When people in a market economy specialize, what do they depend on to make sure their needs are addressed?

Which of the following would be an example of a NEED? A. a warm winter coat B. designer shoes C. your favorite candy D. a new pa

Vikentia [17]

A. A warm winter coat

3 0

3 years ago

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A Coase solution to a problem of externality ensures that a socially efficient outcome is to internalize the externality through

ANEK [815]

Answer: Maximize joint welfare in respective or the right owner.

Explanation: A coase solution to a problem of externality insures that a socially efficient outcome is to maximize the joint welfare, irrespective of the right of ownership.

The Coase theorem states that when transaction cost are low, two parties will be able to bargain and reach an efficient outcome in the presence of an externality.

8 0

3 years ago

Why did early farmers use slash-and-burn agriculture? A. to get rid of pests B. to get rid of old crops C. to keep the soil fert

Sphinxa [80]

C. To keep the soil fertile

the ashes somehow replenishes the soil thus providing nutrients for future crops. If they didn't do this, the soil would be depleted. They also rotated crops so that they didn't deplete the soil.

Hopefully this helps.

7 0

3 years ago

Josiah was managing a factory in India, and had a decision to make. The factory used child labor, which he disapproved of, but h

Marina CMI [18]

Answer: ethical dilemma

Explanation: In simple words, ethical dilemma refers to a condition in which an individual in authority have to make a choice of accepting one alternative over other in which none of the alternative is fully acceptable from the point of ethics.

In other words, it can be defined as a situation in which two principles of ethical psychology conflicts with each other. In these conditions, authority making the decision can never be fully ethical and have to give priority to one of the principles involved.

Hence from the above we can conclude that the given case depicts ethical dilemma.

5 0

4 years ago

Suppose the transfers of pillars to the Lantern Division cut into sales to outside customers by 14,000 units. Further suppose th

Sloan [31]

Complete question:

The Pillar Division of the Gothic Building Company produces basic pillars which can be sold to outside customers or sold to the Lantern Division of the Gothic Company. Last year, the Lantern Division bought all of its 25,000 pillars from Pillar at $2.00 each. The following data are available for last year's activities of the Pillar Division:

Capacity in units 320,000 pillars

Selling price per pillar to outside customers $2.05

Variable costs per pillar $1.20

Fixed costs, total $155,000

The total fixed costs would be the same for all the alternatives considered below.

Suppose the transfers of pillars to the Lantern Division cut into sales to outside customers by 20,000 units. Further suppose that an outside supplier is willing to provide the Lantern Division with basic pillars at $1.92 each. If the Lantern Division had chosen to buy all of its pillars from the outside supplier instead of the Pillar Division, the change in net operating income for the company as a whole would have been:

$2,000 decrease.

$14,000 increase.

$1,000 decrease.

$18,000 decrease.

I tried my best to find the question but was unable to find the exact question, instead I found a symmetry question and its solution is as under:

Answer:

Option D. $18,000 decrease

Explanation:

The decrease in the net operating income that would occur due to purchase of all of the pillars from the outside supplier would cost the additional cost to the company which is opportunity cost per pillar and is calculated by using the following formula:

Opportunity Cost = Variable Cost - Purchasing Cost

Here, the variable cost to manufacture the pillar within the factory is $1.2 per pillar whereas the purchasing cost of pillars from outside supplier is $1.92 per pillar.

By putting values, we have:

Opportunity Cost = $1.2 - $1.92 = $0.72

Now for purchasing 25,000 units from the supplier, the total opportunity cost would be:

Total Opportunity Cost = $0.72 * 25,000 Units Purchased from Outside Supplier = - $18,000

The minus sign shows the decrease in the net operating income.

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3 years ago