Feet. Note that this equation gives the height up to the demand curve at any H . The fl ow supply curve for housing is given by p = Δ H + 2, where Δ H is the change in the stock. Again, this equation gives the height up to the fl ow supply curve at any value of Δ H . Note that the slopes of the two curves are – 1 and 1, respectively, a fact that allows simple answers to be derived below. (a) Compute the equilibrium price p e (the price at which Δ H = 0). (b) Suppose that prior to the demand shock, the housing market is in equilibrium, with a stock of size H = 1. Verify that the price in the market equals p e when the stock is this size. After the demand shock (e. g., arrival of the Cuban refugees), demand increases to p = 8 – H . (c) With the new higher demand, the price in the market shoots up to a higher value, denoted by p '. Compute p '. (d) Next, compute the change in the housing stock that occurs as developers respond to this new price (compute Δ H ). Then, compute the new size for the housing stock, which equals the original stock plus Δ H . (e) Compute the price that prevails in the market after this increase in the housing stock. Is further adjustment of the stock required to reach equilibrium? How many periods does it take for the market to reach the new equilibrium? Instead of following the sequence you have just analyzed, now suppose that rent control is imposed immediately after the demand shock, with the controlled price set at p c = 3.

In its first year of operations, crane company recognized $31,700 in service revenue, $7,700 of which was on account and still outstanding at year-end. the remaining $24,000 was received in cash from customers. the company incurred operating expenses of $16,600. of these expenses, $12,690 were paid in cash; $3,910 was still owed on account at year-end. in addition, crane prepaid $3,260 for insurance coverage that would not be used until the second year of operations.

Discuss how the resource-based view (rbv) of the firm combines the two perspectives of (1) an internal analysis of a firm and (2) an external analysis of its industry and its competitive environment. include comments on the different types of firm resources and how these resources can be used by a firm to build sustainable competitive advantages.

Assume that all of thurmond company’s sales are credit sales. it has been the practice of thurmond company to provide for uncollectible accounts expense at the rate of one-half of one percent of net credit sales. for the year 20x1 the company had net credit sales of $2,021,000 and the allowance for doubtful accounts account had a credit balance, before adjustments, of $630 as of december 31, 20x1. during 20x2, the following selected transactions occurred: jan. 20 the account of h. scott, a deceased customer who owed $325, was determined to be uncollectible and was therefore written off. mar. 16 informed that a. nettles, a customer, had been declared bankrupt. his account for $898 was written off. apr. 23 the $906 account of j. kenney & sons was written off as uncollectible. aug. 3 wrote off as uncollectible the $750 account of clarke company. oct. 20 wrote off as uncollectible the $1,130 account of g. michael associates. oct. 27 received a check for $325 from the estate of h. scott. this amount had been written off on january 20 of the current year. dec. 20 cater company paid $7,000 of the $7,500 it owed thurmond company. since cater company was going out of business, the $500 balance it still owed was deemed uncollectible and written off. required: prepare journal entries for the december 31, 20x1, and the seven 20x2 transactions on the work sheets provided at the back of this unit. then answer questions 8 and 9 on the answer sheet. t-accounts are also provided for your use in answering these questions. 8. which one of the following entries should have been made on december 31, 20x1?