Answer:
D. When ITQs are used, no one has an incentive to cheat and exceed the quota.
Explanation:
As ITQs (individual transferable quotas) were initially created by the government to regulate an above all, social affair, which is related to the share in the total allowable catch of fish (species).
Since some of the fishermen have lower and some have higher marginal costs of "producing" fish, they trade ITQ's between themselves, with those who have high marginal costs selling ITQs to those that have low marginal costs. Also, the marginal private cost now becomes determined by the initial marginal private cost of the fish, plus the <u>price of the ITQ</u>. Then, it becomes known as the marginal social cost.
The equilibrium for the ITQ price is the difference between the <em>marginal social benefit</em> and the marginal cost. With the base marginal private cost becoming the marginal social cost, no one has the incentive to exceed the quota, as that would make the marginal cost go higher than the price, and the marginal profit lower. This notion creates the equality between self-interest and social interest.
Answer:
The firm will need additional revenue of $90,000 to earn normal profit(zero economic profit)
Explanation:
Normal profit equals zero economic profit or when total revenue equals
the addition of explicit cost and Implicit cost. Implicit cost is the opportunity cost.
Explicit cost = $200,000 + $75,000 + $30,000 + $20,000 + $35,000
=$360,000
Implicit cost is $90,000
Total revenue is $360,000
Normal profit = $360,000 - ($360,000 + $90,000)
$360,000 - $450,000
-$90,000.
This means the firm will need additional revenue of $90,000 to earn normal profit(zero economic profit)
Answer:
a. 19.750 b. 138.250
Explanation:
A. We divide 158.000 by 8 to get the amount per year
158.000/8= 19.750
- Amortization expense (Db) 19.750
- Accumulated amortization (Cr) 19.750
B. On the balance sheet at the end of the first year, we would subtract those 19.750 to the gross value of the patent and the value of the patent would be
158.000 - 19.750 = 138.250
<u><em>Net carrying amount of the patent:</em></u><em> 138.250</em>
It can be concluded that the Wheelz On Rent most likely
practices the concentrated marketing. Concentrated marketing is a type of
strategy in which the products are being made and produced because of a
specific segment of the population of the consumer of that they are likely to
be made for a specific segment.
One month; property manager will have to return her security deposit in one month after she moves out of the property.
More about security deposit:
Source of funds to pay tenant obligations owed to the landlord in the event of a breach of the rental or lease agreement. When a tenant fails to uphold their financial obligations under the terms of a rental or lease agreement, the landlord may be able to recover some of their financial losses from the security deposit.
If a tenant's creditworthiness affects the security deposit, the landlord must set clear and specific criteria for the various creditworthiness levels they consider when choosing tenants (such as credit scoring).
Additionally, each potential tenant who falls within each level of creditworthiness must pay the security deposit amount that has been established for that level.
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