Answer:
Debit
Explanation:
Rent Income is recorded by crediting the account. Cash is debited if cash is received. Rent Receivable is debited if it is to be collected at a later date.
Assume that Mahmood Corp. lends Ahmad $10,000 in exchange for a $10,000,
three-year note bearing interest at 10 percent annually. The market rate of interest for a
note of similar risk is also 8 percent.
1. What is the present value?
2. What the entry is at the date of lends?
3. Prepare the schedule of the loan?
4. What is the entry at the end of year?
Answer:
1) the present value of the note:
PV of face value = $10,000 / (1 + 8%)³ = $7,938.32
PV of interest payments = $1,000 x 2.5771 (PV annuity factor, 8%, 3 periods) = $2,577.10
PV of note = $10,515.42
2) Dr Notes receivable 10,515.42
Cr Cash 10,000
Cr Discount on notes receivable 515.42
3) assuming the loan was made January 2, 2021
Date Cash flow Discount Balance
January 2, 2021 -$10,000 $10,515.42
January 2, 2022 $1,000 $171.81 $10,343.61
January 2, 2023 $1,000 $171.81 $10,171.80
January 2, 2024 $11,000 $171.80 $0
4) December 31, accrued interest on notes receivable
Dr Interest receivable 1,000
Dr Discount on notes receivable 171.81
Cr Interest revenue 1,171.81
Entries for Issuing Bonds and Amortizing Premium by Straight-Line Method Smiley Corporation wholesales repair products to equipment manufacturers. On April 1, Year 1, Smiley Corporation issued $20,000,000 of five-year, 9% bonds at a market (effective) interest rate of 8%, receiving cash of $20,811,010. Interest is payable semiannually on April 1 and October 1.
a. Journalize the entry to record the issuance of bonds on April 1, Year 1. For a compound transaction, if an amount box does not require an entry, leave it blank.
b. Journalize the entry to record the first interest payment on October 1, Year 1, and amortization of bond premium for six months, using the straight-line method. (Round to the nearest dollar.) For a compound transaction, if an amount box does not require an entry, leave it blank.
c. Why was the company able to issue the bonds for $20,811,010 rather than for the face amount of $20,000,000?
The market rate of interest is the contract rate of interest.
Answer:
a. Journal Entry Debit Credit
Cash $20,811,010
Bonds Payable $20,000,000
Premium on Bonds Payable $811,010
(To record the issuance of bonds on April 1)
b. Journal Entry Debit Credit
Interest expense $818,899
Premium on Bonds payable $81,101
(811,010/5 * 6/12)
Cash $900,000
(To record the first interest payment on October 1,
Year 1, and amortization of bond premium)
c. Company can issue at price 20,811,010 instead of 20,000,000 because coupon rate of company is higher than the effective rate of interest so company is able to issue the bonds have been issued at a premium.
You form an alliance with a group of your coworkers at the office and agree that you will only discuss group-related matters at 1pm on Wednesdays. This is an example of a:
a. Group decision
b. Group dynamic
c. Group cohesiveness measure
d. Group Norm
Answer:
d. Group Norm
Explanation:
Group Norms are informal rules that generally discourage behaviors that impede the efficacy of a group and and encourage the group to work efficiently.
They are regulations that groups adopt that ensure some form of order and they are also a reflection of the expectation of members of the group should interact and work.
Here, agreeing that members of the group will only discuss group-related matters at 1pm on Wednesdays is an example of a Group Norm because;
1. It is an unwritten rule
2. It is majorly to ensure that order is maintained so that the purpose of the group remains undefeated.
What is the deference between research and report
The teams are concerned with
rotating tasks and assignments
amongst its members are
Select one:
a. Self concerned
b. Self motivated
c. Self styled
d. Self-managed
= Self-managed
Answer:
Self-managed
Explanation:
the answer is Self-managed
The teams are concerned with
rotating tasks and assignments
amongst its members are
Select one:
a. Self concerned
b. Self m
Define behavioral Economics and explain why it is different from traditional economics.
Answer:
Behavioral economics differs from traditional economics by incorporating insights from psychology. ... Behavioral economics assumes that the context in which a decision is made has an enormous effect on the decision or preference.
Hope this helps, have a wonderful day/night, and stay safe!
The following information is available for Robstown Corporation for 20Y8:
Inventories January 1 December 31
Materials $44,250 $31,700
Work in process 63,900 80,000
Finished goods 101,200 99,800
December 31
Advertising expense $ 400,000
Depreciation expense-office equipment 30,000
Depreciation expense-factory equipment 80,000
Direct labor 1,100,000
Heat, light, and power-factory 53,300
Indirect labor 115,000
Materials purchased 556,600
Office salaries expense 318,000
Property taxes-factory 40,000
Property taxes-office building 25,000
Rent expense-factory 27,000
Sales 3,850,000
Sales salaries expense 200,000
Supplies-factory 9,500
Miscellaneous costs-factory 11,400
Required:
A. Prepare the 20Y8 statement of cost of goods manufactured.*
B. Prepare the 20Y8 income statement.*
* Refer to the Labels and Amount Descriptions list provided for the exact wording of the answer choices for text entries. "Less" or "Plus" will automatically appear if it is required. Enter all amounts as positive numbers. Be sure to complete the statement heading.
Answer:
A. Statement of cost of goods manufactured for the year ended 20Y8
Beginning Work In Process $63,900
Add Manufacturing Costs :
Materials ($44,250 + $556,600 - $31,700) $569,150
Depreciation expense-factory equipment $80,000
Direct labor $1,100,000
Heat, light, and power-factory $53,300
Indirect labor $115,000
Property taxes-factory $40,000
Rent expense-factory $27,000
Supplies-factory $9,500
Miscellaneous costs-factory $11,400
$2,005,300
Less Ending Work In Process ($80,000)
Cost of Goods Manufactured $1,989,250
B. Income statement for the year ended 20Y8
Sales $3,850,000
Less Cost of Goods Sold
Opening Finished Goods $101,200
Add Cost of Goods Manufactured $1,989,250
Less Ending Finished Goods ($99,800) ($1,990,650)
Gross Profit $1,859,350
Less Operating Expenses
Advertising expense $400,000
Depreciation expense-office equipment $30,000
Office salaries expense $318,000
Property taxes-office building $25,000
Sales salaries expense $200,000 ($973,000)
Net Income $886,350
Explanation:
Part A
Statement of cost of goods manufactured is a summary of the cost incurred in the manufacturing process.
Cost of Goods Manufactured = Opening Work In Process + Total Manufacturing Costs - Closing Work In Process
Part B
Income Statement shows the profit earned during the reporting period
Profit = Gross Profit (Sales - Cost of Goods Sold) - Operating Expenses
When consumers study consumer behavior, they should come to make better decisions. Which of the following can be helpful in enlightening consumers?
A) Consequences associated with poor budget allocation.
B) The role of emotions in consumer decision making.
C) Avenues for seeking redress for unsatisfactory purchases.
D) The effect of the environment on consumer behavior.
E) All of the above.
Answer: E) All of the above.
Explanation:
All the topics listed above can be helpful in enlightening consumers. They need to know what happens when they make poor budgeting decisions so that they can avoid it. They also need to understand the emotions involved in consumer making so that they can avoid making emotional decisions if need be.
They need to know that they can as well as where they can report purchases that were unsatisfactory and they need to understand that the environment can influence consumer behaviour so that they can make wiser decisions.
What are the factors that affect individual productivity?
Answer:
The factors that affect individual productivity is described below in details.
Explanation:
Important Factors Influencing Employee Productivity:
Work Environment: An employee’s work conditions affect their attitude, energy, and overall production in your organization. Processes: Processes, or their inadequacy, has a tremendous influence on organizational potency.Goals: Clearly illustrated work goals are great for boosting potency levels because they’re dimensions of productivity themselves._____political activities include
complaining to one's supervisor,
bypassing the chain of command,
forming coalitions, obstructing
organizational politics, excessively
adhering to rules, developing
contacts outside the organization.
Select one:
a. Illegitimate
b. External
c. Internal
d. Legitimate
= Legitimate
Legitimate political activities include complaining to one's supervisor, bypassing the chain of command, forming coalitions, obstructing organizational politics, excessively adhering to rules, developing contacts outside the organization. Thus, the correct answer is option D.
What is legitimate political activities?In political science, legitimacy refers to the right and acceptance of a governing law or regime. Whereas authority refers to a specific position in an established government, legitimacy refers to a system of government—where government refers to a "sphere of influence." Political legitimacy is regarded as a fundamental requirement for governance, without which a government will face legislative deadlock(s) and collapse.
Under legitimate political activity, one can complain to the supervisor, and excessively adhere to rules and regulations. Forming coalitions is also allowed under this type of activity. One can also develop some contacts outside the organization.
Therefore, the correct answer is legitimate political activity.
To learn more about legitimate political activity, click here:
https://brainly.com/question/28170489
#SPJ2
Mr. Dorji is not working currently
because his skills are not relevant for the jobs available in the market. What category of unemployment would Dorji fall in?
Select one:
a. Cyclical Unemployment
b. Structural Unemployment
c. Seasonal unemployment
d. Frictional Unemployment
= Structural Unemployment
Answer:
b. Structural Unemployment
Explanation:
Structural unemployment exists due to a mismatch between jobseeker's skills and the currently available jobs in the market. This implies that the market has available job opportunities, but the current labor force may require retraining to take up the jobs effectively.
Advancements in technology may cause structural unemployment. In recent years, robots have been replacing unskilled workers. It means these workers must acquire skills through training to have a chance of getting hired elsewhere.
How are bonds a safer investment than stock?
A. Bonds are safer because they are loans with a guaranteed interest rate for return
B. Bonds are sager because they are paid with with taxes
C bonds are safer because they are paid by the stock market
D bonds are safer cause they qre assets with gauranteed return from the government
Can be mutiple answers
Answer: D and B
Explanation:
The stock market is where you invest where you want to and hope the money will grow bigger by the company growing bigger. Bonds are you paying a certain amount of money and the government will pay back a little back at a time so if the government doesn't pay which is very unlikely is the reason why bonds are safer.
What is a positive and what is a normative statement?
Answer:
normative statement: conclusions based on value judgments that cannot be tested
positive statement: conclusions based on logic and evidence that can be tested.
Hope that helps
Have a good day
. Explain the puropose of the project charter ? Explain 3 tools and techniques that can be used to develop it
Answer:
It provides a preliminary delineation of roles and responsibilities, outlines the project's key goals, identifies the main stakeholders, and defines the authority of the project manager. A project charter should: Contain the essence of the project. Provide a shared understanding of the project
Explanation:
Develop a Project Charter - Tools and Techniques
Expert Judgment: A crucial step in executing the project by taking opinions from subject matter experts, garnering valuable inputs and understanding the business case complexity related to the project. ...
Data Gathering. ...
Interpersonal and Team Skills. ...
Meetings.
Suppose you are an economist for Mattel, manufacturer of the doll Barbie, which was making an unsolicited bid to take over Hasbro, manufacturer of the doll G.I. Joe.
a. Would you argue that the relevant market is dolls, preschool toys, or all toys including video games? Why?
1. You would want the regulatory boards to see more competition, so you would argue that the relevant market is all toys, which is as broad as possible. This would make it less likely that the merger would violate merger guidelines.
2. You would want the regulatory boards to see more competition, so you would argue that the relevant market is all toys, which is as narrow as possible. This would make it less likely that the merger would violate merger guidelines.
3. You would want the regulatory boards to see more competition, so you would argue that the relevant market is dolls, which is as narrow as possible. This would make it less likely that the merger would violate merger guidelines.
4. You would want the regulatory boards to see more competition, so you would argue that the relevant market is dolls, which is as broad as possible. This would make it less likely that the merger would violate merger guidelines.
b. Would your answer change if you were working for Hasbro?
1. You would want to use the narrowest definition of the market, which would be dolls. This would make it less likely that the merger would violate merger guidelines.
2. You would want to use the narrowest definition of the market, which would be dolls. This would make it more likely that the merger would violate merger guidelines.
3. You would want to use the broadest definition of the market, which would be all toys. This would make it more likely that the merger would violate merger guidelines.
4. You would want to use the narrowest definition of the market, which would be all toys. This would make it less likely that the merger would violate merger guidelines.
Answer:
a. 1. You would want the regulatory boards to see more competition, so you would argue that the relevant market is all toys, which is as broad as possible. This would make it less likely that the merger would violate merger guidelines.
b. 2. You would want to use the narrowest definition of the market, which would be dolls. This would make it more likely that the merger would violate merger guidelines.
Explanation:
a. In order to avoid anti-trust laws, it would be best that Mattel convinces the authorities that the relevant category is all toys not just a subsection. This will show that the toys made by the new company would have a lot of competition from other toy makers across the board which would reduce their chances of being a monopoly and violate merger guidelines.
b. As the bid is unsolicited, Hasbro might want to defend against it. In which case their strategy should be the exact opposite of that of Mattel and they should try to convince the regulatory boards that they would be in the narrowest of markets which would be dolls. This would mean that the merger has a strong chance of leading to a monopoly and would violate merger guidelines.
There are 72,922 seats in Lambeau Field where the Green Bay Packers play football. The Packers have sold out their season tickets since 1960. There were about 70,000 people on the waiting list to buy season tickets in 2018. Packers tickets are a normal good. As a result of the economic recession in 2010 during which people's incomes decreased, the:________.
a. demand for Packers tickets decreased.
b. substitution effect changed the quantity demanded.
c. quantity demanded of Packers tickets decreased.
d. demand curve for Packers tickets shifted rightward.
Answer: quantity demanded of Packers tickets decreased.
Explanation:
First and foremost, we should note that normal goods are the goods that when the income of an individual rises, the individual will buy more and in a case whereby the income reduces, the person will buy less.
Therefore, during recession when people's incomes decreased, the quantity demanded of Packers tickets decreased as well
When workers are overqualified for their current jobs or can
find work only part-time, we refer to this as
Select one:
a. not in labor force.
b. discouraged workers
C. unemployed.
d. underemployed
= underemployed
Answer:
If the price of imports rose, caused by a change in the value
of the pound then the AS would shift to the:
Select one:
a. None of the above
b. right
C. left
d. vertically
= left
Explanation:
If the price of imports rose, caused by a change in the value
of the pound then the AS would shift to the:
Select one:
a. None of the above
b. rightIf the price of imports rose, caused by a change in the valueIf the price of imports rose, caused by a change in the value
of the pound then the AS would shift to the:
Select one:
a. None of the above
b. right
C. left
d. vertically
= leftIf the price of imports rose, caused by a change in the valueof the pound then the AS would shift to the:
Select one:a. None of the aboveb. rightC. leftd. vertically= leftIf the price of imports rose, caused by a change in the valueof the pound then the AS would shift to the:Select one:a. None of the aboveb. rightC. leftd. vertically= leftof the pound then the AS would shift to theSelect one:
a. None of the above
b. rightC. leftd. verticallyIf the price of imports rose, caused by a change in the valueof the pound then the AS would shift to the:
Select one:a. None of the aboveb. rightC. leftd. verticall= left= leftC. leftd. vertically= left
Answer:
It’s D
Explanation:
Labor Force is the sum of unemployed people
you wouldn’t be discouraged if you overqualify
your not unemployed when you still have a job
This question tests your understanding of the economics of a commodity tax. Assume that in each case the demand curve slopes down from top left to bottom right and the supply curve slopes up from bottom left to top right If the government halved a commodity tax, what would not always follow?
a. The quantity traded would increase
b. The price exclusive of commodity tax that sellers receive would rise.
c. The price inclusive of commodity tax that buyers pay would fall.
d. Tax revenue would increase.
Answer:
d. Tax revenue would increase.
Explanation:
When government halved commodity tax so they divided into two parts so it is use full them to manage it separately in two different parts. So when government needs more revenue they tax some commodity on their trade. So now government collects different taxes from different parties so their tax revenue increases by that decision.
Which of the following is punctuated correctly?
1) I need to know whether you are able to perform the following functions of the job, revising existing marketing materials, promoting the company at trade shows, and reaching potential customers through direct mail campaigns.
2) I need to know whether you are able to perform the following functions of the job; revising existing marketing materials, promoting the company at trade shows, and reaching potential customers through direct mail campaigns.
3) I need to know whether you are able to perform the following functions of the job: revising existing marketing materials, promoting the company at trade shows, and reaching potential customers through direct mail campaigns.
Answer:
The correctly punctuated is:
3) I need to know whether you are able to perform the following functions of the job: revising existing marketing materials, promoting the company at trade shows, and reaching potential customers through direct mail campaigns.
Explanation:
It has the colon at the right place, and the commas observe the standard Oxford Comma convention for making a list. Both colon and comma are punctuation marks that can be used in making a list. Usually, the colon is put after stating "the following," while commas separate one item from the other and are used when the items are three or more, with the last item started with a comma.
there’s 15 questions and this is 5.
Simone has a concave utility of wealth function, u(x). She is contemplating two prospects, Y and Z. EV(Z) > EV(Y). Which of the following statements is true?
a. Simone will necessarily prefer Z to Y.
b. Simone’s ranking of Y and Z cannot be determined without knowing the distribution of the outcomes that result in EV(Y) and EV(Z).
c. Simone will necessarily prefer Y to Z.
d. Because EV(Z) > EV(Y), EU(Z) > EU(Y), but that is not sufficient information to determine her preference ranking.
Answer:
b. Simone ranking of Y and Z cannot be determined without knowing the distribution of outcomes that result in EV(Y) and EV(Z).
Explanation:
The utility wealth function describes the satisfaction of a consumer by the consumption of real goods and services. The utility function of Simone cannot be determined without knowing the opportunity cost between Y and Z.
Diskind Corporation manufactures and sells a single product. The company uses units as the measure of activity in its budgets and performance reports. During October, the company budgeted for 6,700 units, but its actual level of activity was 6,650 units. The company has provided the following data concerning the formulas used in its budgeting and its actual results for October:
Data used in budgeting:
Fixed element
per month Variable element per unit
Revenue — $34.20
Direct labor $0 $6.20
Direct materials 0 13.80
Manufacturing overhead 37,000 1.70
Selling and administrative expenses 25,500 0.20
Total expenses
$62,500
$21.90
Actual results for October:
Revenue $228,900
Direct labor $41,130
Direct materials $93,235
Manufacturing overhead $43,500
Selling and administrative expenses $30,470
The direct materials in the flexible budget for October would be closest to:
A. $91,770
B. $93,965
C. $92,460
D. $93,055
Answer:
A. $91,770
Explanation:
The direct materials in the flexible budget for October:
Cost = Variable Cost + Fixed Cost
Variable Cost = Actual level of activity*Direct material Variable element per unit = 6,650 units * $13.80 = $91,770
Fixed Cost = $0
So, the direct materials in the flexible budget for October = $91,770 + 0 = $91,770.
During the year, the Senbet Discount Tire Company had gross sales of $1.14 million. The firm’s cost of goods sold and selling expenses were $533,000 and $223,000, respectively. The firm also had notes payable of $880,000. These notes carried an interest rate of 7 percent. Depreciation was $138,000. The firm’s tax rate was 35 percent.
What was the firm’s operating cash flow? (Do not round intermediate calculations. Enter your answer in dollars, not millions of dollars, e.g., 1,234,567. Round your answer to the nearest whole number, e.g., 32.)
Answer:
$319,460
Explanation:
Calculation for the firm’s operating cash flow
First step is to calculate EBIT and Taxes
Sales $1,140,000
Less Cost of goods sold 533,000
Less Selling costs 223,000
Less Depreciation 138,000
EBIT $246,000
Interest 61,600
(7%*$880,000)
Taxable income $184,400
(246,000-61,600)
TAXES 64,540
(35%*$184,400)
Now let calculate the firm’s operating cash flow using this formula
Operating cash flow = EBIT + Depreciation - Taxes
Let plug in the formula
Operating cash flow = $246,000 + $138,000 - $64,540
Operating cash flow = $319,460
Therefore the firm’s operating cash flow is $319,460
Loggers are much __________ likely to supply wood to the market if property rights are not enforced.
Classify the source of market failure in each case listed.
a. A house party plays music at a very high volume, disturbing other residents in the neighborhood.
b. A single public utilities company is responsible for supplying electricity for an entire state. As a result, the utilities company can set the price of electricity.
Answer:
Loggers are much more likely to supply wood to the market if property rights are not enforced.
When property rights are not well enforced, ownership of the resource is not well defined either. This will lead to more people taking advantage of the resource like the loggers above. They will supply more wood because the ownership of their resource source is not well defined.
Options for the 2 questions below are Market Failure or Externality.
a. A house party plays music at a very high volume, disturbing other residents in the neighborhood. EXTERNALITY.
This is a negative externality. Negative externalities are when third parties suffer negative consequences as a result of transactions that they are not a party to. The neighbors are not playing music but it is disturbing them.
b. A single public utilities company is responsible for supplying electricity for an entire state. As a result, the utilities company can set the price of electricity. MARKET POWER.
The Utility company is not facing competition in this state and so can set the price it wants. This can lead to market failure simply because the company would have too much market power.
what is micro economy
A new machine comes with 200 free service hours over the first year. Additional time costs $180 per hour. What are the average and marginal costs per hour for the following quantities?
a) 125.
b) 225.
c) 325.
Answer:
a) 0, 0
b) 180 per hour, 20per hour
c) 180 per hour , 69.2 per hour
Explanation:
We are to calculate the average and marginal costs per hour of the given value above
a) Given Number of hours is 125, but we are told that the new machine comes with 200 free service hours over the first year. Then MARGINAL COST= 0 because the service can be equal to 200hours and the given 125 hours is less than that.
then AVERAGE COST = ZERO
(b) we are Given 225 number of hours
Additional time costs is given as $180 per hour.
Then we have $180 per hour as MARGINAL COST.
Total cost can be calculated as
= [$180 × (225 - 200)]
=[ $180 ×25] = $4,500
Average cost can be calculated as
ratio of Total cost to Number of hours i.e $4,500/225
= 20per hour
C)we are Given 325 number of hours
Additional time costs is given as $180 per hour.
Then we have $180 per hour as MARGINAL COST.
Total cost can be calculated as
= [$180 × (235 - 200)]
=[ $180 ×125] = $22,500
Average cost can be calculated as
ratio of Total cost to Number of hours i.e $22,500/325
= 69.2per hour
Balance sheet and income statement data indicate the following:
$842,000
Bonds payable, 10% (due in two years)
Preferred 5% stock, $100 par (no change during year)
Common stock, $50 par (no change during year)
220,000
1,672,000
376,000
Income before income tax for year
Income tax for year
89,000
Common dividends paid
Preferred dividends paid
83,600
11,000
Based on the data presented, what is the times interest earned ratio (rounded to one decimal place)?
Oa. 7.9
Ob. 4.5
Oc. 3.5
Od. 5.5
Answer:
The correct option is d. 5.5.
Explanation:
Note: This question is not properly arranged. It is therefore rearranged before answering the question as follows:
Balance sheet and income statement data indicate the following:
Bonds payable, 10% (due in two years) $842,000
Preferred 5% stock, $100 par (no change during year) 220,000
Common stock, $50 par (no change during year) 1,672,000
Income before income tax for year 376,000
Income tax for year 89,000
Common dividends paid 83,600
Preferred dividends paid 11,000
Based on the data presented, what is the times interest earned ratio (rounded to one decimal place)?
Oa. 7.9
Ob. 4.5
Oc. 3.5
Od. 5.5
The explanation of the answer is now given as follows:
The times interest earned ratio can be calculated using the following formula:
Times interest earned ratio = EBIT / Interest expenses ................ (1)
Where;
Interest expenses = Bonds payable * 10% = $842,000 * 10% = $84,200
EBIT = Earnings before interest and taxes = Income before income tax for year + Interest expenses = $376,000 + $84,200 = $460,200
Substituting the values into equation (1), we have:
Times interest earned ratio = $460,200 / $84,200 = 5.46555819477435
Rounded to one decimal place, we have:
Times interest earned ratio = 5.5
Therefore, the correct option is d. 5.5.
There are hundreds of high school students in need of algebra tutoring services. Dozens of companies offer tutoring services, and they view the quality of the tutoring at the different companies to be largely the same.
Number of Firms (few, one, or many)
Types of product(differentiated, unique, anything, or standardized)
Entry (challenging, impossible, or easy)
Market model (perfect competition, monopoly, monopolistic competition, or oligopoly)
Answer:
Number of firms: many. There are dozens of companies offering tutoring services, so we can safely say that the number of firms in this market is many.
Types of product: standardized. Consumers of this market, who are the students, view the quality of all algebra tutoring companies as being essentially the same.
Entry: easy. The only requirement to enter this market is to be able to teach algebra, so as long as a person knows algebra, this person would in theory be able to enter the market.
Market model: perfect competition. The market of algebra tutoring services in this case is closest to perfect competition. Both buyers and sellers are plenty, so neither can excercise market power. The product offered is standardized, which means that each firm's tutoring service is a perfect substitute for the tutoring services of the other firms. Finally, barriers of entry and exit are almost non-existant.
what are the similarities between scientific theory and bureaucratic theory?
Answer:
The Scientific Theory is based on using data and human strengths to increase output, while the Bureaucratic management style focuses on hierarchies and tight job roles. Regardless of the organization, the goals remain the same across the board. Every organization strives to minimize costs, while maximizing output.
Megan and Susan are roommates. They spend most of their time studying (of course), but they leave some time for their favorite activities: making pizza and brewing root beer. Megan takes 5 hours to brew a gallon of root beer and 3 hours to make a pizza. Susan takes 8 hours to brew a gallon of root beer and 4 hours to make a pizza.
Megan's opportunity cost of making a pizza is (1/2 gallon, 2 gallon, 3/5 gallon, 1 2/3 gallon) of root beer, and Susan's opportunity cost of making a pizza is (1/2 gallon, 2 gallon, 3/5 gallon, 1 2/3 gallon) of root beer.
(Megan/Susan) has an absolute advantage in making pizza, and (Megan/Susan) has a comparative advantage in making pizza.
If Megan and Susan trade foods with each other, (Megan/Susan) will trade away pizza in exchange for root beer.
The price of pizza can be expressed in terms of gallons of root beer. The highest price at which pizza can be traded that would make both roommates better off is (1/2 gallon, 2 gallon, 3/5 gallon, 1 2/3 gallon) of root beer, and the lowest price that makes both roommates better off is (1/2 gallon, 2 gallon, 3/5 gallon, 1 2/3 gallon) of root beer per pizza.
Answer and Explanation:
The opportunity cost of megan for making pizza would be equivalent to the root amount as she make 1 pizza in 3 hours and in 5 hours she produced 1 boot beer so in one hour she produced 1 by 5th So for 3 hours it produced 3 by 5 so the opportunity cost would be 3 by 5 root beer gallon
Likewise for susan it produced 4 by 8 i..e 1 by 2 root beer gallons
By the above calculation the megan has the absolute advantage as megan takes lesser hours i.e. 3 hours while susan takes 4 hours
And, the susan has the comparative advantage as it contains the less opportunity cost i.e 1 by 2 as compared with megan i.e. 3 by 5
Also in the case of trade off susan would trade away as she has the comparative advantage
The highest price would be better off by 3 by 5 gallon
And, the lowest price is 1 by 2
