<span>b. he/she is not making good use of scarce resources</span>
Answer:
The correct answer is: amount consumed out of an additional dollar of income.
Explanation:
The marginal propensity to consume is a measure to show the increase in consumption of goods and services due to an increase in the disposable income of the consumer.
It is measured by the ratio of change in consumption and change in income. It can also be calculated as 1 - MPS, where MPS is the marginal propensity to save. In other words, MPS is the ratio of change in savings and change in income.
Answer: B. The firm would install the filter at a cost of $ 300,000.
Explanation:
If the community owns the property rights, they would be able to demand that the firm pay the external cost of $500,000 per year.
If on the other hand the company installed a filter, it would cost them $300,000 but then they would not have to pay the community the $500,000.
The lower cost option would be to install the filter for $300,000 which is what the firm would do.
Answer:
Allocated MOH= $18,750
Explanation:
Giving the following information:
The estimated total factory overhead= $300,000
Total estimated direct labor cost= $240,000.
The actual direct labor cost was $15,000.
First, we need to calculate the estimated overhead rate based on direct labor cost. Then, we can allocate overhead.
To calculate the estimated manufacturing overhead rate we need to use the following formula:
Estimated manufacturing overhead rate= total estimated overhead costs for the period/ total amount of allocation base
Estimated manufacturing overhead rate= 300,000/240,000= $1.25 per direct labor dollar
Allocated MOH= Estimated manufacturing overhead rate* Actual amount of allocation base
Allocated MOH= 1.25*15,000
Allocated MOH= $18,750
Tangible assets are first recorded at costs to acquire them for use.
- Tangible assets are fixed assets which is referred to as the physical assets which a company/Buisness owns to carry out its daily activities in order to create profit .
- They include<em> investments, cash, inventory, vehicles, office equipment, buildings,machines, </em>etc
Tangible assets are very important to businesses as they
- Help in business operations to provide goods and services
- Serve as collateral for loans
- In case of emergency, they can generate cash
Tangible assets are first recorded in the balance sheet as costs to acquire them for use.
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