Answer:B. if transaction costs are low, private bargaining will result in an efficient solution to the problem of externalities.
Explanation:
The coarse theorem:
If there is a conflict between parties this will lead to an effecient results irrespective of who won the right to the property as long as the transaction cost related to the price negotiation is insignificant.
Answer:
Journal Entry
Explanation:
1. There are two obligations in this contract
a. keyboard
b. Customer option for future discount
2. Cash Dr, $69,700
To Deferred revenue - keyboard $66,215
To Deferred revenue - discount coupon $3,485
(Being cash is recorded)
Working note:-
Keyboards = 4,100 × $19
= $77,900
Option = $41,000 × (0.25 - 0.05) × 0.50
= $4,100
Allocation
For keyboard
= $77,900 ÷ ($77,900 + 4,100)
= 0.95
Deferred revenue Keyboard = $69,700 × 0.95
= $66,215
Option = 4,100 ÷ ($77,900 + 4,100)
= 0.05
Deferred revenue - discount coupon = $69,700 × 0.05
= $3,485
3. Cash Dr, $69,700
To Deferred revenue Keyboard $69,700
(Being cash is recorded)
Answer:
C.good
Explanation:
A business can offer either goods or services. Goods are tangible products that can be touched, seen, smelled, eaten, etc., depending on the product, e.g. Coke, chocolate, cars, etc. Services are intangible, meaning that they cannot be seen or touched, they are experienced, e.g. going ot the movies, staying at a hotel, etc.
Answer:
EEOC
Explanation:
The staff probably work for Equal Employment Opportunity Commission (EEOC), an agency designed to analyse the implementation of federals laws. The agency is liable to visit corporations to investigate the discrepancies, and to ensure that the laws are implemented. They enforced the laws, and investigate the complains of the general public regarding employment discrimination.
First of all, GDP does not include household production, production from the underground economy, intermadiate goods or intermediate servces. That is because we define GDP to be the total of all market values of all final goods and services in the country. Hence, the correct answer by the above definition cannot be d. The point of that definition is that household products cannot have a market value and that if we counted towards the GDP both the value of a Graphics Card and that of the PC, we would double count the value of the Graphics Card, thus overestimating the GDP. We see that the value of new houses are included in GDP since they need materials and services and they have a market value, so b is also excluded. Finally, we have shown that b is true but that this is a good thing and leads to a better estimate of total production; the correct answer is a. Here is an example. If there is an economy where in every house there is plenty of wood and people make wood dolls out of tradition, these dolls will not have a market value if they are kept by the people who made them. Nonetheless they are products too and everyone could just try to sell them the next day at a reasonable price; then, the GDP would get a bump out of nowhere, because it cannot account for household items or the underground economy.
