21. A public park is a public good because:

a. it is both excludable and rival good.

b. it is excludable but non rival

c. it is non-excludable but rival

d. it is non-excludable and non-rival.

22. If there are 5 firms in the market each with 10% of the market share, and another 10 firms that have the remaining market split between them equally, we can say that C4 or Concentration Ratio is 55%.

True or False

23. Regulated monopolies THAT operate on cost plus pricing, may make some positive economic profit.

True or False

24.

A monopoly faces a demand curve like:

if it finds that it's MR = MC occurs at Q = 3, what is the profit that the firm will make?

a. 60

b. 20

c. There is insufficient information

d. 6.66

You are interested in finding a 98% confidence interval for the average commute that non-residential students have to their college. The data below show the number of commute miles for 10 randomly selected non-residential college students. Round answers to 3 decimal places where possible.

a. To compute the confidence interval use a

distribution.

b. With 98% confidence the population mean commute for non-residential college students is between and miles.

c. If many groups of 10 randomly selected non-residential college students are surveyed, then a different confidence interval would be produced from each group. About percent of these confidence intervals will contain the true population mean number of commute miles and about percent will not contain the true population mean number of commute miles.

On 31 December 20x8, A Ltd paid $330,000 to acquire 90% of B Ltd when the fair value of B Ltd’s net assets was represented by share capital of $100,000 and retained profit of $100,000, except for an unrecognized brand-name that is deemed to have a fair value of $100,000. On this date, B Ltd’s share capital comprised 100,000 ordinary shares with a fair value of $3.30 per share.

Assume the group policy is to measure non-controlling interest at acquisition date based on its proportionate share of the fair value of identifiable net assets of subsidiaries acquired. In A Ltd’s 20x8 consolidated statement of financial position:

Non-controlling interest = $

Goodwill on consolidation = $

Assume the group policy is to measure non-controlling interest at acquisition date based on its fair value. In A Ltd’s 20x8 consolidated statement of financial position:

Non-controlling interest = $

Goodwill on consolidation = $

You are interested in finding a 95% confidence interval for the average commute that non-residential students have to their college. The data below show the number of commute miles for 12 randomly selected non-residential college students. Round answers to 3 decimal places where possible. 8 7 25 13 23 26 6 6 6 28 8 12 a. To compute the confidence interval use a distribution. b. With 95% confidence the population mean commute for non-residential college students is between and miles. c. If many groups of 12 randomly selected non-residential college students are surveyed, then a different confidence interval would be produced from each group. About percent of these confidence intervals will contain the true population mean number of commute miles and about percent will not contain the true population mean number of commute miles.

You are interested in finding a 90% confidence interval for the average commute that non-residential students have to their college. The data below show the number of commute miles for 11 randomly selected non-residential college students. Round answers to 3 decimal places where possible. 25 21 26 6 25 14 26 24 7 10 14 a. To compute the confidence interval use a distribution. b. With 90% confidence the population mean commute for non-residential college students is between and miles. c. If many groups of 11 randomly selected non-residential college students are surveyed, then a different confidence interval would be produced from each group. About percent of these confidence intervals will contain the true population mean number of commute miles and about percent will not contain the true population mean number of commute miles.

Two types of consumers (boaters and non-boaters) share a community on the seaside. Boating accidents can be reduced by lighthouse services. The boaters combined inverse demand for the lighthouse is P = 60 − 6Q, and the non-boaters combined inverse demand is P = 20 − 2Q. The cost of providing lighthouse services to the community is TC = Q².

a) Briefly explain why lighthouse services can be considered a public good.

b) Find the optimal provision of lighthouse services (use Samuelson condition).

c) Suppose that no government provides lighthouses. The boaters decide to produce lighthouse services on their own. How much would they produce?

d) Suppose the boaters produce the amount in your answer to part c), and then ask the non-boaters to contribute remainder to get the optimal amount you found in part b). What would the non-boaters say?

Required information

[The following information applies to the questions displayed below.]

Arndt, Inc., reported the following for 2018 and 2019 ($ in millions):

1. Expenses each year include $40 million from a two-year casualty insurance policy purchased in 2018 for $80 million. The cost is tax deductible in 2018.
2. Expenses include $3 million insurance premiums each year for life insurance on key executives.
3. Arndt sells one-year subscriptions to a weekly journal. Subscription sales collected and taxable in 2018 and 2019 were $38 million and $67 million, respectively. Subscriptions included in 2018 and 2019 financial reporting revenues were $35 million ($13 million collected in 2017 but not recognized as revenue until 2018) and $43 million, respectively. Hint: View this as two temporary differences—one reversing in 2018; one originating in 2018.
4. 2018 expenses included a $29 million unrealized loss from reducing investments (classified as trading securities) to fair value. The investments were sold in 2019.
5. During 2017, accounting income included an estimated loss of $7 million from having accrued a loss contingency. The loss was paid in 2018 at which time it is tax deductible.
6. At January 1, 2018, Arndt had a deferred tax asset of $8 million and no deferred tax liability.

6. Suppose that during 2019, tax legislation was passed that will lower Arndt’s effective tax rate to 35% beginning in 2020. Prepare a schedule that reconciles the difference between pretax accounting income and taxable income. Using the schedule, prepare the necessary journal entry to record income taxes for 2019.

Suppose that during 2019, tax legislation was passed that will lower Arndt’s effective tax rate to 35% beginning in 2020. Prepare a schedule that reconciles the difference between pretax accounting income and taxable income. (Amounts to be deducted should be indicated with a minus sign. Enter your answers in millions (i.e., 10,000,000 should be entered as 10).)

Required information

[The following information applies to the questions displayed below.]

Arndt, Inc., reported the following for 2018 and 2019 ($ in millions):

1. Expenses each year include $40 million from a two-year casualty insurance policy purchased in 2018 for $80 million. The cost is tax deductible in 2018.
2. Expenses include $3 million insurance premiums each year for life insurance on key executives.
3. Arndt sells one-year subscriptions to a weekly journal. Subscription sales collected and taxable in 2018 and 2019 were $38 million and $67 million, respectively. Subscriptions included in 2018 and 2019 financial reporting revenues were $35 million ($13 million collected in 2017 but not recognized as revenue until 2018) and $43 million, respectively. Hint: View this as two temporary differences—one reversing in 2018; one originating in 2018.
4. 2018 expenses included a $29 million unrealized loss from reducing investments (classified as trading securities) to fair value. The investments were sold in 2019.
5. During 2017, accounting income included an estimated loss of $7 million from having accrued a loss contingency. The loss was paid in 2018 at which time it is tax deductible.
6. At January 1, 2018, Arndt had a deferred tax asset of $8 million and no deferred tax liability.

4. Prepare a schedule that reconciles the difference between pretax accounting income and taxable income. Using the schedule, prepare the necessary journal entry to record income taxes for 2019.

Prepare a schedule that reconciles the difference between pretax accounting income and taxable income. (Amounts to be deducted should be indicated with a minus sign. Enter your answers in millions (i.e., 10,000,000 should be entered as 10).)

5. Compute the deferred tax amounts that should be reported on the 2019 balance sheet. (Enter your answers in millions (i.e., 10,000,000 should be entered as 10).)

-With respect to chromosome content, which of the following cells will be most similar to a cell that is about to enter S phase?

A cell that has just completed meiosis II.

A cell just after mitosis.

A cell just before mitosis.

A cell that has just completed meiosis I.

-State two ways meiosis generates genetic variability.

-If you cross a parent with attached earlobes (recessive trait) with one that has free earlobes (dominant trait), what are ALL of the possible offspring phenotypic ratios?

3 free earlobes: 1 attached earlobes only

1 free: 0 attached or 1 free: 1 attached

1 free: 0 attached only

1 free: 3 attached only

-If you cross a heterozygous tongue roller with another heterozygous tongue roller, what are all of the possible offspring phenotypic ratios. Note: The ability to tongue roll is dominant to lacking the ability.

3 roller: 1 non-roller

1 roller: 0 non-roller

1 roller: 3 non-roller

1 roller: 0 non-roller or 1 free: 1 non-roller