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Tems11 [23]
3 years ago
12

Suppose that in a market for used cars, there are good used cars and bad used cars (lemons). Consumers are willing to pay as muc

h as $6,000 for a good used car but only $1,000 for a lemon. Sellers of good used cars value their cars at $5,000 each and sellers of lemons value their cars at $800 each. Buyers cannot tell if a used car is reliable or is a lemon. Based on this information, what is the likely outcome in the market for used cars
Business
1 answer:
Viktor [21]3 years ago
5 0

Answer:

Based on the given information, the mostly likely outcome in the market for used​ cars is, sellers of good used cars will drop out of the market.

Explanation:

From the above mentioned scenario, we can figure out that in the marker of used cars, good used cars have a higher pay and value as compared to the bad used cars. But when it comes to buyers, they cannot really make a differentiation between whether the used cars are well grounded or lemon. So in that case, there is a likelihood of dropping good used cars out of market. This is mainly because when buyers cannot judge the reliability of an item, chances are that the item will drop out.

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Generally, the payment of an accelerated death benefit is _______ to a recipient if the benefit payment is qualified.
IrinaK [193]

The correct answer is Tax free.

An Accelerated Death Benefit (ADB) enables the holder of a life insurance policy to obtain a portion of the death benefit from the insurer before passing away. The policyholder must typically have a terminal illness with a life expectancy of two years or fewer.

<h3>How are benefits for hastened death paid?</h3>

A lump amount may be provided as part of some hastened death benefits. With a benefit for a terminal disease, this happens more frequently. Payments for chronic illnesses are more frequently made. According to Schelhaas, some accelerated death benefit riders are simple because they pay a specific portion of the death benefit.

To know more about Insurance , visit: brainly.com/question/27822778

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8 0
2 years ago
The Duerr Company manufactures a single product. All raw materials used are traceable to specific units of product. Current info
Gemiola [76]

Answer:

Direct material used= $102,000

Cost of goods manufactured= $327,000

COGS= $347,000

Explanation:

<u>First, we need to calculate the cost of direct material used:</u>

Direct material used= beginning inventory + purchases - ending inventory

Direct material used= 28,000 + 105,000 - 31,000

Direct material used= $102,000

<u>Now, the cost of goods manufactured:</u>

cost of goods manufactured= beginning WIP + direct materials used + direct labor + allocated manufacturing overhead - Ending WIP

cost of goods manufactured= 40,000 + 102,000 + 130,000 + 105,000 - 50,000

cost of goods manufactured= $327,000

<u>Finally, the cost of goods sold:</u>

COGS= beginning finished inventory + cost of goods manufactured - ending finished inventory

COGS= 80,000 + 327,000 - 60,000

COGS= $347,000

6 0
3 years ago
The following information relates to last year's operations at the Legumes Division of Gervani Corporation: Minimum required rat
zaharov [31]

Answer:

$18,250

Explanation:

In this question, we are asked to calculate the net operating income for a division of a firm.

We proceed as follows;

Turnover=Sales/Average operating assets

Average operating assets=(730,000/2)=$365000

Return on investment=net operating income/Average operating assets

Hence Average operating assets=($365000*5%)

which is equal to

=$18250.

3 0
3 years ago
In classifying the kinds of projects an organization has in its portfolio, projects that are typically needed to support current
erastova [34]
Compliance (must do) projects.
6 0
3 years ago
Ariana withdrew $400,000 out of her personal savings account and used it to start her new Internet cafe. The savings account pay
Vikki [24]

Answer:

The Ariana's accounting profit for the year was $6,000

Explanation:  

Accounting Profit : The accounting profit is that profit which records the difference of total revenues and total direct cost.

Where,

Total revenues includes sales revenues

And total cost includes monetary cost, etc.

So,

Accounting profit = Total revenues - Total cost

where

Total revenues = 2,000 × $2.5 + 4,000 ×$2.5 = $15,000

Monetary cost = $9,000

So,

Accounting profit = $15000 - $9000 = $6,000

Hence, the Ariana's accounting profit for the year was $6,000

7 0
3 years ago
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