Available Options Are:
A. decrease his spending on both coffee and soda.
B. reallocate his spending away from soda and towards coffee.
C. not change his consumption of either coffee or soda.
D. reallocate his spending away from coffee and towards soda.
Answer:
D. Reallocate his spending away from coffee and towards soda.
Explanation:
The utility per dollar of Coffee = 15 utils / $3 = 5 utils per dollar
Similarly
The utility per dollar of Soda = 11 utils / $2 = 5.5 utils per dollar
As the utility per dollar spending is more in the case of soda, hence ALex must spend more on soda to draw maximum utility out of its spending. Option D is correct statement.
Kevin is maximizing his utility consumption of almond butter sandwiches and sushi. There is a boom in fish in the summer and the price of sushi suddenly drops. What will the price change most likely change in Kevin's consumption behavior? Group of answer choices Kevin will stick to his original indifference curve to a point intersecting the new budget constraint. Kevin's budget constraint and indifference curves will not change since the price of sushi has not changed Kevin will change his new budget constraint to be tangent to the original indifference curve at some point. Kevin will increase consumption with the bundle of goods at a new higher indifference curve tangent to the new budget constraint.
Answer:
Kevin will increase consumption with the bundle of goods at a new higher indifference curve tangent to the new budget constraint.
Explanation:
Kevin's consumption possibilities frontier basically shows the budget constraint that Kevin faces when deciding what to purchase. It also represents the opportunity cost of consuming one product instead of another.
If the price of one of the products changes, then the whole consumption possibilities change and a new bundle of goods will be available.
E.g. Kevin had $10, sushi costs $5 and sandwiches cost $5. He can either buy 1 sushi and 1 sandwich, 2 sushis or 2 sandwiches. If the price of sushi decreases to $2.50, then Kevin's options increase. He can now purchase 2 sushis and 1 sandwich, 2 sandwiches or up to 4 sushis.
Firm A has preferred stock outstanding that pays a dividend of $9.50. Firm B has preferred stock outstanding that pays a dividend of $4.50. Given this information, the price of Firm A is _________________.
Answer: At least $5 lower than the price of Firm B
Explanation:
A preferred stock is a stock whereby the holder of the stock is entitled to a dividend which is usually fixed.
From the question, we are informed that Firm A has preferred stock outstanding that pays a dividend of $9.50 while Firm B has preferred stock outstanding that pays a dividend of $4.50.
With the information provided above, the price of Firm A is at least ($9.50 - $4.50) = $5 lower than the price of Firm B.
Austin's total fixed cost at the bakery is $3,600 a month. Austin employs 20 workers and pays each worker $8 an hour. The marginal product of the twentieth worker is 12 iced cupcakes an hour. What is the marginal cost of the last cupcake produced by the last worker Austin hired?
Answer:
$0.66
Explanation:
Marginal cost is the cost of producing one extra unit of a product.
if each worker is paid $8, then the marginal cost of producing the last cupcake = $8 / 12 = $0.66
Suppose that the wage is $20 per hour in a two-sector (manufacturing and agriculture) specific-factors model. Currently, the prices of manufactured and agricultural outputs are $5 and $1, respectively; the marginal product of labor in the manufactured sector is 6 units per hour; and the marginal product of labor in the agricultural sector is 10 units per hour. What will happen to the distribution of labor between the two sectors?
Options :
A) Nothing will happen. The current allocation of labor between the two sectors is ideal.
B) The manufacturing sector will demand more labor, and the agricultural sector will demand less labor at the current wage.
C) The agricultural sector will demand more labor, and the manufacturing sector will demand less labor at the current wage.
D) Both the agricultural and the manufacturing sector will demand more labor at the current wage.
Answer: B) The manufacturing sector will demand more labor, and the agricultural sector will demand less labor at the current wage.
Explanation: Analysing the marginal product of labor for the TWO sectors ; the manufacturing and agricultural which measures the change in production output as labor is increased. The output produced by increasing labor is 6units for manufacturing and 10 units for agricultural, agricultural seems greater, however, comparing output with the price per unit of product, manufacturing and agricultural sells for $5 and $1 respectively. Meaning manufacturing generates ($5 * 6) = $30 while agricultural generates ($1 * 10)) $10 per increase in number of Labor.
Therefore, at the current wage of $20, revenue made by hiring one more unit of labor into the agricultural sector cannot even cater for it's wage. Therefore, agricultural sector will demand less while manufacturing will demand more.
XYZ Company has issued 10%, $100 par non-cumulative preferred stock. Two years ago, XYZ omitted its preferred dividend. Last year, it paid a preferred dividend of $5 per share. This year, XYZ wishes to pay a common dividend. In order to make the distribution to common shareholders, each preferred share must be paid a dividend of:
Answer:
In order to make the distribution to common shareholders, each preferred share must be paid a dividend of:
$5 per share.
Explanation:
The preferred stock is non-cumulative. This implies that XYZ's preferred stockholders are not being owed for the previous two year's dividend that was not paid. Non-cumulative preferred stock does not attract dividend arrears whenever it was not declared. It is cumulative preferred stock that attracts such arrears to be carried forward until they are paid.
What are some of the possible consequences of financial distress? I) Bondholders, who face the prospect of getting only part of their money back, will likely want the company to take additional risks. II) Equity investors would like the company to cut its dividend payments to conserve cash. III) Equity investors would like the firm to shift toward riskier lines of business.
Answer:
III) Equity investors would like the firm to shift toward riskier lines of business.
Explanation:
Financial distress refers to the situation at which the organization not able to generate the profit as it is not able to meet or pay the financial debts. This occurs when the fixed cost is high, liquid assets leads to be sensitive in nature which results in downturns of an economic system
Hence, the third option is correct as the firm would shift to the riskier business lines
A homeowner from State A hired a contractor from State B to build a vacation home for her in State C. The parties signed the contract in State A. The contractor breached the contract, and the homeowner sued the contractor in a court of State A, seeking damages of $100,000. The contractor removed the case to the federal court for State A. The homeowner promptly moved to remand the case to state court, arguing that venue was improper.
Which of the following facts is most relevant to the court's decision on the homeowner's motion?
A The contract was signed in State A.
B The contractor resides in State B.
C The homeowner commenced the action in a State A court.
D The vacation home was to be built in State C.
Answer:
The Home owner commenced the action in a state A court ( C )
Explanation:
The Defendant ( the contractor) can decide to transfer the case from a state court to a federal court within the same state in which the case was filled by the The home owner if the federal court has the Jurisdiction to rule on the case
Since the contract was signed in state A under the laws of the state the case is definitely a state case and the Homeowner's move to remand the case to a state court with the argument that the Federal court lacks proper Jurisdiction is in order. The court decision on the matter will be based on the fact that the Homeowner commenced the action in a state A court where the contract was signed.
After struggling with the accounting training, Peter is unsure whether he can complete the end-of-year financial reporting with no errors in the time allotted. In this case, Peter is low on the ______ element of expectancy theory.
Answer: expectancy
Explanation:
From the question, we are informed that Peter struggled with the accounting training, and as a result is unsure whether he can complete the end-of-year financial reporting with no errors in the time allotted.
This shows that Peter is low on the expectancy element of expectancy theory. Expectancy element in the expectancy theory is when one has the belief that his or her effort will lead to the achievement of ones goals and objectives.
Economics is BEST defined as the study of how: A) to classify resources used to produce final goods and services. B) resources are apportioned to satisfy human wants. C) people make rational decisions. D) technology can be used to change scarce resources into free resources
On April 1, Griffith Publishing Company received $24,480 from Santa Fe, Inc. for 36-month subscriptions to several different magazines. The company credited Unearned Fees for the amount received and the subscriptions started immediately. What is the adjusting entry that should be recorded by Griffith Publishing Company on December 31 of the first year?
Answer:
Dr Unearned Fees, $6,120
Cr Fees Earned, $6,120
Explanation:
Based on the information given we were told that the On April 1, the Company received the amount of $24,480 for 36-month subscription in which the company credited Unearned Fees for the amount received therefore the adjusting entry that the company should be record on December 31 of the first year will be:
Dr Unearned Fees, $6,120
Cr Fees Earned, $6,120
Working:
Amount the company received $24,480 ÷Months of Subscription 36 months
*April to December will give us 9 months
Hence,
$24,480/36*9
=$680*9
=$6,1,20
Q 7.37: Eric Hansen is a receiving clerk who has just been denied a raise. He has approached his subordinate, who is the new storeroom clerk, about diverting inventory to sell for personal gain. This example of the ________, which may lead to _________.
Answer:
Human element; collusion.
Explanation:
In this scenario, Eric Hansen is a receiving clerk who has just been denied a raise. He has approached his subordinate, who is the new storeroom clerk, about diverting inventory to sell for personal gain. This is an example of the human element, which may lead to collusion.
Human element can be defined as a strategic technique for improving and dealing with the way or manner employees work together in a business environment in order to achieve greater organizational performance and accomplishments. Human element can be used to improve openness, sincerity and honesty among the the very many people (employees) working individually or together as a team in an organization.
In this case, when the storeroom clerk agrees to Eric's suggestion, this would lead to both of them diverting inventory to sell for personal gain. This is simply an act of collusion.
Collusion is an illegal cooperation or agreement between two or more people with an ulterior motive, for personal benefits.
Phyllis bought a beach townhouse for $475,000 and put down $50,000 in earnest money. At closing, she paid $150,000, the balance of her intended down payment. The mortgage tax in the area is $.35 per $100 (or portion thereof). Calculate what Phyllis will pay for the mortgage tax.
Answer:
$962.50
Explanation:
Given the following :
Cost of beach townhouse = $475,000
Amount payed in earnest = $50,000
At closing = $150,000
Tax fee = $0.35 per $100
Total down-payment = $(50,000 + 150,000) = $200,000
Amount being taxed = $(475,000 - 200,000)
Amount being taxed = $275,000
Total tax paid :
($275,000 / $100) × $0.35
2750 * $0.35 = $962.50
= $962.50
_______ is a term referencing the concept that a sufficient interest must exist on the part of an insured in order to take out a policy of insurance. Multiple Choice Insurable interest Pecuniary interest Financial concern Financial effect Profit impact
Answer:
Insurable interest
Explanation:
The insurance interest is the interest of the insurer while taking the policy so that the risk of the loss is reduced also it is an important requirement that makes the firm or the event to be legal, valid, enforceable, and protected against any harmful acts done intentionally
Therefore according to the given situation, the concept in which enough interest must exist on the part of the insurer while taking the policy is known as the insurer interest
Hence, the first option is correct
What’s the likeliest reason the program failed? (A) The nap wasn't long enough. (B) The room for the nap was too noisy. (C) The culture of the organization did not support napping during a shift. (D) Workers weren’t as tired as managers thought they were.
Answer: C. The culture of the organization did not support napping during a shift.
Explanation:
Many people tend to have a good rest when they are not working so they can regain their mental and physical strength when they are not on duty to be strong enough to carry out task when they on duty. Depreving them of this rest will tend to fail any program. Rest is required for success as the human system is frail at some point after long task or job being carried out.
Miguel is a new salesperson for Imperial Realty. Dissatisfied with the lack of mentoring he has received, he decides to work for Millennium Real Estate instead, and has his license transferred. At the time of the switch, he had listed two properties. What happens to his listings
Answer:
Miguel cannot keep the listings; they belong to Imperial Realty.
Explanation:
Since Miguel decides to work for Millennium Real Estate instead and want to transferred his license but at the time of switching, he listed two properties.
So as a salesperson he cannot keep the listing as it belongs to a broker not a salesperson and the broker should also be reassigned to the new salesperson plus it also belongs to the imperial realty which he has not part anymore
Ahmed emigrated from his war-torn country to the United States three years ago. Recently, he found a job working on an assembly line at an electronics manufacturer. When he came to the U.S., Ahmed left his friends and family behind. Now he is lonely and hopes that his fellow employees will accept him so that he can build some lasting friendships. According to Maslow, Ahmed is looking to satisfy his:_____________.
A) self-actualization needs.
B) safety needs.
C) physiological needs.
D) social needs.
Answer:
D) social needs
Explanation:
Based on the information given Ahmed is looking to satisfy his SOCIAL NEEDS.
Social needs occur in a situation where a person or an individual desire to have relationships or long lasting relationship with others because such person believe that his or her relationships with others will help him/her reduce their emotional concerns such as depression or fear of be alone, which is why SOCIAL NEEDS is important because it makes us desire to be loved and care for by others just as in the case of Ahmed who was looking to satisfy his SOCIAL NEEDS.
Patricia is a team leader. When looking at an e-mail from one of her team members, Patricia noticed that the e-mail was sent at 9:30 in the evening. The next day she personally went to the employee’s cubicle and told him how much she appreciated him staying late to get the project to the client on time. Which aspect of creating a positive organizational culture is Patricia utilizing?
The options in this question are missing; here are the options:
Which aspect of creating a positive organizational culture is Patricia utilizing?
A. Rewarding more than punishing
B. Building on organization strengths
C. Emphasizing individual growth
D. Building on employee strengths
E. Providing extrinsic rewards
The answer to this question is A. Rewarding more than punishing
Explanation:
One important factor in creating a positive organizational culture is to make employees feel appreciated and recognizing their efforts. This can be achieved through the rewarding more than punishing strategy, which implies focusing on positive actions and aspects rather than on negative aspects. Besides this, as part of the recognition of positive aspects employees or members of a team are rewarded, which includes verbal praise.
This strategy is used by Patricia because she has decided to focus on the effort the employee made by sending the e-mail at 9:30 p.m. because this showed the effort he was making and how much time he is dedicating to the job. Also, as part of recognizing the employee's effort, Patricia uses verbal praise, which a reward.
Which of the following is the best characterization of sociocultural forces? a firm's culture, norms, and values a competitor's culture, norms, and values a focus group's culture, norms, and values a society's culture, norms, and values
Answer:
a society's culture, norms, and values
Explanation:
From the name socio + cultural indicates best how the culture, norms and values affect a society.
Often times the term culture refers to the general way of life of the members of a particular society. While the term norms and values refers to acceptable standards within a particular society. All this terms characterizes sociocultural forces.
Which of the following is a primary feature of the five forces model? It views competition within an industry broadly to include forces such as buyers, suppliers, and the threat of substitutes. It takes into account a firm's internal resources, capabilities, and core competencies. It helps managers determine the changing speed of an industry or the rate of innovation. It is concerned exclusively about the intensity of rivalry among direct competitors.
Answer:
It views competition within an industry broadly to include forces such as buyers, suppliers, and the threat of substitutes.
Explanation:
The five forces model was developed by Harvard Professor Michael Porter, and it is a broad model of firm competition that takes into account 5 forces: buyer power, supplier power, threat of new entry, threat of substitutes, and competitive rivalry.
The power of suppliers and buyers lies mainly in how many suppliers and buyers exist in the market, because the more participants in a market, the less likely a firm will have market power.
The threat of substitutes is simply the quantity of substitute goods that are present in the market.
Does anyone know how to start your own business as a teen? I am trying to start my own beauty business, with face products etc. Also I need name ideas one of that I was thinking of was Natural Beauty. Since I am going to be selling all natural products
Answer:
i'm no expert but, i think first start out with ideas of the business u wanna do and keep adding on to those ideas you already have and find a business idea you know you can invest in and stick to that business so you can make money you want and supply the products people want and need so, that your making money to help yourself out in life and their getting supplies that are good and don't have harsh chemicals so, it doesn't result in you losing money. Also Natural Beauty is a good name but, i think you might like these three name ideas but, if not its okay go with the name you want since it's your business. Here are the name ideas Natural Essentials, Clear Beauty, or Organic Beauty Essentials.
Answer:
Many small business owners decide to set up an LLC for the liability protection it provides. An LLC, or limited liability company, exists separately from its owners (known as members), and the owners are therefore not personally responsible for business debts.Most states don’t allow two different business entities to have the same name. So you can’t, for example, have “Joe’s Donuts, LLC” and “Joe’s Donuts, Inc.,” even if they’re located in different cities. Many states also restrict companies from using certain words in their names, such as “bank.” If the LLC name you’ve selected is available, but you aren’t going to be filing your LLC documents right away, you may want to reserve the name. Nearly every state allows you to reserve a name by filing a form and paying a name reservation fee. The length of the reservation period, filing fees, and renewal policies vary from state to state.Almost every state requires its LLCs to name a registered agent (also sometimes called a statutory agent). A registered agent is a person who agrees to receive lawsuits, subpoenas and other official documents on behalf of the LLC and to pass them along to the appropriate person at the LLC.An LLC operating agreement is the roadmap that describes how your LLC will be run. It specifies such things as the ownership interests and voting rights of the members, how profits and losses will be allocated, how meetings will be held, how the business will be governed, the rights of the members if one of them dies or leaves the business, and the way the company will be dissolved if it goes out of business.Each state has its own form and procedure for establishing an LLC. In general, you must file articles of organization that list.After the LLC’s formation documents are filed and approved, the state will issue a certificate or other document that confirms that your LLC formally exists. Once you’ve received the certificate, you can take care of business matters like obtaining a tax ID number and business licenses and setting up a business bank account. Explanation:If your LLC does business in more than one state, you may need to register to do business in other states. To do this, you’ll need to fill out and submit paperwork that’s similar to the paperwork you filed when you formed your LLC. You’ll also need a registered agent in each state where you are authorized to do business.
Lenny's Landing has a net Section 1231 gain in the current year of $12,000. In the previous five years, there are $3,000 in unrecaptured Section 1231 losses. How will Lenny's gain be taxed in the current year
Answer:
As the $3,000 is unrecaptured losses, it will be carried forward to this year and would be set off against the current year's capital gains.
Explanation:
The previous year unrecaptured loss of $3000 will carried forward and would be set off against the capital gains of $12,000. The gain for the year can be calculated as under:
Capital Gain for the year = Gain Before unrecaptured losses - Carried Forward Losses
By putting values, we have:
Capital Gain for the year = $12,000 - $3,000 = $9,000
The resultant $9,000 would be the capital gain for the year.
All of the following statements about stock indexes are true EXCEPT
A. stock indexes are based on criteria that define the market segment of interest.
B. stock indexes replicate the market activity in a certain segment of the stock market.
C. stock indexes are unbiased and perfect indicators of market activity.
D. stock indexes can serve as a benchmark to evaluate investment manager performance.
Answer:
C. stock indexes are unbiased and perfect indicators of market activity.
Explanation:
Stock indexes are a tool that is used to track a group of assets using standardised criteria.
Usually indexes monitors a group of securities. Indexes can be broad based or specialised.
Indexes are statistically derived benchmarks that securities are measured against. They are however not unbiased and perfect indicators of market activity.
This is because investor behaviour cannot be guaged statistically.
However indexes replicate the market activity in a certain segment of the stock market, serve as a benchmark to evaluate investment manager performance, and are based on criteria that define the market segment of interest.
Kevin is not fond of travelling; hence, he did not take up an assignment as the job involved excessive travelling. On the other hand, Sam took up
the same assignment simply because he loves travelling. What is such a contrasting behavior called?
The contrasting behavior that influenced Kevin and Sam's job selection is known as
Answer:
Internal employee motivations or employee personality traits.
Explanation:
Remember, based on the context of this example, we notice here that, the two employees had different personalities, and thus affected their job selection.
Personality of an employee serves as internal motivation for certain job duties and may affect the quality of their work. Thus, recruitment staff should always strife to place the right person for the right job.
"Manson Industries incurs unit costs of $8 ($5 variable and $3 fixed) in making an assembly part for its finished product. A supplier offers to make 12,400 of the assembly part at $6 per unit. If the offer is accepted, Manson will save all variable costs but no fixed costs. Prepare an analysis showing the total cost saving, if any, Manson will realize by buying the part. (Enter negative amounts using either a negative sign preceding the number e.g. -45 or parentheses e.g. (45).)"
Answer:
There is negative saving on total cost when it buys = -$12400
Explanation:
Per unit fixed costs = $3
Per unit variable costs = $5
Total cost of an unit = $8
Offer by supplier = 12400 units at $6 per units.
First calculate the amount when it makes:
Variable cost = 12400*5 = 62000
Fixed costs = 12400*3 = 37200
Total cost when it makes = 62000 + 37200 = $99200
First calculate the amount when it buys:
Fixed costs = 12400*3 = 37200
Purchase price = 12400*6 = $74400
Total cost when it buys = 37200 + 74400 = $111600
Since the total cost of buying is greater, so it should make the part.
However, the total cost saving when it makes the part = Total cost when it buys -Total cost when it makes
= $111600-$99200
= $12400
There is negative saving on total cost when it buys = -$12400
An investor holds a 6% callable bond purchased at 105. If the issuer calls the bond before maturity, the yield to call (YTC) realized by the investor would be A) equal to the yield to maturity (YTM). B) less than the coupon. C) greater than the yield to maturity (YTM). D) greater the current yield (CY).
Answer: less than the coupon
Explanation:
When a bond that is bought at a premium of 205 is called before the bond matures by the issuer, this implies that the accelerated premium loss will have to be reflected in calculated yield to maturity.
It should also be noted that the YTC is the lowest among the yields for the premium bonds. Therefore, if the issuer calls the bond before maturity, the yield to call (YTC) realized by the investor would be less than the coupon.
Option B is correct.
The USDA maintains ethanol has an impact on food prices. "Higher ethanol production definitely and directly raises the price of corn," said USDA economist Ephraim Leibtag. In the long run in the corn market, what is true if the production of ethanol increases?
Answer:
new corn farmers will enter the market and decrease the market price.
Explanation:
In regards to the information provided, it can be said that in a long term perspective if the production of ethanol keeps increasing then new corn farmers will enter the market and decrease the market price. This is because as ethanol production increases, so does the price of corn. This will continue up to a certain point were profitability for farmers is high and many new farmers will enter the market hoping to profit from the corn as well. All these new farmers will drastically increase the production of corn and as the supply of corn rises the prices will begin to fall.
Juniper Company uses a perpetual inventory system and the gross method of accounting for purchases. The company purchased $9,750 of merchandise on August 7 with terms 1/10, n/30. On August 11, it returned $1,500 worth of merchandise. On August 16, it paid the full amount due. The amount of the cash paid on August 16 is:________.
A. Debit Merchandise Inventory $1500; Credit Sales Returns $1500.
B. Debit Accounts Payable $1500; Credit Purchase Returns $1500.
C. Debit Accounts Payable $1500; Credit Cash $1500.
D. Debit Accounts Payable $1500; Credit Merchandise Inventory $1500.
E. Debit Merchandise Inventory $1500; Credit Cash $1500.
Answer:
Explanation:
The term of transaction is 1/10 , n 30
This means that if Juniper pays up for the merchandise within 10 days after purchase , it is entitled to 1 % of the invoice value or else he should pay up the entire invoice value without a discount not late than 30 days after the purchase.
If the date of transaction is August 7 and the payment day is August 16 , which is 9 days interval , this means that Juniper is entitled to 1% discount
Workings
Inventory purchased =9,750
Returns = (1,500)
8,250
Entitled discount = 1% (82.5)
Final payment 8,167.5
B
The journal entry for the returned merchandise
Debit account payable $1,500
Credit Merchandise inventory $1,500
The amount of cash paid on August 16 is:
Debit account payable $1,500
Credit Merchandise inventory $1,500
Thus, option D is correct.
The Journal entry will be:
Journal entries are added to the broad ledger as part of the accountancy cycle. Each general ledger report will contain the payment date, amount, impacted institutions with account numbers, and explanation.
Since there are 9 days between the transaction's completion date of August 7 and the payment's due day of August 16, Juniper is entitled to a 1% discount.
The amount of cash paid on August 16 is:
Account payable (Debit) - $1,500
Credit Merchandise inventory (Credit) - $1,500
Therefore, option D is correct.
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The two best signs of good strategy execution are whether: the company is challenging its current performance targets and whether value chain activities are fully integrated within the strategic response criteria. managers are personally leading the change process and whether they are meeting deadlines set for budgetary requirements. the company is meeting or beating its performance targets and whether it is performing value chain activities in a manner that is conducive to companywide operating excellence. managers are fully behind the changes and whether the company's value chain managers are executing them diligently. the company identifies what the organization must do and how to make the necessary internal changes.
Answer: the company is meeting or beating its performance targets and whether it is performing value chain activities in a manner that is conducive to companywide operating excellence.
Explanation:
The execution of a good strategy requires a team effort with every managers using their authority to ensure that all the workers under them take active part in the execution of the strategy.
The two best signs of good strategy execution are whether the company is meeting or beating its performance targets and also whether the company is performing value chain activities in a manner which is conducive to companywide operating excellence.
what do firms get from households
Answer:
Households supply labor to firms and are paid wages in return. Firms use that labor to produce pizzas and sell those pizzas to households. There is a flow of goods (pizzas) from firms to households and a flow of labor services (worker hours) from households to firms.
Explanation:
A subsidy will increase consumer and producer surplus in a market and will increase the quantity of trades. A subsidy (such as a subsidy for producing corn in the United States) can be considered inefficient because a subsidy results in a quantity:
Answer: higher than market equilibrium quantity where cost of supplying the unit is more than the willingness to pay
Explanation:
A subsidy is a sum of money that is given to a business or an organization by the government in order to increase the supply and also keep the prices low.
Therefore, a subsidy such as a subsidy for producing corn in the United States can be considered inefficient because a subsidy results in a quantity that is higher than market equilibrium quantity whereby cost of supplying the unit will exceed the willingness to pay.