Answer:
Intuition.
Explanation:
Simon is acting on intuition in his response to Jorge. Here Simon says that "My gut feeling is to say yes because of my experience in the past and what I have seen other companies do over the years, both successful and not."
This depicts that he had an intuition thought about success of adding snow removal as an extra service. This was purely based on his intuition and previous experience of over 40 years.
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.
Answer:
Bourne Inc.
Journal entries
Date Account Name Debit Credit
1-Dec Supplies $2,000
Accounts Payable $2,000
1-Dec Cash $6,000
Deferred Revenue $6,000
1-Dec Land $40,000
Notes Payable $40,000
15-Dec Accounts Payable $2,000
Cash $2,000
Adjusting entries
Date Account Name Debit Credit
31-Dec Supplies expense $1,900
($700 + $2,000 - $800)
Supplies $1,900
31-Dec Deferred Revenue $1,000
($6,000/6)
Service Revenue $1,000
31-Dec Interest expense $400
($40,000*12%* 1/12)
Interest Payable $400
Answer:
The answer is: The current share price is $47.96.
Explanation:
The current share price is equal to the present value of its expected dividend stream discounting at required return rate of 16%.
We have the dividend stream as followed:
Year 1: $22.00; Year 2:$10.00; Year 3: $8.20; Year 4: $2.80; Year 5: $2.80 * 1.05 = $2,94 and will be growing at 5% constantly afterward ( as dividend will be growing at 5% per year from Year 4 afterward).
So, the current share price is equal to:
22/1.16 + 10/1.16^2 + 8.2/1.16^3 + 2.8/1.16^4 + [Present value as at the end of year 4 of growing perpetuity which is dividend payment after year 4] / 1.16^4 = 33.20 + [ 2.94 / ( 16% - 5%) ] /1.16^4 = $47.96.
So, the current share price is $47.96.
Answer:
continuing resolutiom
Explanation:,
A continuing resolution is a kind of appropriations legislation.
An appropriations bill is a bill sets aside for money to specific federal government agencies, departments, and programs. The money makes funds available for operations, personnel, zctivities and equipments.
A continuing resolution, or “CR,” is a temporary solution that Congress can use to fund the federal government for a limited amount of time. Continuing resolutions are often used to avoid a government shutdown and give lawmakers more time to enact the appropriation bills that are necessary to fund the federal government for the full fiscal year.ontinuing resolutions typically provide funding at basically the same rate as the previous year's funding. In a continuing resolution there can be changes in some of the accounts.
Continuing resolution show cases the failure of lawmakers to reach agreement on some or all appropriation bills for a full fiscal year. Funding the government for a full year is preferable to using a continuing resolution,this allows government agencies to plan appropriately and match their resources with their responsibilities