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nordsb [41]
3 years ago
11

Jack and Jill are the only two residents in a neighborhood, and they would like to hire a security guard. The value of a securit

y guard is $50 per month to Jack and $90 per month to Jill. Irrespective of who pays the guard, the guard will protect the entire neighborhood and charge $120 per month for the service.Suppose Jack earns $4,000 per month and Jill earns $8,000 per month. a. With a proportional tax of 1 percent on income, how much would Jack and Jill pay, and would it be enough to pay for the security guard?
Business
1 answer:
Step2247 [10]3 years ago
6 0

Answer:

Yes their combined contribution of $120 is sufficient to pay the security guard

Explanation:

This is a form of non-rival service that does not get reduced by consumption by one of the parties. The security guard protects the entire neighbourhood.

Also it is a non-excludable service. If one party does not pay he will still enjoy the service.

Based on their income information and the fact that they are taxed 1%

Jack will pay 0.01 * 4,000 = $40

Jill will pay 0.01 * 8,000 = $80

The total sum is 40 + 80 = $120

As the security guard requires $120 to do the job, their contribution is sufficient.

However the value to Jack is $50 and he pays $40 so he has an excess value of $10

Jill gets a value of $90 but pays $80, so she gets an excess value of $10

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When Excedrin introduced its new Excedrin Migraine into its product line of pain relievers, it was introducing what is called a:
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Answer:

1) Line extension

Explanation:

A product line is made up of a group of products manufactured by the same company and all of them are branded under the same name, e.g. Coke, Diet Coke, Coke Zero

When companies extends their product line, they are adding new products to an existing product line, benefiting from consumers' loyalty to the existing brand.

3 0
3 years ago
PLEASE HELP WILL MARK AS BRAINLIEST ITS URGENT
julia-pushkina [17]
Okay what’s the problem
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3 years ago
On January 1, 2018, Olympic Insurance Company granted 30,000 stock options to certain executives. The options are exercisable no
deff fn [24]

Answer:

The additional information for this question is:

January 1, 2016 $14

December 31, 2016 15

What amount should Olympic recognize as compensation expense for 2016?

The correct answer is $50.000

Explanation:

To find this figure, we take as a reference the price of the fair value of the options that is $ 5 on the grant date, multiplied by the options on the shares totaling $ 30,000. Then, it must be divided between the award period that according to the problem is 3 years (2018-2021). This operation results in a total of $ 50,000 that should be recognized as compensation.

3 0
3 years ago
Pete's Market is a small local grocery store with only one checkout counter. Assume that shoppers arrive at the checkout lane ac
levacccp [35]

Answer:

How did Carter plan to achieve his goals regarding the hostages?

Check all of the boxes that apply.

Convince Iran that the real danger was the Soviet Union, not the United States.

Team up with Iraq to invade Iran.

Get help from other countries to express disapproval of Iran’s actions.

Send many troops in to free the hostages at any cost.

Explanation:

How did Carter plan to achieve his goals regarding the hostages?

Check all of the boxes that apply.

Convince Iran that the real danger was the Soviet Union, not the United States.

Team up with Iraq to invade Iran.

Get help from other countries to express disapproval of Iran’s actions.

Send many troops in to free the hostages at any cost.

5 0
3 years ago
If a gain of $221000 is realized in the cash sale of a building having a book value of $882000, the total amount reported in the
djyliett [7]

Answer:

$1,103,000

Explanation:

The cash flow statement categories the company's transactions in a financial period into 3 groups; these are operating, investing and financing.

The net profit/loss, depreciation, changes in current assets (other than cash) and liabilities are considered as operating activities including income taxes.  

The sale of assets, interest received, purchase of investments are examples of investing activities while the issuance of stocks, debt principal deduction (loan settlement), issuance of debt securities etc are examples of financing activities.

For assets disposed, the amount received from the disposal is the amount recorded as an investing activity.

Amount received  - Book value of asset = Gain on disposal

Amount received = $221000 + $882000

= $1,103,000

8 0
3 years ago
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