Answer:
Production or consumption activities lead to an external cost for the third party, which causes the social marginal cost to exceed the private marginal cost. Consumers and producers base their decisions on private marginal cost and there would be an overproduction or excessive consumption of the good. The balance output is more than the efficient output.
Taxes must be imposed to correct the divergence between social and private marginal costs.
On the other hand, production or consumption leads to an external benefit for the third party, which means that the marginal social benefit exceeds the private marginal benefit. Consumers and producers base their decision on private marginal benefit and there would be underproduction or low consumption of the good. The balance output is less than the efficient output. The government would have to provide subsidies to producers or consumers to correct these inefficiencies.
Answer:
9,650 Units
Explanation:
The total unit transfer were 7,900 then we have to add the total units that are in Work in Process, which are +2.400+10.500-7.900 = 5.000, of that we have an advance of 35% of conversion cost, so we have 1.750 Units , Total Units = 7.900 + 1.750 = 9.650
Conversion
"Units transferred to the next department 7.900
Ending work in process:
Conversion:
Rest Of Units 5.000
Complete to conversion costs End 35% 1.750
Equivalent units of production 9.650
Answer:
External customer incentives
Explanation:
External customer incentives are similar to customer incentives. The phrase external distinguishes between internal customers or company employees and other customers who chose to buy the company's products.
Customer incentives are offers given to customers by a company to attract and retain them. Businesses use incentives to convert potential customers into paying clients. Discounts are an example of external customer incentives. They are used when a business faces competition from similar products by other companies. Business also offer end of the year, anniversary, and other seasonal discounts.
Answer:
At what price is revenue maximum?
- $13 and $12 per unit (maximum revenue $156,000)
What is the maximum revenue and how many sets of headphones should the company expect to sell?
Write your conclusions in a sentence.
- When the price is higher than $12 per unit, demand is elastic, which means any decrease in price will result in a larger proportional increase in quantity demanded. This in turn increases total revenue. Below $12 per unit, demand is inelastic, which means that a decrease in price will result in a smaller increase in quantity demanded.
Explanation:
price quantity demanded total revenue
$20 5000 $100000
$19 6000 $114000
$18 7000 $126000
$17 8000 $136000
$16 9000 $144000
$15 10000 $150000
$14 11000 $154000
<u>$13 12000 $156000
</u>
<u>$12 13000 $156000
</u>
$11 14000 $154000
$10 15000 $150000
$9 16000 $144000
$8 17000 $136000
$7 18000 $126000
$6 19000 $114000
$5 20000 $100000
$4 21000 $84000
3 22000 $66000
2 23000 $46000
1 24000 $24000
It estimates that after five years it can sell the equipment for $2,000. During year 2017, the band performs 55 concerts.
