Masters Golf Products, Inc., spent 4 years and $ 1 comma 190 comma 000 to develop its new line of club heads to replace a line that is becoming obsolete. To begin manufacturing them, the company will have to invest $ 1 comma 820 comma 000 in new equipment. The new clubs are expected to generate an increase in operating cash inflows of $ 759 comma 000 per year for the next 14 years. The company has determined that the existing line could be sold to a competitor for $ 245 comma 000. a. How should the $ 1 comma 190 comma 000 in development costs be classified? b. How should the $ 245 comma 000 sale price for the existing line be classified?

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