Answer:
Part a: The value of Y_A and Y_B are and respectively.
Part b: Y_A and Y_B are given as and respectively for maximization of Y_B
Part c: The condition for the Pareto efficient allocation is Y_A=Y_B
As the value of Y_A and Y_B are not equal in part 2 thus the condition is not Pareto efficient
Explanation:
Part a
For the value of the utility function is given as
Also the YB is given as
So the value of Y_A and Y_B are and respectively.
Part b:
Now
For the maximization
From question 1 Y_A and Y_B are given as and respectively for maximization of Y_B
Part c:
At the Pareto efficient allocation
This is simplified to
The condition for the Pareto efficient allocation is YA=YB
As the value of YA and YB are not equal in part 2 thus the condition is not Pareto efficient
Answer:
$3,900
Explanation:
December 15: The company sold $2,000 of product to the customer with terms 2/15, n/45. December 31:The company has a fiscal year end of December 31. The company estimates using the aging-of-Accounts Receivable.
Accounts Receivable were $140,000, 3% is the estimate for doubtful accounts, and the Allowance for Doubtful Accounts balance is a $300 debit prior to any adjustment.
Therefore the amount to be credited to doubtful account = 0.03 x 140,000 = $4,200
The amount of bad debts = $4,200 - $300 = $3,900
Answer: The correct answer is choice C.
Explanation: If the fed is looking to increase the money supply there are a variety of ways for them to do this. Two of the ways are in choice c; the fed buys bonds and lowers the discount rate.
Buy purchasing bonds the federal government is putting money into the economy, increasing money supply. Lowering the discount rate also increases the money supply. When banks pay a lower interest rate they can in turn charge a lower interest rate to its customers, resulting in more customers borrowing money.
Answer:
b. $588
Explanation:
Terms 2/10, n/30 means that 2% discount for the payment within 10 days and the full amount to be paid within 30 days.
When Larson Company sold merchandise, the following entry was made to recording revenue (sales) and the receivable:
Debit Receivable Account $1,000
Credit Revenue $1,000
On July 20 Stuart Co. returns merchandise, the entry is made to record the decreasing of Receivable Account:
Debit Revenue $400
Credit Receivable Account $400
The balance Receivable Account of Stuart Co. = $1000-$400 = $600
On July 24, Stuart Co. makes the payment, the sales discount was:
$600 x 2% = $12
The amount of cash received = $600-$12=$588
The following entry is made:
Debit Cash: $588
Debit Sales discount: $12
Credit Receivable Account $600