of attending graduate school for the student?

• A. $127,000
• B. $73,000
• C. $27,000
• D. $63,500

Answer: A

NEW QUESTION 46
Why are prices typically higher when a firm has monopoly power than when firms are perfectly competitive?

• A. A competitive firm has less incentive to keep prices high on inframarginal customers.
• B. A monopolist cannot sustain profits without expanding production.
• C. Competitive firms do not have enough market power to produce where marginal revenue equals marginal cost.
• D. Monopolies are profit maximizing, while perfectly competitive firms are not.

Answer: A

NEW QUESTION 47
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