Suppose that edison, an economist from an am talk radio program, and hilary, an economist from a public television program, are arguing over government bailouts. the following dialogue shows an excerpt from their debate: hilary: to recent financial crises, the concept of bailouts is a hot topic for debate among everyone these days. edison: indeed, it's gotten crazy! a government bailout of severely distressed financial firms is unnecessary because free markets will properly price assets. hilary: i don't know about that. without a bailout of severely distressed financial firms, the economy will experience a deep recession.

the disagreement between these economists is most likely due to:

1) differences in perception versus reality

2) differences in scientific judgements

3) differences in values

despite their differences, with which propositional two economists chosen at random most likely to agree?

1) rent ceilings reduce the quality and quantity of available housing.

2) immigrants receive more in government benefits than they contribute in taxes.

3) having a single income tax rate would improve economic performance.

Milden company has an exclusive franchise to purchase a product from the manufacturer and distribute it on the retail level. as an aid in planning, the company has decided to start using a contribution format income statement. to have data to prepare such a statement, the company has analyzed its expenses and has developed the following cost formulas: cost cost formula cost of good sold $35 per unit sold advertising expense $210,000 per quarter sales commissions 6% of sales shipping expense ? administrative salaries $145,000 per quarter insurance expense $9,000 per quarter depreciation expense $76,000 per quarter management has concluded that shipping expense is a mixed cost, containing both variable and fixed cost elements. units sold and the related shipping expense over the last eight quarters follow: quarter units sold shipping expense year 1: first 10,000 $ 119,000 second 16,000 $ 175,000 third 18,000 $ 190,000 fourth 15,000 $ 164,000 year 2: first 11,000 $ 130,000 second 17,000 $ 185,000 third 20,000 $ 210,000 fourth 13,000 $ 147,000 milden company’s president would like a cost formula derived for shipping expense so that a budgeted contribution format income statement can be prepared for the next quarter. required: 1. using the high-low method, estimate a cost formula for shipping expe