1answer.
Ask question
Login Signup
Ask question
All categories
  • English
  • Mathematics
  • Social Studies
  • Business
  • History
  • Health
  • Geography
  • Biology
  • Physics
  • Chemistry
  • Computers and Technology
  • Arts
  • World Languages
  • Spanish
  • French
  • German
  • Advanced Placement (AP)
  • SAT
  • Medicine
  • Law
  • Engineering
Degger [83]
3 years ago
13

.Academic studies suggest that the amount people tip at restaurants is only slightly related to the quality of service, and that

tips are poor measures of how happy people are with their service. Is this an example of market failure? CHOOSE ONE:
No, market failure only exists when a company produces too little of a good or service. The organizations are providing the service; consumers just choose not to tip the workers accordingly.

Yes the consumers tend to tip based on thier mood at the time or whether they have enough money

No if this were a form of market failure, the government would stop allowing people to tip individuals for thier services.

Yes this could be considered a form of market failure. If consumers and markets were rational tips would be based on the quality of service.
Business
1 answer:
AlexFokin [52]3 years ago
3 0

There are various forms of market failure, though it is commonly defined in economics as a situation where the distribution of goods and service are conducted in an inefficient manner.

In the case illustrated in the question, the form of market failure that is taking place occurs in the nature of the exchange, which is due to bounded rationality. It is defined as condition commonly occurring in individuals where decision-making is based on making a satisfactory solution instead of an optimal one – this leads to irrational behaviors. A good example is the tipping behavior provided in the question.

Thus, the answer to the question is (D) Yes this could be considered a form of market failure. If consumers and markets were rational tips would be based on the quality of service.

You might be interested in
Cash and Carry is a store that carries food, clothing, and household goods at lower price margins than other nearby stores. Ther
bagirrra123 [75]

Answer: Discount store

Explanation: As the name suggests, discount store is the store in which the prices of general products are lower than other retail shops.

            These stores makes it possible to provide such discounts by purchasing in bulk from the intermediary, or direct purchase from the producer or by cutting the cost of other services provided.

So, from the above we can conclude that cash and carry is a discount store.

7 0
3 years ago
Sales revenue$ 4,000Purchases of direct materials$ 400Direct labor$ 450Manufacturing overhead$ 620Operating expenses$ 650Beginni
dlinn [17]

Answer:

The correct answer is D: $1900

Explanation:

Giving the following information:

Sales revenue$ 4,000

Purchases of direct materials$ 400

Direct labor$ 450

Manufacturing overhead $ 620

Operating expenses$ 650

Beginning raw materials inventory$ 200

Ending raw materials inventory$ 180

Beginning work in process inventory$ 320

Ending work in process inventory$ 410

Beginning finished goods inventory$ 250

Ending finished goods inventory$ 200

First, we need to calculate the cost of goods manufactured:

cost of goods manufactured= beginning work in process + direct materials + direct labor + manufacturing overhead - ending work in process

Direct materials= beginning inventory + purchase - ending inventory= 200 + 400 - 180= 420

cost of goods manufactured= 320 + 420 + 450 + 620 - 410= $1400

Now, we can calculate the cost of goods sold:

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

COGS= 250 + 1400 - 200= 1450

Operating income= sales  - COGS - operating expenses

Operating income= 4000 - 1450 - 650= $1900

3 0
3 years ago
Complete the following statement. The purpose of the closing process is to reset _________ (temporary/permanent) account balance
frez [133]

Answer:

The correct answer is temporary/earnings

Explanation:

The objective of the accounting closing is to evaluate the benefits or losses of a business activity. In other words, if the final result is positive, there is an increase in business equity, and if the final result is negative, there is a decrease in company equity.

Finally, in the accounting closing, a series of steps are carried out: the accounting regularization, the determination of the result, the closing of accounts and the presentation of annual accounts.

In conclusion, in the accounting cycle a period of time is contemplated and a set of operations and procedures are carried out in order to reflect the financial status of a company.

4 0
3 years ago
Read 2 more answers
Not ah question but add : adore.aaliyahh_
Step2247 [10]
is this ur sn8pchat or what
4 0
3 years ago
Ambiguity can arise as to whether receivables have been sold or instead are being used as collateral for a loan whenever certain
victus00 [196]

Answer:

is whether the transferor surrenders control over the receivables

Explanation:

In Sales of Receivables and Collateralized Borrowing,.companies do not want to wait for payments to arrive as they simply quickens cash collection with help of bank or financing company and also factoring and collateralized borrowings are various means to speed up cash collections. In Collateralized borrowing, receivables are simply collateral. Company gets cash from bank and is saddle with the responsibility for repaying loan.

Issues regarding collateralized borrowing are the sales of receivables had the purchaser is called a factor, borrowing using receivables as collateral and accounts receivable is not wipe off from seller's books.

6 0
3 years ago
Other questions:
  • Which of the following indicates that the functional currency of a foreign subsidiary is the US dollar? Group of answer choices
    11·1 answer
  • If a material error is discovered in an accounting period subsequent to the period in which the error is made:
    14·1 answer
  • Jean Piaget's use of the term "operational" is most aligned with the concept of ________.
    7·2 answers
  • The principle of diversification tells us that:
    5·1 answer
  • Scrappers Supplies tracks the number of units purchased and sold throughout each accounting period but applies its inventory cos
    12·1 answer
  • What is a buying plan and why is it important?
    10·1 answer
  • Country A and Country B have had an informal trading arrangement for many years wherein merchants on the border of the countries
    10·1 answer
  • Consider how health insurance affects the quantity of healthcare services performed. Suppose that the typical medical procedure
    15·1 answer
  • At which event must special care be taken when prepping food for your guest
    14·1 answer
  • Will mark brainliest please help!!!
    14·1 answer
Add answer
Login
Not registered? Fast signup
Signup
Login Signup
Ask question!