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.
Answer:
total sales are the internal failure costs is 2%
Explanation:
given data
form to reduce errors = $15,000
customer complaints = 75,000
Verifying = 30,000
Correcting errors = 60,000
Total = $180,000
sales = $3,000,000
to find out
total sales are the internal failure costs
solution
we know here that internal failture cost is express as
internal failture cost = correcting error in form ...........1
internal failture cost = $60000
and
internal failture cost as % of total cost is here as
internal failture cost to sale = .......2
internal failture cost to sale =
internal failture cost to sale = 2%
so total sales are the internal failure costs is 2%
Answer: (B) Product mix
Explanation:
The product mix is one of the important element of the marketing mix as it offers a various types of product ranges in the market and when the company offers a large number of the product line availability in the market for the consumers the this is known as the product mix.
The product mix is one of the important element for all the companies as it provide the complete image of the products and the brand of the specific organization in the market and it also helps in maintaining the consistency.
According to the given question, the Clorox sells the one of the 5 important product lines on the basis of the specific product mix dimensions as it s one of the important concept in the business model.
Therefore, Option (B) is correct answer.
Answer:
$138,000
Explanation:
The computation of the machine cost that would be reported is shown below:
= Purchase value of machine + shipping cost + installation cost + testing cost
= $126,000 + $3,000 + $4,000 + $5,000
= $138,000
At the time of reporting the machine cost, we have to consider all the cost that is related to the machine. Therefore, all the given cost is considered.
That would be:
B.) Defualt