Answer:
True
Explanation:
Manuel's willingness to pay versus the actual cost of something is defined as consumer surplus.
Consumer surplus = the maximum price that Manuel is willing to pay for the antique car - actual price of the antique car.
If consumer surplus is negative, then Manuel (or anyone else) will not be willing to purchase the car or any other good or service. Consumers will only purchase a good or service if their consumer surplus is ≥ 0.
Answer:
d. too much of the good is being produced
Explanation:
A good has negative externality if the costs to third parties not involved in production is greater than the benefits. an example of an activity that generates negative externality is pollution. Pollution can be generated at little or no cost, so they are usually overproduced. Government can discourage the production of activities that generate negative externality by taxation
Answer:
Check the table in the explanation
Explanation:
Differential analysis
Sell Process Net income unfinished further increase (decrease)
Sale price per unit 58.09 73.08 14.99
Cost per unit
variable 37.97 44.61 -6.64
Fixed 10.12 10.12 0
total 48.09 54.73 8.35
Net income per unit 10 18.35 8.35
The book cases should be sold after processed further
Answer:
B. a finance professor who knows a lot of investment theory
Explanation:
The efficient market theory can be regarded as efficient market hypothesis, it is one that stressed that
all information are been reflected by
share prices. It also state that there is possibility of alpha generation.
Answer: b. Inspection time
Explanation: Overhead allocation is required under the rules of various accounting frameworks and is defined as the apportionment of indirect costs (costs used by multiple activities which cannot be assigned to specific cost objects) to produced goods. Overhead allocation is quite significant because often times, it is substantially greater than the direct cost of goods.
The time spent for inspection which is vital to controlling quality, reducing manufacturing costs, eliminating losses and assigning causes of defective work etc. would be the most accurate measure of activity to use for allocating the costs of inspecting finished products as it is included in manufacturing overhead.
