Answer:
See the explanation below.
Explanation:
Coase theorem states that it is possible for private parties to solve the problems of externalities with involving a third party it is costless for them to bargain over resource allocation.
Given this description, we can now answer the question as follows:
a. What determines whether your roommate smokes in the room?
Based on the above, the smoker and non-smoker will bargain over whether it is possible for the smoker to continue smoking in the room based on the value of the choice of each party.
If the value placed on clean air by the nonsomker is greater than the value the smoker placed on smoking, the bargain will result in stopping smoking by the smoker. But if the value placed on smoking by the smoker is greater than the value the nonsmoker placed on clean air, the bargain will result in the smoker continue to smoke in the room.
b. Is this outcome efficient?
This outcome is efficient as the bargaining process is costless or as long as no transaction costs prohibit them from reaching an agreement.
c. How do you and your roommate reach this solution?
It is possible to reach this solution either by the non-smoker paying off the smoker to stop smoking, or the smoker paying off the non-smoking roommate to continue smoking.
Answer:
The correct answer is penetration pricing.
Explanation:
It is one of the pricing strategies that the company can follow when deciding to introduce a new product in the market. It consists of setting a low price at the time of product launch, in order to stimulate sales and quickly gain market share.
This strategy requires a great effort in distribution and promotion, in order to achieve market dominance that facilitates obtaining long-term benefits.
It is, for example, the strategy that the newspaper La Razón used at the time of its launch. It was sold for a time at a lower price than usual in this category of products, in order to make it known among consumers. Subsequently, its price was equal to that of other newspapers.
Answer:
a. assets will be understated and revenues will be understated
Explanation:
Revenue accrued is recorded as follows :
Account Receivable (debit)
Sales Revenue (credit)
Thus omission of this adjustment would result in Assets (Accounts Receivables) being understated and Revenues being understated as well.
Answer:
The detailed effect of each transaction of P&L, BS and cashflow statements are mentioned below;
Explanation:
2- Receives $700 cash for services provided: Income: +700, Total Assets: +700 and Operating Cash: +700
3- Pays $500 cash for employee wages: Income: -500, Total Assets: -500 and operating cash: -500
4- Incurs $100 legal costs on credit: Income: -100, Total liabilities: +100 and operating cash: +100
5- Purchases $200 of supplies on credit: Income: -200, total liabilities: -200 and operating cash: +200
6- Buys equipment for $300 cash: Income: -300, total assets: -300 and operating cash: -300
7- Pays $200 on accounts payable: Total liabilities: -200, operating cash: -200
8- Provides $400 services on credit: Income: +400, total liabilities: +400 and operating cash: +400
9- Pays $50 cash for dividends: Total Assets: -50 and financing cashflow: -50
10- Collects $400 cash on accounts receivable: total assets: +400, operating cash: +400
