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Nikolay [14]
3 years ago
5

Consider two goods--one that generates external benefits and another that generates external costs. A competitive market economy

would tend to produce
Business
1 answer:
KiRa [710]3 years ago
5 0

Answer:

Produce more of the good that generates external cost and less of the good that creates external benefit.

Explanation:

External benefits refer to the situation where the benefit of production of goods or services goes to a third party that is not directly involved in the process of production.  

Similarly, external cost refers to the situation where the cost of production of goods and services is borne by a third party which is not directly involved in the process of production.  

A competitive market economy would tend to produce more of the good that generates external cost and less of the good that creates external benefit. This is because in case of external cost the private cost will be lower than social cost, so the firms will be able to produce more of the good.

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In personal ads, one study found that a man's _____ and a woman's _____ were the most important factor for determining how many
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Is this multiple choice?
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Product costs are always expensed in the period when they are incurred. (2pts) true false
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6 0
3 years ago
A company's board of directors votes to declare a cash dividend of $1.55 per share of common stock. The company has 31,000 share
Viktor [21]

Answer:

Total Amount of Cash Dividend = $39,525

Explanation:

We have the following details,

Issued shares are the number of shares issued by the company, it includes treasury stock that is shares purchased back by the company.

Outstanding shares = Issued shares - Treasury stock

Treasury stock does not have any right of dividend, as the shares are held by company itself, it will not pay dividend to itself.

Thus dividend to be paid = 25,500 \times $1.55 per share = $39,525

Authorized shares just represent the number of maximum shares a company can issue.

Total Amount of Cash Dividend = $39,525

8 0
3 years ago
Soundgarden Company sold 200 color laser copiers on July 10, 2020, for $4,000 apiece, together with a 1-year warranty. Maintenan
ziro4ka [17]

Answer:

Soundgarden Company

Journal Entries:

July 10, 2020:

Debit Cash Account (or Accounts Receivable) $800,000

Credit Sales Revenue $800,000

To record the sale of 200 copiers at $4,000 apiece.

July 10, 2020:

Debit Warranty Expense $66,000

Credit Warranty Liability $66,000

To record the estimated warranty maintenance on copiers sold.

December 31:

Debit Warranty Liability $17,000

Credit Inventory $17,000

To record actual warranty costs incurred.

Explanation:

Soundgarden should record these transactions according to the matching principle, whereby warranty expense is recognized in the period that matches the sale so that all expenses related to sales are recognized when the sales are recognized.  This is achieved by creating a warranty liability account after the sales and recording a warranty expense as the debit entry.  When actual warranty costs are incurred, the Soundgarden Company will debit the warranty liability and credit the inventory actual for the actual costs.

7 0
3 years ago
Llywelyn, Inc. reports the following information for​ July: Sales Revenue $ 1 comma 000 comma 000 Variable Costs 200 comma 000 O
trapecia [35]

Answer:

A. $ 420,000

Explanation:

We have to find the missing information

Sales revenues            1,000,000

variable cost              <u>    (200,000)</u>

Contribution Margin       800,000

Fixed Cost                <u>            X         </u>

Operating Income          380,000

Contribution margin - operating income = fixed cost

$800,000 - $380,000 = fixed cost

fixed cost =   $420,000

6 0
3 years ago
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