1. The Public Good Problem A national park that costs MC = 80 dollars to provide to society has been privatized and handed over to a private firm; the firm is mandated to price at marginal cost. There are two types of consumers, a group of high demand consumers (group A) that have an aggregate demand function equal to MB = 100 – Q, and a low demand group of consumers (group B) with aggregate demand equal to MB = 50 – Q, where Q is thousands of acres.

A. How many acres will be provided by the firm when pricing at MC, assuming that the low-demand group will free-ride on the high-demand group?

B. What is the aggregate demand curve for the national park? (Hint: the aggregate demand curve for a public good is the vertical aggregation of the individual demand curves.)

C. Calculate the aggregate consumer surplus for the two types of consumers when the firm prices at MC. (Hint: in this case, the group B is free riding, and they can gain extra consumer surplus)

D. If the national park is provided by the government, how many acres SHOULD be provided?

1. The Public Good Problem

A national park that costs MC = 80 dollars to provide to society has been

privatized and handed over to a private firm; the firm is mandated to price at

marginal cost. There are two types of consumers, a group of high demand

consumers (group A) that have an aggregate demand function equal to MB = 100 –

Q, and a low demand group of consumers (group B) with aggregate demand equal to

MB = 50 – Q, where Q is thousands of acres.

1. How many acres will be provided by the firm when pricing at MC, assuming that the low-demand group will free-ride on the high-demand group?

2. What is the aggregate demand curve for the national park? (Hint: the aggregate demand curve for a public good is the vertical aggregation of the individual demand curves.)

3. Calculate the aggregate consumer surplus for the two types of consumers when the firm prices at M (Hint: in this case, the group B is free riding, and they can gain extra consumer surplus)

4. If the national park is provided by the government, how many acres SHOULD be provided?

On March 1, 2018, Beldon Corporation purchased land as a factory site for $72,000. An old building on the property was demolished, and construction began on a new building that was completed on December 15, 2018. Costs incurred during this period are listed below:

Salvaged materials resulting from the demolition of the old building were sold for $3,200.

Required:
Determine the amounts that Beldon should capitalize as the cost of the land and the new building.

Determine the amounts that Beldon should capitalize as the cost of the land. (Amounts to be deducted should be indicated with a minus sign.)

Determine the amounts that Beldon should capitalize as the cost of the new building.

1-As a hotel owner what are the advantages and disadvantages of using a management company?

2-What are the issues GM's must address when operating a hotel for a management company?

In a survey of 529 travelers, 386 said that location was very important and 323 said that room quality was very important in choosing a hotel.

1. Construct a 90% confidence interval estimate for the population proportion of travelers who said that location was very important for choosing a hotel.
2. Construct a 90% confidence interval estimate for the population proportion of travelers who said that room quality was very important for choosing a hotel.

"The Role of the Room Rate" Analyze the hotel market in your state and determine if the room rates for the majority of hotels is elastic or inelastic. Explain your rationale and identify contributing factors (e.g., tax rates, competition, etc.). Imagine opening a small hotel in the town in which you attend class, Briefly describe the hotel and determine how you would determine the proper room rate.

New York City is the most expensive city in the United States for lodging. The mean hotel room rate is $204 per night.† Assume that room rates are normally distributed with a standard deviation of $55.

(a)

What is the probability that a hotel room costs $245 or more per night? (Round your answer to four decimal places.)

(b)

What is the probability that a hotel room costs less than $120 per night? (Round your answer to four decimal places.)

(c)

What is the probability that a hotel room costs between $210 and $300 per night? (Round your answer to four decimal places.)

During the current year, Kingbird Construction trades an old crane that has a book value of $127,800 (original cost $198,800 less accumulated depreciation $71,000) for a new crane from Oriole Manufacturing Co. The new crane cost Oriole $234,300 to manufacture and is classified as inventory. The following information is also available.

Kingbird Const.
Oriole Mfg. Co.
Fair value of old crane $116,440
Fair value of new crane $284,000
Cash paid 167,560
Cash received 167,560

Assuming that this exchange is considered to have commercial substance, prepare the journal entries on the books of (1) Kingbird Construction and (2) Oriole Manufacturing. (Credit account titles are automatically indented when amount is entered. Do not indent manually. If no entry is required, select "No Entry" for the account titles and enter 0 for the amounts.)

No.
Account Titles and Explanation
Debit
Credit
1.
Kingbird Construction
2.
Oriole Manufacturing
(To record exchange of inventory)
(To record cost of inventory)

SHOW LIST OF ACCOUNTS
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Assuming that this exchange lacks commercial substance for Kingbird, prepare the journal entries on the books of (1) Kingbird Construction and (2) Oriole Manufacturing. (Credit account titles are automatically indented when amount is entered. Do not indent manually. If no entry is required, select "No Entry" for the account titles and enter 0 for the amounts.)

No.
Account Titles and Explanation
Debit
Credit
1.
Kingbird Construction
2.
Oriole Manufacturing
(To record exchange of inventory)
(To record cost of inventory)

SHOW LIST OF ACCOUNTS
LINK TO TEXT

Assuming the same facts as those in (a), except that the fair value of the old crane is $139,160 and the cash paid is $144,840, prepare the journal entries on the books of (1) Kingbird Construction and (2) Oriole Manufacturing. (Credit account titles are automatically indented when amount is entered. Do not indent manually. If no entry is required, select "No Entry" for the account titles and enter 0 for the amounts.)

No.
Account Titles and Explanation
Debit
Credit
1.
Kingbird Construction
2.
Oriole Manufacturing
(To record exchange of inventory)
(To record cost of inventory)

SHOW LIST OF ACCOUNTS
LINK TO TEXT

Assuming the same facts as those in (b), except that the fair value of the old crane is $137,740 and the cash paid $146,260, prepare the journal entries on the books of (1) Kingbird Construction and (2) Oriole Manufacturing. (Credit account titles are automatically indented when amount is entered. Do not indent manually. If no entry is required, select "No Entry" for the account titles and enter 0 for the amounts.)

No.
Account Titles and Explanation
Debit
Credit
1.
Kingbird Construction
2.
Oriole Manufacturing
(To record exchange of inventory)
(To record cost of inventory)

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In 2018, the Westgate Construction Company entered into a contract to construct a road for Santa Clara County for $10,000,000. The road was completed in 2020. Information related to the contract is as follows:

Westgate recognizes revenue over time according to percentage of completion.

Required:

1. Calculate the amount of revenue and gross profit (loss) to be recognized in each of the three years. (Do not round intermediate calculations. Loss amounts should be indicated with a minus sign.)