A coase solution to a problem of externality ensures that a socially efficient outcome is to maximize the joint welfare, irrespective of the right of ownership.
Explanation:
In law and in economics the Coase theorem explains the economic efficiencies in the existence of externalities. The economic efficiency of economic allocation or outcome. In practice, barriers to negotiation or poorly defined rights of property can prevent coasean negotiations.
The private external solutions include, for the benefit of the relevant parties, moral codes, charities and business fusions and contracts. In the theorem, two parties can bargain and obtain an optimal outcome in the presence of an externality when transaction cost is low.
Answer:
3. $600
Explanation:
The computation of the amount is shown below:
= Beginning balance of supplies + purchase made - supplies on hand
= $200 + $800 - $400
= $600
The year end increase in toy making supplies expense is $600
The journal entry would be
Supplies expense A/c Dr $600
To supplies A/c $600
(Being supplies account is adjusted)
The answer to the question asked above are <span> self-interest, competition, and supply and demand, it was noted for having the capaility of allocating resources in society.</span>
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Answer:
$117,201
Explanation:
Calculation for what The cost basis recorded in the buyer's accounting records to recognize this purchase is
Using this formula
Cost basis=Cash+Note payable+Mortgage
Let plug in the formula
Cost basis=$32,829+$26,957+$57,415
Cost basis=$117,201
Therefore The cost basis recorded in the buyer's accounting records to recognize this purchase is $117,201
Answer:
d. $757,991.26
Explanation:
Present value of inflows=cash inflow*Present value of discounting factor(rate%,time period)
= (325,000/1.10) + (425,000/1.10^2) + (450,000/1.10^3) + (400,000/1.10^4)
= $1,257,991.25743
NPV = Present value of inflows - Present value of outflows
NPV = $1,257,991.25743 - $500,000
NPV = 757991.25743
NPV = $757,991.26
