Cala manufacturing purchases a large lot on which an old building is located as part of its plans to build a new plant. the negotiated purchase price is $236,000 for the lot plus $131,000 for the old building. the company pays $26,500 to tear down the old building and $39,174 to fill and level the lot. it also pays a total of $1,786.153 in construction costs this amount consists of $1,680,100 for the new building and $106,053 for lighting and paving a parking area next to the building. prepare a single journal entry to record these costs incurred by cala, all of which are paid in cash. view transaction list view generallournal journal entry worksheet record the total costs of the plant assets.

Suppose that each firm in a competitive industry has the following costs: total cost: tc=50+12q2tc=50+12q2 marginal cost: mc=qmc=q where qq is an individual firm's quantity produced. the market demand curve for this product is: demand qd=160−4pqd=160−4p where pp is the price and qq is the total quantity of the good. each firm's fixed cost is.

4. suppose that pollution in a neighborhood comes from two factories, with marginal benefit curves given by mb1 = 12 – p1 and mb2 = 8 – p2. the level of pollution in the neighborhood is given by p = p1 + p2. the government wants to limit pollution by instituting a pollution-rights market. the government’s desired level of p is 10, so it prints 10 pollution rights and offers them for sale to the firms.a)find the equilibrium selling price of a pollution right, as well as the allocation of rights (and hence pollution levels) across the two factories. b)repeat part (a) for the case where the government’s desired level of pollution equals 14. c)comment on the usefulness of a pollution rights market in achieving efficient levels of pollution abatement.

Happy foods and general grains both produce similar puffed rice breakfast cereals. for both companies, thecost of producing a box of cereal is 45 cents, and it is not possible for either company to lower their productioncosts any further. how can one company achieve a competitive advantage over the other?