Employees at the jackson hole corporation typically take forty-five minutes for lunch when the allocated time is only thirty minutes. employees are encouraged to eat at the company cafeteria located in the middle of the company facilities. most employees choose to eat their lunch in the cafeteria. is there an agency cost here? if so, how can management eliminate or reduce this agency cost? what is the agency cost in this situation? a. the agency cost is the cost of the extra supervision required to insure the employees are not violating the length of the lunch break. b.the agency cost is the expense it takes to operate the cafeteria. c.the agency cost is the lost forty-five minutes of production time each day which the employees use to take their lunch. d.the agency cost is the lost fifteen minutes of employee production time each day.

Costs of production that do not change when output changes.question 17 options: total revenuefixed incometotal costfixed cost

Grant, inc., acquired 30% of south co.’s voting stock for $200,000 on january 2, year 1, and did not elect the fair value option. the price equaled the carrying amount and the fair value of the interest purchased in south’s net assets. grant’s 30% interest in south gave grant the ability to exercise significant influence over south’s operating and financial policies. during year 1, south earned $80,000 and paid dividends of $50,000. south reported earnings of $100,000 for the 6 months ended june 30, year 2, and $200,000 for the year ended december 31, year 2. on july 1, year 2, grant sold half of its stock in south for $150,000 cash. south paid dividends of $60,000 on october 1, year 2. before income taxes, what amount should grant include in its year 1 income statement as a result of the investment?

Suppose the marginal damage and marginal benefit curves in a polluted neighborhood are md = p/3 and mb = 4 – p. also, suppose that transactions costs are low, so that the consumers and the firm can bargain. we saw that in this case, the socially-optimal level of pollution is achieved. start by computing the socially-optimal p. then, for each of the following cases, compute the amount of money transferred through the bargaining process, and indicate who pays whom (i.e., whether consumers pay the firm, or vice versa). also, compute the gains to each party relative to the status quo (i.e., the starting point of the bargaining process).a)consumers have the right to clean air; firm is dominant in the bargaining process.b)consumers have the right to clean air; consumers are dominant in the bargaining process.c)firm has the right to pollute; firm is dominant in the bargaining process.d)firm has the right to pollute; consumers are dominant in the bargaining proces