Published “The Nature of the Firm” According to Coase's Theory of the firm, firms exist because going to the market all the time can impose heavy transaction costs.<span>Firms exist to economize on the cost of coordinating economic activity.
</span><span>Increasing marginal costs of organizing more transactions within the firm and <span>decreasing returns of managerial ability (knowledge, computation limits..) are the boundaries of the firm.</span></span>
Answer:
Kristie reports the following income from KKM during the current tax year: (A) $54,000 ordinary income; $9,000 charitable contribution.
Explanation:
From the provided data;
KKM's net ordinary income = $180,000 ($280,000 ordinary income - $80,000 of office expenses - $20,000 payment to Kaylyn).
Since the cash distributions to Kaylyn and Megan are not deductible.
Kristie's share of this income is equal to
30% of KKM's net ordinary income
= 30% 0f $180,000
= $54,000.
In addition, Kristie reports 30% of partnership charitable contribution
= 30% of $30,000
= $9,000 of her share of the partnership's charitable contribution.
Therefore, Kristie reports the following income from KKM during the current tax year: $54,000 ordinary income; $9,000 charitable contribution.
Answer:
The usefulness benefits that a consumer receives from buying and using products or services is called utility... so it's B). ♡ hope this helps ♡
Answer:
examine how firms complete in a given industry
