In 2014, Time Warner and Comcast announced their intention to merge. This prompted questions of monopoly because the combined company would supply cable access to an overwhelming majority of Americans. It also raised questions of monopsony since the combined company would be virtually the only purchaser of programming for broadcast shows. Although the merger was ultimately disallowed, assume that it had occurred. In each of the following, determine whether it is evidence of monopoly, monopsony, or neither. a. The monthly cable fee for consumers increases significantly more than the increase in the cost of producing and delivering programs over cable.
b. Companies that advertise on cable TV find that they must pay higher rates for advertising.
c. Companies that produce broadcast shows find they must produce more shows for the same amount they were paid before.
d. Consumers find that there are more shows available for the same monthly cable fee.

Walsh company manufactures and sells one product. the following information pertains to each of the company’s first two years of operations: variable costs per unit: manufacturing: direct materials $ 25 direct labor $ 12 variable manufacturing overhead $ 5 variable selling and administrative $ 4 fixed costs per year: fixed manufacturing overhead $ 400,000 fixed selling and administrative expenses $ 60,000 during its first year of operations, walsh produced 50,000 units and sold 40,000 units. during its second year of operations, it produced 40,000 units and sold 50,000 units. the selling price of the company’s product is $83 per unit. required: 1. assume the company uses variable costing: a. compute the unit product cost for year 1 and year 2. b. prepare an income statement for year 1 and year 2. 2. assume the company uses absorption costing: a. compute the unit product cost for year 1 and year 2. b. prepare an income statement for year 1 and year 2. 3. reconcile the difference between variable costing and absorption costing net operating income in year 1.