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4 years ago

Why markets can only supply private goods efficiently?

1 answer:

7 0

<span>Private good is a product and/or service produced by a private business and purchased to increase the utility and/or productivity of the buyer. The majority of the goods and services consumed in a market economy are private goods, and their prices are determined by the market forces of supply and demand. Private goods are both excludable and rivalrous, where excludability means that producers can prevent some people from consuming the good or service based on their ability or willingness to pay and rivalrous indicates that one person's use of a product reduces the amount available for use by another. In practice, private goods exist along a continuum of excludability and rivalry and can even show only one of these traits.</span>

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Assume the price of product Y (the quantity of which is on the vertical axis) is $15 and the price of product X (the quantity of

Delicious77 [7]

Answer:

slope of the resulting budget line = $\frac{1}{5}$ = 0.2

Explanation:

given data

price of product Y = $15

price of product X = $3

money income C = $60

to find out

absolute value of the slope of the resulting budget line

solution

we know here equation of resulting budget line is that is express as

AX + BY = C

here A and B are the quantity and X and Y are price and C is income

3 A + 15 B = 60

the slope of the resulting budget line is

slope of the resulting budget line = $\frac{3}{15}$

slope of the resulting budget line = $\frac{1}{5}$ = 0.2

8 0

3 years ago

The board of commissioners of the city of Jarmaine adopted a General fund budget for the year ending June 30, 2018, which indica

Oksi-84 [34.3K]

A. General journal

Dr Estimated Revenues Control 1,300,000 Dr Estimated Other Financing Sources - Bond Proceeds 520,000

Cr Appropriations Control 1,170,000

Cr Appropriations - Other Financing Uses - Operating Transfers Out 390,000

Cr (Budgetary) Fund Balance 260,000

B. General Journal

Dr Appropriation Control 1,170,0000

Dr Appropriations - Other Financing Uses - Operating Transfers Out 390,000

Dr (Budgetary) Fund Balance 260,000

Cr Estimated Revenues Cr Control 1,300,000

Cr Estimated Other Financing Sources - Bond Proceeds 520,000

Budgetary Fund balance workings

1,300,000-1,170,000= 130,000

520,000- 390,000= 130,000

130,000+130,000= 260,000

6 0

3 years ago

Which of the following is an application of conservatism? A. reporting inventory at the lower of cost or market B. using the sa

Rudiy27

Answer:

The correct answer is letter "A": reporting inventory at the lower of cost or market.

Explanation:

Accounting Conservatism is a doctrine that involves the implementation of accounting laws with a high degree of verification. Accountants practicing conservatism must support approaches that are the most favorable in the company's income statement. If the accountant has two choices to choose from when faced with an accounting problem, the one that produces lower numbers should be chosen.

<em>When it comes to inventory valuation, accounting conservatism states that the lower historical or market cost must be selected while recording the information in the company's ledgers.</em>

5 0

3 years ago

The adjusting entry for the loss of inventory due to shoplifting, employee theft, or errors should be made to:

DerKrebs [107]

The adjust entry should be made to the inventory of the merchandise in which they need to base it on the physical count that will be of good hands to prevent of experiencing the loss of inventory, the employee theft, shop lifting and other more errors.

3 0

4 years ago

RST compay produces a product that has a variable cost of $6 per unit. The companys fixed costs are $30,000. the product sells f

Amiraneli [1.4K]

Answer:

7,500 units

Explanation:

The break-even point is the point in which the earnings and the costs are the same and there is no gain or loss. The formula to calculate the break-even point in units is:

Break-even point in units= Fixed Costs/(Sales price per unit – Variable costs per unit)

Now you have to replace the values given to find units that have to be produced to break even:

Break-even point in units=30,000/(10-6)

Break-even point in units=30,000/4

Break-even point in units=7,500

The answer is that the units that have to be produced to break even are 7,500.

7 0

4 years ago