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UkoKoshka [18]
3 years ago
5

After 9/11, the demand for air travel fell substantially, bringing the airline industry to its knees. Congress wanted to compens

ate the airlines for losses but there was a great debate over how much money was at stake.
How would you estimate the amount of compensation? Hint: producer surplus.
Business
1 answer:
madam [21]3 years ago
3 0

<u>Answer: </u>

I would estimate the amount of compensation based on the statistical data relating to the loss that the airline companies are facing since 9/11.

<u>Explanation: </u>

  • The surplus that the airline companies were earning over their operational expenses was nothing else but the profit margin that the companies were earning from the business.
  • To devise the compensation to be given to the companies, calculating the surplus that they were earning from their operations would thus prove to be an intelligent solution.
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Atlas Manufacturing produces a unique valve, and has the capacity to produce 50,000 valves annually. Currently Atlas produces 40
LekaFEV [45]

Answer:

The Total manufacturing costs will increase while the unit manufacturing costs will decrease

Explanation:

The most likely behavior of the total manufacturing costs as well as the unit manufacturing costs is that the Total manufacturing costs will increase while the unit manufacturing costs will decrease because Atlas Manufacturing has the capacity to produce 50,000 valves annually which is per year in which it produces 40,000 valves and is about to increase the production to 45,000 valves the next coming year which will cause the manufacturing costs to increase and inturn cause the unit manufacturing costs to decrease.

6 0
3 years ago
The 1,000 accounts receivable of Baker Company have a total book value of $30,000 (Average book value = $30). Wendy Duffo, CPA,
Lyrx [107]

Answer:

B) $29,500

Explanation:

If we are going to use the mean per unit sampling to estimate the total audited value all we have to do is multiply the total number of accounts by the mean audited value of the sample (50 accounts):

total estimated audited value = 1,000 accounts x $29.50 per account

total estimated audited value = $29,500

7 0
3 years ago
On January 1, 2021, Red Inc. issued stock options for 200,000 shares to a division manager. The options have an estimated fair v
morpeh [17]

Answer:

$400,000

Explanation:

The compensation expense to be recognized in 2021 is portion of the options value for one year.

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The $400,000 compensation expense is debited to compensation expense account and credited to paid in capital-stock options $400,000 for each of the vesting period until the paid in capital -stock options account balance becomes $1,200,000 at end of year 3

6 0
3 years ago
A trade surplus occurs when the value of imports is__________. A. less than the value of exports. B. government spending is less
Reika [66]

Answer: Option A

         

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Trade surplus is seen as a positive indicator of economic growth as a country in surplus will behaving more money to invest in public core services and wont be spending their tax collections on interest and loans taken by international assignations such as IMF or world bank.

Hence from the above we can conclude that the correct option is A.

5 0
3 years ago
Sarah’s marketing team was beginning the process of developing a new product to expand their current product line and/or mix. At
vlada-n [284]

Answer: New-product strategy

Explanation:

Based on the information given in the question, Sarah and her team were at the new product strategy stage of the new product development process.

This is a strategy that is used to develop a new product. The strategy helps to answer questions such as who will benefit from the products, the goals of the company and other necessary details.

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