According to the Coase theorem, private parties can solve the problem of externalities if a. the number of parties involved is sufficiently large. b. the cost of bargaining is small. c. property rights aren't clearly defined. d. the initial distribution of legal rights favors the person being adversely affected by the externality.

Answer:

b. the cost of bargaining is small.

Explanation:

The basic concepts behind the Coase Theorem is that conflicts can be solved regardless of the original rights and a solution that benefits all parties can be found as long as transaction costs (bargaining costs) are low or nonexistent, and the output of the negotiation process efficiently allocates resources. This theorem is useful when you are trying to find solutions to negative externalities.

Based on the following data for the current year, determine the accounts receivable turnover. Net sales on account during the year $550,000 Cost of merchandise sold during the year $350,000 Accounts receivable, beginning of year $35,000 Accounts receivable, end of year $25,000 Inventory, beginning of year $80,000 Inventory, end of year $125,000

Household purchases of durable goods $1,293 Household purchases of nondurable goods $1,717 Household purchases of services $301 Household purchases of new housing $704 Purchases of capital equipment $192 Inventory changes $374 Purchases of new structures $611 Depreciation $117 Salaries of government workers $1,422 Government expenditures on public works $553 Transfer payments $777 Foreign purchases of domestically produced goods $88 Domestic purchases of foreign goods $120 Note that depreciation is the value loss of the durable goods purchased before this year. What was country A's GDP in 2019

An insurance company is thinking about offering discounts on its life insurance policies to nonsmokers. As part of its analysis, it selects 200 men who are 50 years old and asks them if they smoke at least one pack of cigarettes per day, and if they have ever suffered from heart disease. The results indicate that 20 out of 80 smokers and 15 out of 120 nonsmokers suffer from heart disease. At 5% level of significance the conclusion is:

You need to turn $13,593 dollars into $18,359 dollars in 8 years. Assuming you make no extra deposits, what interest rate would you need from a bank in order to accomplish this

94. Averaging the deviations from the mean for a portfolio of securities will: A. compute the standard deviation. B. compute the variance. C. equal zero. D. equal the number of securities in the portfolio.

Kim's Bridal Shoppe has 11,400 shares of common stock outstanding at a price of $48 per share. It also has 275 shares of preferred stock outstanding at a price of $90 per share. There are 300 bonds outstanding that have a coupon rate of 6.7 percent paid semiannually. The bonds mature in 29 years, have a face value of $2,000, and sell at 108 percent of par. What is the capital structure weight of the common stock

Lakeshore Paints, Inc., operates a plant next to Clear Lake. The goals of the Clean Water Act include Select one: a. protecting fish and wildlife. b. all of the above. c. making water safe for boating. d. eliminating the discharge of anything into any water.

Service firms generally include which of the following as product or job costs: _________

a. Utilities
b. Direct labor wages
c. Supervisor salaries
d. Service firms do not track job costs

Joe is self-employed in a store that has a rental value of $500 a month which he pays, but he can vacate the building without giving notice. His other expenses are $100 a month for maintenance. He makes $25,000 a year on net sales (total revenue minus the wholesale cost of the product). If he quit his job and worked the same number of hours elsewhere at a job he liked equally well, he estimates that he could make $20,000 a year. No one else can be hired to work in the store. Joe should It is impossible to say with the information given in the problem. quit his job. work part-time. keep the job.

Jose opened a Premier account at City National Bank of Iowa with a minimum required deposit of
$1000. This bank advertised a rate of 1/2% on their Premier account with interest compounded quarterly.
After 5 years, what is the amount in the account?

Nathan Herrmann has completed the basic format to be used in preparing the statement of cash flows (indirect method) for CEO Consultants.Listed below in random order are line items to be included in the statement of cash flows.Purchase of equipment $ 229,000Increase in inventory 35,000Increase in prepaid rent 7,500Payment of dividends 31,000Depreciation expense 13,000Increase in accounts receivable 47,000Increase in accounts payable 15,000Loss on sale of land 12,000Net income 69,000Repayment of notes payable 49,000Cash received from the sale of land 7,500Issuance of common stock 241,000Prepare the statement of cash flows for CEO Consultants using the indirect method.

A physical count of supplies on hand at the end of May for Masters, Inc. indicated $1,253 of supplies on hand. The general ledger balance before any adjustment is $2,130. What is the adjusting entry for office supplies that should be recorded on May 31

A restaurant Soup4u uses 60 bags of tomatoes each month. The tomatoes are purchased from a supplier for a price of $80 per bag and an ordering cost of $20 per order. Soup4u's annual inventory holding cost percentage is 40%. Soup4u always uses economic order quantity for deciding how many tomato bags it should order. Which of the following will reduce their inventory to 1/3 of its current value without increasing their cost?
a) Reduction in ordering cost to 1/9 of it current value
b) Increasing holding cost to 9 times its current value
c) Reduction in ordering cost to 1/3 of it current value
d) Increasing holding cost to 3 times its current value

12. Which of the following statements are correct: A. Percentage ownership occurs with new issuance via rights offerings. B. Market value dilution occurs when the net present value of a project is negative. C. Market value dilution increases as the net present value of a project increases. D. Book value dilution has real impact on individual shareholders.

A company reports annual sales of $5 million, cost of goods sold of $2 million, inventory of $0.5 million, and net income of $0.75 million. What are the company's annual inventory turns?

a. 10
b. 4
c. 0.25
d. 0.1

Assuming a FICA tax rate of 8% on the first $100,000 in wages, and a federal income tax rate of 20% on all wages, what would be an employee's net pay for the year if he earned $120,000 for the year?

The following amounts were taken from the financial statements of Crane Company: 2017 2016 Total assets $790000 $900000 Net sales 680000 600000 Gross profit 300000 260000 Net income 54400 110000 Weighted average number of common shares outstanding 50000 50000 Market price of common stock $40 $36 The profit margin ratio for 2017 is

A coupon bond paying semiannual interest is reported as having an ask price of 122% of its $1,000 par value. If the last interest payment was made one month ago and the coupon rate is 5%, what is the invoice price of the bond

Left ventricular mass (LVM), determined from echocardiograms, is an important risk factor for subsequent cardiovascular disease. The researchers are interested in assessing whether LVM changes in children over a 4-year period. To help plan the main study, a pilot study is conducted where echocardiograms are obtained from 10 random children from the Bogalusa Heart Study at baseline and after 4 years of follow-up. The sample mean of LVM change over the 4-year study period is 18.9 g and the sample standard deviation is 26.4 g. For answering the questions (a) and (b) below, assume that the sample variance of LVM change in this pilot study is the true variance of LVM change in the population.(a). If the expected increase in LVM is 10 g, what is the power of such a study if a two-sided test is to be used with α = 0.05? (b). Since this is a pilot study, the main question of interest is how many subjects would be needed to detect an increase of 10 g in mean LVM over 4 years using a two-sided test with α = 0.05 and power = 80%? Suppose the researchers also want to get an idea of the true population variance σ 2 of LVM change in children over a 4-year period based on the pilot data. (c). Perform a hypothesis test to assess whether σ 2 is significantly different from 300. Use both critical-value and p-value methods. (d). Find a 95% confidence interval (CI) of σ 2 . Is the result consistent with that of (c)? Justify your answer.

Store A purchases cases of fertilizer for its lawn-care business from a supplier who charges Store A $30 per order and $50 per case. Each case consists of five bags of fertilizer. Store A needs 2000 bags of fertilizer a year. Store A's annual holding costs are 30%. If Store A's order quantity is 40 cases and its lowest inventory level is 0 cases, what is its average inventory level (in cases)

If a borrower can afford to make monthly principal and interest payments of 1000 and the lender will make a 30 year loan at 5 1/2%, or a 20 year loan at 4 1/2% what is the largest loan this buyer can afford

Suppose that all social programs simultaneously become more generous. In particular suppose that there is an increase in UI benefits, and also an increase in welfare benefits, which are represented in the DMP model as payments to everyone who is not in the labor force. What will be the effects on the unemployment rate, the vacancy rate, the labor force, the number of firms, the aggregate output, and the labor market tightness? Explain your results.

Calvin and Carolyn Coleman purchased a home in San Francisco, California, for $375,000 on October 1, 2014. Calvin obtained a job in Portland, Oregon, and on December 1, 2015, the Colemans sold their home in San Francisco for $800,000. How much of the gain must the Colemans recognize?

A company used straight-line depreciation for an item of equipment that cost $16,950, had a salvage value of $4,200, and had a five-year useful life. After depreciating the asset for three complete years, the salvage value was reduced to $1,860 and its total useful life was increased from 5 years to 6 years. Determine the amount of depreciation to be charged against the machine during each of the remaining years of its useful life:

Crane Company incurs the following costs to produce 8500 units of a subcomponent: Direct materials $7140 Direct labor 9605 Variable overhead 10710 Fixed overhead 16200 An outside supplier has offered to sell Crane the subcomponent for $2.85 a unit. If Crane could avoid $3000 of fixed overhead by accepting the offer, net income would increase (decrease) by $230. $(740). $(5465). $6230.

bear a coupon of 6 percent, payable semiannually. The bond matures in 20 years and has a $1,000 face value. Currently, the bond sells at $955. The yield to maturity (YTM) is

Objectives of AllocationSamantha and Rashida are planning a trip to Padre Island, Texas, during spring break. Members of the varsity volleyball team, they are looking forward to four days of beach volleyball and parasailing. They will drive Samantha's car and estimate that they will pay the following costs during the trip:Motel (4 nights at $145) $ 580Food (each) 150Gas in total 120Parasailing and equipment rental (each) 125They have reservations at the SeaScape Motel, which charges $115 per night for a single, $145 per night for a double, and an additional $10 per night if a rollaway $580 155 132 added to a double room. but thinks that four days of partying and relaxing on the beach would be a great way to unwind from the Samantha's little sister, Kallie, wants to go along. S rigors of school. She figures he isn't into sports that she could ride with Samantha and Rashida and share their room Required: 1. Using incremental costs only, what would it cost Kallie to accompany Samantha and Rashida? 2. Using the benefits-received method, what would it cost Kallie to go on the trip? If required, round your intermediate calculations and final answer to the nearest cent.

Multiple Choice Question 38 Vaughn, Inc. has 1000 shares of 5%, $10 par value, cumulative preferred stock and 63000 shares of $1 par value common stock outstanding at December 31, 2020. What is the annual dividend on the preferred stock

Suppose the working-age population of a fictional economy falls into the following categories: 30 are retired; 45 are stay-at-home parents; 120 are employed full time; 40 are employed part time; 25 are unemployed but are actively looking for employment; 15 are unemployed and are not actively looking for employment. The official unemployment rate as calculated by the BLS would be

In the United States, bank deposits up to a certain amount are insured by the FDIC.

True or false