Ask question

Ask question

All categories

4 years ago

14

Aaron and Donald sign a written contract in which Aaron agrees to supply raw materials to Donald’s company in return for set fee

s for one year. Which form of contract have both the individuals entered into?

1 answer:

juin [17]4 years ago

5 0

Unilateral contract is the correct answer

You might be interested in

Choose the statement about ITQs that is correct.

melomori [17]

Answer:

D. When ITQs are used, no one has an incentive to cheat and exceed the quota.

Explanation:

As ITQs (individual transferable quotas) were initially created by the government to regulate an above all, social affair, which is related to the share in the total allowable catch of fish (species).

Since some of the fishermen have lower and some have higher marginal costs of "producing" fish, they trade ITQ's between themselves, with those who have high marginal costs selling ITQs to those that have low marginal costs. Also, the marginal private cost now becomes determined by the initial marginal private cost of the fish, plus the <u>price of the ITQ</u>. Then, it becomes known as the marginal social cost.

The equilibrium for the ITQ price is the difference between the <em>marginal social benefit</em> and the marginal cost. With the base marginal private cost becoming the marginal social cost, no one has the incentive to exceed the quota, as that would make the marginal cost go higher than the price, and the marginal profit lower. This notion creates the equality between self-interest and social interest.

4 0

3 years ago

Pina Company produces golf discs which it normally sells to retailers for $7 each. The cost of manufacturing 19,900 golf discs i

Ivahew [28]

Answer:

a) <em>Net income using incremental analysis is </em> $692

b) PINA should accept the order because it will increase its net income by $692

<em />

Explanation:

The relevant cash flows for decision to accept or reject the special order are

I. the incremental contribution from of producing 5,350 units

2. The incremental fixed cost- 45,374

Note that whether or not the special order is accepted the fixed cost of manufacturing would be incurred either way.

Contribution per unit =Selling price - Variable cost

Variable production cost per unit = total variable cost / units

= (10,945 + 29651 + 21094)/19,900

=$3.1

Variable cost per unit of sale = $3.1 + $0.35 = $3.45

a) Incremental Analysis

<em>Change in Net Income: $</em>

I<em>ncremental contribution :</em>

( 4.77 - 3.45) × 5,350 = 7,062

<em>Increase in Fixed cost</em> :

(45,374 - 39,004) <u>( 6370)</u>

<em>Net income </em><em><u> 692</u></em>

<em><u>b) </u></em> PINA should accept the order because it will increase its net income by $692

<em />

6 0

3 years ago

Which government branch creates the federal tax law

wolverine [178]

The answer is Congress :)

4 0

3 years ago

Read 2 more answers

Food For Less (FFL), a grocery store, is considering offering one hour photo developing in their store. The firm expects that sa

Sunny_sXe [5.5K]

Answer:

a. and. d

Explanation:

gryyrgrghehrhrhrhhrhrhrhhrjr

8 0

2 years ago

Read 2 more answers

According to the principle of comparative advantage, Group of answer choices countries should specialize in the production of go

Vanyuwa [196]

Answer:

should specialize in the production of goods for which they have a lower opportunity cost of production than their trading partners

Explanation:

A country has comparative advantage in production if it produces at a lower opportunity cost when compared to other countries.

For example, country A produces 10kg of beans and 5kg of rice. Country B produces 5kg of beans and 10kg of rice.

for country A,

opportunity cost of producing beans = 5/10 = 0.5

opportunity cost of producing rice = 10/5 = 2

for country B,

opportunity cost of producing rice = 5/10 = 0.5

opportunity cost of producing beans = 10/5 = 2

Country A has a comparative advantage in the production of beans and country B has a comparative advantage in the production of rice

Country A should specialise in the production of beans and B should specialise in the production of rice

4 0

3 years ago