Workers intentionally reduce productivity, can also be a strike, if too little work is done.
Answer:
Option (c) is correct.
Explanation:
There are two types of externality are as follows:
(a) Positive externality
(b) Negative externality
Negative externality occurs when a third person is affected by the engagement of two parties. It means that there is a reduction in the consumption function of the third person from the production of goods by the other parties.
In our case, a firm which produces paper and from this production of paper there is an emission of Dioxin which affect the consumption of nearest persons or firms.
Therefore, a paper producing firm have to consider all the externality while calculating the total cost.
Out of the money you make set some aside for unexpected expenses
Answer:
Option D is correct,$1,950,000
Explanation:
In order to compute the closing balance of retained earnings, the preferred shares dividends for prior and current years as well as the common stock dividend must be deducted from net income before adding the remnant to the opening retained earnings:
Net income $870,000
Preferred dividend prior year($100*20000*8%) ($160,000)
Preferred dividend current year($100*20000*8%) ($160,000)
Common stock dividend($2*100,000) ($200,000)
net income after dividends $350,000
Closing retained earnings=$1600,000+$350,000
=$1,950,000