Answer:
Individual firms and workers are wage takers because they cannot exert any control over the market wage rate.
Explanation:
Remember, a labor market shows the availability of employment and labor, in terms of their supply and demand.
This scenario occurs in a purely competitive labor market.
In this market there many qualified workers with identical skills; meaning the workers share similar skills while the demand for such skills is high because of their importance to firms.
Answer:
1. <u>implicit cost</u>
2.<u> explicit cost</u>
3. <u>implicit cost</u>
4. <u>explicit cost</u>
Explanation:
Implicit costs refer to those costs that represent opportunity cost. In simple terms they are notional or those which haven't been actually incurred but considered.
Opportunity costs refer to the cost of sacrificed alternatives when an alternative is opted for. For instance, a student pursuing post graduation incurs implicit cost in the form of income foregone had he chosen to work instead for the same duration.
In the given case, the foregone rental income Jacques would've earned had he chosen to rent out his showroom represents opportunity cost or implicit cost.
Similarly, the salary Jacques sacrificed by working in boat business represents implicit cost.
The wages and utility bills that Jacques pays and wholesale cost which he pays represent costs which have actually been incurred, which are termed as explicit costs.
Answer: A
Preferred share dividends are distributions of profits and not interest payments. Thus not tax-deductible.
This transaction is called account allowance. Account allowance
includes two kinds of transactions – to reduce in the folio balance
compensation for poor service and the other one is to correct posting mistakes
after the close of business. This kind of transaction is recognized by the usage
of an allowance voucher, allowance vouchers are typically necessitate
management endorsement.
