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In an oligopoly market, the demand curve for a manufacturer is approximate horizontal. This situation is most relevant to which of the following models？

A. Kinked demand model.
B. Stackelberg model.
C. Nash equilibrium model

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Income statement information for Quick Corp. for the years ended December 31, 2000 and
2001 was as follows (in $ millions):
2000 2001
Sales 30,000,000 32,000,000
Cost of Goods Sold (16,000,000) (17,000,000)
Gross Profit 14,000,000 15,000,000
Amortization of Franchise (1,500,000) (1,500,000)
Other Expenses (7,000,000) (7,000,000)
Net Income 5,500,000 6,500,000
Quick acquired a franchise in 2000 for $15,000,000 that Quick elected to amortize over 10
years. Ignoring taxes, if Quick expensed the franchise cost in 2000 instead of amortizing it, net
income for 2000 and 2001 would be, respectively:

A. -$8,000,000 and $8,000,000.
B. -$9,500,000 and $8,000,000.
C. -$8,000,000 and $6,500,000.
D. -$9,500,000 and $6,500,000.

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Which of the following statements about monopolistic market is least accurate？

A. Economic profit can exist in the long run due to high entry barriers.
B. The product offered by the seller has no close substitute.
C. A monopolist will charge as high a price as possible.

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Which of the following statements about depreciation is TRUE？

A. The initial tax savings created by using accelerated depreciation rather than straight-line depreciation is a deferral because a greater tax payment will be required at the end of the asset’s life.
B. Straight line depreciation yields a decreasing rate of return over the life of the asset.
C. The total depreciation expense calculated with the sum of the years digits method is greater than that given by using the straight-line method.
D. All of these are correct.

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Quad Associates, Inc.抯 net income for 2001 was $892,000 with 400,000 shares outstanding.

A. $2.23.
B. $2.41.
C. $2.11.
D. $2.01.

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In an oligopoly market, the demand curve for a manufacturer is approximate horizontal. This situation is most relevant to which of the following models？

A. Kinked demand model. B. Stackelberg model. C. Nash equilibrium model

Which of the following statements about monopolistic market is least accurate？

Which of the following statements about depreciation is TRUE？

Quad Associates, Inc.抯 net income for 2001 was $892,000 with 400,000 shares outstanding.

A. Kinked demand model.
B. Stackelberg model.
C. Nash equilibrium model