6. The endowment effect Suppose passengers on an airplane are randomly assigned to seats that are either on the aisle or by the window. Knowing that all passengers would prefer a seat by the window, the head flight attendant asks those who were awarded a seat by the window how much they would have to be compensated in order to take an aisle seat instead. On average, the flight attendant finds that they would demand $20. Drawing on the insights of behavioral economics, you would expect that (on average) passengers who are initially assigned to aisle seats would be willing to pay $20 to get a seat by the window. This is an illustration of .

Andrew cooper decides to become a part owner of a corporation. as a part owner, he expects to receive a profit as payment because he has assumed the risk of - serious inflation eroding the purchasing power of his investment.- being paid before the suppliers and employees are paid.- losing his home, car, and life savings.- losing the money he has invested in the corporation and not receiving profits.- the company giving all of the profits to local communities

The following cost data relate to the manufacturing activities of chang company during the just completed year: manufacturing overhead costs incurred: indirect materials $ 15,800 indirect labor 138,000 property taxes, factory 8,800 utilities, factory 78,000 depreciation, factory 150,600 insurance, factory 10,800 total actual manufacturing overhead costs incurred $ 402,000 other costs incurred: purchases of raw materials (both direct and indirect) $ 408,000 direct labor cost $ 68,000 inventories: raw materials, beginning $ 20,800 raw materials, ending $ 30,800 work in process, beginning $ 40,800 work in process, ending $ 70,800 the company uses a predetermined overhead rate of $20 per machine-hour to apply overhead cost to jobs. a total of 20,500 machine-hours were used during the year. required: 1. compute the amount of underapplied or overapplied overhead cost for the year. 2. prepare a schedule of cost of goods manufactured for the year.

Why is efficiency an important economic goal?