Answer:
Efficiency requires that one lighthouse is built since the willingness to pay of all the residents together is larger than the cost of providing the lighthouse
Explanation:
Since the lighthouse is a public good, according to the coase theorem, if the combined willingness to pay for the lighthouse of all of the people living on the islands is higher than the cost of the lighthouse, then a lighthouse should be built.
The total willingness to pay is:
The population willingness to pay is higher than the cost of building one lighthouse ($2000) but lower than the cost of building two lighthouses ($4000). Therefore, efficiency requires that one lighthouse is built since the willingness to pay of all the residents together is larger than the cost of providing the lighthouse.
Answer: Competitive type of the multi-divisional structure
Explanation:
Here, in this particular case, using the given information we can state that Transector Inc. is using the <em>competitive form of the multi-divisional corporate structure</em>. In this multi-divisional structure, there tends to lie one parent organization which usually consists of several different divisions and sub-divisions that are known to operate distinguished businesses. In legal terminology, the parent organization is known to own all the divisions, but they are also known to provide them with significant autonomy, in order for them to work independently.
Answer:
the cost of units transferred to the finished goods is $89,500
Explanation:
The computation of the cost of units transferred to the finished goods is shown below:
Cost of units transferred to finished goods
= Beginning WIP + Direct materials+ Direct labour + Applied overheads-Ending WIP
= $5,200 + $47,800 + $30,300 + $16,500 - $10,300
= $89,500
Hence, the cost of units transferred to the finished goods is $89,500
The correct answer for the question that is being presented above is this one: "Monopolistic competition." A market structure with a large number of sellers who make differentiated products is called monopolistic competition. Monopolistic Competition refers to a type of imperfect competition<span> such that many producers sell products that are differentiated from one another.</span>
Answer:
Journal entry.
Debit creditors account with $15,000 and credit company's sales account with $15,000
Being quarterly journal subscription paid in advance last year.
Explanation:
The advance subscription payments customers are taken as creditors of the company. The company owes them the service of mailing the quarterly journals to them. The total creditors payment ($45,000) will be recorded as credit entry in the books of the company's creditors account and as the company discharges the liability, the amount is passed to debit side of the creditor's account. We assume equal quarterly subscription amount, which will result in $15,000 for each quarter in a year.
