The government can be used to solve externality problem that are to costly for parties to solve THE ANSWER IS TRUE
Answer:
Cost of producing a unit of a good falls as its output increases.
Explanation:
Companies achieve economies of scale when their production costs per unit decrease as the company uses fewer inputs to produce one unit of product.
For example, a company produces 10,000 units with a total cost of $20,000 (cost of producing one unit is $2). If the company increases its total production to 15,000 units with a total cost of $25,000 (cost of producing one unit is $1.67).
Answer:
Accounting equation is stated as follows:
Assets = Liabilities + Stockholder's Equity
Transaction 1
Providing services will increase revenue, which will increase stockholder's equity. And since it is on account it will increase assets by the same amount = $39,000
Transaction 2
Cash received will increase cash in assets and will decrease accounts receivables in assets. Net effect = 0
Transaction 3
Purchase of equipment will increase equipment that is asset by $24,000 and further it is purchased through a note payable, it will increase liability with the same amount.
Transaction 4
This will decrease cash as paid in cash which will decrease assets, and further this will be expense for the period which will decrease the revenue and will decrease the stockholder's equity.
Answer:
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