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Anestetic [448]
2 years ago
7

uppose that an MBA degree creates no extemality because the benefits of an MBA are internalized by the student in the form of hi

gher wages. If there are no government subsidies for MBAs, then which of the following statements is correct? a. The equilibrium quantity of MBAs will equal the socially optimal quantity of MBAs. b. The equilibrium quantity of MBAs will be greater than the socially optimal quantity of MBAS. c. The equilibrium quantity of MBAs will be less than the socially optimal quantity of MBAs. d. There is not enough information to answer the question.
Business
1 answer:
Schach [20]2 years ago
7 0

Answer:

A) The equilibrium quantity of MBAs will equal the socially optimal quantity of MBAs.

Explanation:

No government subsidies, no government taxes, no government anything = free markets = capitalism = fantasy world

Pure capitalism doesn't exist (only semi capitalistic economies), since governments exist and they regulate the economy, tax and transfer money, and spend.

But in a fantasy world where governments do not exist, then the equilibrium quantity of any good or service equals the socially optimal quantity. That applies to every single product or service.  

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Someone who provides you with recommendations related to your money and investments would be called a...
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3 0
3 years ago
Decision Point: Your Final Meeting: RC Helicopter Piloting Radio controlled helicopter Your next client is Alan, who runs a high
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8 0
3 years ago
Lillich, Inc., manufactures and sells two products: Product U6 and Product R5. Data concerning the expected production of each p
Gelneren [198K]

Answer:

Lillich, Inc.

The unit product cost of Products U6 under activity-based costing is closest to:  $1,460

Explanation:

a) Data about expected production of Products U6 and R5:

                                  Expected       Direct Labor-Hours    Total Direct

                                 Production          Per Unit                 Labor-Hours  

Product U6                       640                    8.4                       5,376

Product R5                      1,015                    5.4                       5,481                    

Total direct labor-hours                                                        10,857

The direct labor rate is $27.50 per DLH.

Direct Materials Cost per Unit   Product U6$249.30  Product R5 $166.70

                                                         

Activity Cost Pools  Activity      Estimated           Expected Activity  

                              Measures   Overhead  Product U6  Product R5   Total

                                                    Cost      

Labor-related           DLHs      $ 196,138         5,376         5,481         10,857

Production orders    Orders       67,340           800           700           1,500

Order size                MHs        1,015,108        5,400         5,700          11,100  

                                            $1,278,586

Overhead Costs:

                                                Product U6      Product R5        Total

Labor-related overhead costs   $97,121             $99,017      $196,138

Production orders                        35,915               31,425         67,340

Order size                                 493,836             521,272      1,015,108

Manufacturing overheads     $626,872           $651,714   $1,278,586

The direct labor rate is $27.50 per DLH

                                                 Product U6      Product R5            Total

Expected Production                        640                 1,015

Direct labor hours                          5,376               5,481              10,857

Direct Materials Cost per Unit  $249.30           $166.70

Direct material costs               $159,552        $169,200.50     $328,752.50

Direct labor costs                       147,840           150,727.50       298,567.50

Manufacturing overhead         626,872            651,714.00      1,278,586.00

Total production costs          $934,264         $971,642.00   $1,905,906.00

Unit cost                                      $1,459.79          $957.28

5 0
2 years ago
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