Answer:
Amount to be used to value inventory = $22
Explanation:
Inventories are generally valued at lower of cost or market value.
In that, cost is considered:
Net Realizable Value = Selling price less any cost = $30 - $5 = $25
Cost = $22
Since the Net Realizable Value is more than cost, replacement cost will not be considered.
Where NRV is less than cost, then replacement value is considered.
Here, Therefore inventory will be recorded as $22 at cost.
Answer: Maximize joint welfare in respective or the right owner.
Explanation: A coase solution to a problem of externality insures that a socially efficient outcome is to maximize the joint welfare, irrespective of the right of ownership.
The Coase theorem states that when transaction cost are low, two parties will be able to bargain and reach an efficient outcome in the presence of an externality.
Answer: $80
Explanation:
The opportunity cost is regarded as the real cost of the alternative that was left or forgone.
Based on the information given in the question, the opportunity cost is the free ticket to a Post Malone concert that is worth $80 which was given to me by my friend.
Therefore, the correct option is E.
