Answer: Option C
Explanation: The given case, illustrates the law of diminishing marginal utility. As per this law, as the consumer consumes more and more of goods the marginal utility from every additional unit tends to decrease.
This makes the demand curve of the individual, slope downward. As the utility satisfaction decreases the price consumer willing to pay decreases .
Hence from the above we can conclude that the correct option is C.
Answer:
=$15
Explanation:
An economist will consider the cost of the photo as the materials costs plus the opportunity cost of labor for Jessica. For Jessica, the opportunity cost of making the photo frame is the amount she would have earned working at the coffee shop. Therefore, the $10 she would have earned at the coffee shop is the labor cost of producing one photo frame.
The total cost of making one photo frame would be $5 plus $10.
i,e. $5 + $10 = $15
Profit from the photo frame = selling price - cost price
=$30- $15
=$15
Answer:
Explanation:
negative externality (NE)
positive externality (PE)
a. Overallocation of resources: NE
b. Tammy installs a very nice front garden, raising the property values of all the other houses on her block. PE
c. Market demand curves are too far to the left (too low). NE
d. Under allocation of resources. PE
e. Water pollution from factory forces neighbors to buy water purifiers. NE
Answer:
Explanation:
The journal entry to record the given transaction is shown below:
Cash A/c Dr XXXXX
To Common stock A/c XXXXX
(Being the issuance of the common stock is recorded)
The accounting equation is
Total Assets = Total liabilities + Stockholder equity
Cash Increased = No effect + Increased
Therefore, the cash account and the common stock is increased.
Answer:
$874.50
Explanation:
Calculation to determine the cost recovery deduction for 2020
2020 cost recovery deduction = $10,000 × 17.49% × ½
2020 cost recovery deduction = $874.50
Therefore the cost recovery deduction for 2020 is $874.50
