The market mechanism benefits society by ensuring that: <span>scarce resources are channeled into products most desired by society
Market mechanism determines which products stays or go by relying purely on the force of supply and demand. If the products are desired by the customers, the producer will always keep up with the demand in order to rake in the potential profit.</span>
Answer:
player 2 is signing a better contract
Explanation:
the present value of an annuity (player 1) = annual payment x annuity factor
assuming that the interest rate is 10%
present value = $10 million x 6.1446 (PV annuity factor, 10%, 10 periods) = $61.446 million
player 2's contract
the present value of a growing annuity = [payment / (i - g)] x {1 - [(1 + g) / (1 + i)]ⁿ} = [$10 / (10% - 5%)] x {1 - [(1 + 5%) / (1 + 10%)]¹⁰} = $200 x 0.372 = $74.398 million
Answer:
d. Willis breached the contract, but the breach was not material.
Explanation:
Willis agree to built a new home for Robert. The contract price was $300,000. Robert specified the features for the new home and since he is very picky he did not wanted to compromise on the specification he decided. Willis made a mistake and faucets and linoleum flooring are not exactly what Robert specified. The amount required to put the faucet back to its condition which Robert specified is $300 which is 1 percent of the total contract amount. The amount of breach is not material but Willis has breached the contact with Robert.
Answer:
The application of skill and knowledge with reasonable care and diligence
Explanation:
Competence is a part of Article IV- Due Care under the AICPA code of professional conduct. Competence is necessary to render the professional service without calling into question. It represents the application and maintenance of perceiving experience that supports a professional member to render a service with extreme knowledge, facility, and professionalism. Therefore, the answer choice B is the correct option.