Please help me I really need the answers :(

Which of the following situation would make transaction costs too high to negotiate and therefore the Coase Theorem would not ap

Lyrx [107]

Answer:

d. Many firms are working together to eliminate pollution

Explanation:

Coase theorem is a private solution for the two parties who agree to reduce externalities, i.e., pollution. They negotiate in such a manner that the costs are low as one party takes over other party's polluted assets to reduce pollution. When there are more parties or firms involved to eliminate pollution, it will pose high transaction costs. Therefore, the Coase theorem will not work in that case. So, the option "D" is the correct choice.

4 0

4 years ago

Cane company manufactures two products called alpha and beta that sell for $225 and $175, respectively. each product uses only o

tester [92]

Answer:

The special order should be rejected since it decreases net profit.

Explanation:

Alpha = $225

Beta = $175

total production capacity = 130,000 pounds

raw materials = $6 per pound

Production costs per unit Alpha Beta

direct materials $42 $24

direct labor $42 $32

variable manufacturing overhead $26 $24

fixed manufacturing overhead $34 $37

variable selling expenses $31 $27

<u>common fixed expenses $34 $29 </u>

total cost per unit $209 $173

Cane expects to sell 114,000 Alphas.

Net profit = (114,000 x $225) - (114,000 x $209) = $25,650,000 - $23,826,000 = $1,824,000

If the new sales order is accepted, Cane's revenue will increase to:

101,000 x $225 = $22,725,000
29,000 x $156 = $4,524,000
total = $27,249,000

Their total cost will by:

114,000* x $209 = $23,826,000
16,000 x ($209 - $34 avoidable fixed costs) = $2,800,000
total = $26,626,000

*This sale increases the output, but previous costs cannot be avoided.

Net profit with special order = $27,249,000 - $26,626,000 = $623,000

The special order should be rejected since it decreases net profit.

6 0

3 years ago

Imagine that you earned $8,425 in one year. If the government enforces a 15% income tax, how much money would you owe in taxes a

AleksandrR [38]

$7165.25 hope this help =]

3 0

3 years ago

Read 2 more answers

Alex and Bess have been in partnership for many years. The partners, who share profits and losses on a 70:30 basis, respectively

Usimov [2.4K]

Answer:

Alex and Bess Partnership

Part A: Step-by-step Distribution:

Cash Noncash assets Liabilities Alex Bess

December 31 $48,000 $135,000 $36,000 $94,500 $52,500

Safe cash

distribution (26,400) 0 0 (18,480) (7,920)

1st Liabilities (21,600) 0 (21,600) 0 0

Sale of noncash 147,000 (135,000) 8,400 3,600

Safe cash distrib. (100,000) (70,000) (30,000)

Final liabilities (14,400) 0 (14,400) 0 0

Liquidation expense (4,100) 0 (2,870) (1,230)

Final distribution (28,500) 0 (11,550) (16,950)

Part B: Final Statement of Partnership Liquidation:

Cash Noncash assets Liabilities Alex Bess

December 31 $48,000 $135,000 $36,000 $94,500 $52,500

Sale of noncash 147,000 (135,000) 8,400 3,600

Payment of liabilities (36,000) (36,000)

Liquidation expenses (4,100) 0 (2,870) (1,230)

Distribution (154,900) 0 0 (100,030) (54,870)

Explanation:

a) Data and Calculations:

Profits and losses sharing ratio = 70:30

Estimated liquidation expenses = $5,500

Balance Sheet at Liquidation Date:

Cash $48,000 Liabilities $36,000

Noncash assets 135,000 Alex, capital 94,500

Bess, capital 52,500

Total assets 183,000 Total liabilities and capital $ 183,000

3 0

3 years ago

In Da Houz is a bar which mostly plays trance music, and has a dedicated day every week for local bands to perform. In Da Houz t

Dmitry_Shevchenko [17]

Answer:

Direct marketing

Explanation:

In simple words, Direct marketing relates to the means of selling an deal, where companies specifically interact with a pre-selected client and provide a mechanism for veiled reference. It has also been recognized as direct reaction marketing amongst practitioners.

The least likely to be successful is indeed a direct marketing message that is sent to the largest possible public. After all, while simply irritating several other beneficiaries, the business can gain few more consumers.

5 0

3 years ago