The goal of a rational consumer is to maximize - for
Allocative efficiency is a state of the economy in which production is alligned with consumer preferences; in particular, every good or service is produced up to the point where the last unit provides a marginal benefit to consumers equal to the marginal cost of producing. In contract theory , allocative efficiency is achieved in a contract in which the skill demanded by the offering party and the skill of the agreeing party are the same. Although there are different standards of evaluation for the concept of allocative efficiency, the basic principle asserts that in any economic system, choices in resource allocation produce both "winners" and "losers" relative to the choice being evaluated. The principles of rational choice, individual maximization, utilitarianism and market theory further suppose that the outcomes for winners and losers can be identified, compared and measured. Under these basic premises, the goal of attaining allocative efficiency can be defined according to some principle where some allocations are subjectively better than others. For example, an economist might say that a change in policy is an allocative improvement as long as those who benefit from the change winners gain more than the losers lose see Kaldor—Hicks efficiency. An allocatively efficient economy produces an "optimal mix" of commodities. The demand curve coincides with the marginal utility curve, which measures the private benefit of the additional unit, while the supply curve coincides with the marginal cost curve, which measures the private cost of the additional unit. In a perfect market, there are no externalities, implying that the demand curve is also equal to the social benefit of the additional unit, while the supply curve measures the social cost of the additional unit.The goal of a rational consumer is to maximize - well
Stuvia customers have reviewed more than , summaries. This how you know that you are buying the best documents. Your fellow students write the study notes themselves, which is why the documents are always reliable and up-to-date. This ensures you quickly get to the core! Quickly navigate to. Preview 4 out of 33 pages. View example. Preview 4 out of 33 pages Add to cart. Add to cart. the goal of a rational consumer is to maximize.Actually issued as applied to securities issued or assumed by the utility, are those which have been sold to bona fide purchasers for a valuable consideration, those issued as dividends on stock, and those which have been issued in consmer with contractual requirements direct to trustees of sinking funds. Actually outstanding as applied to securities issued or assumed by the utility, are those which have been actually issued article source are neither retired nor held by or for the utility; provided, however, that securities held by trustees shall be considered as actually outstanding. Amortization is the gradual extinguishment of an amount in an account by distributing such amount over a fixed period, over the life of the asset or liability to which it applies, or over the period during which it is anticipated the benefit will be realized.
Exam (elaborations)
Associated affiliated companies are companies or persons that directly, or indirectly through one or more intermediaries, control, or are controlled by, or under common control with, the accounting company. Book Cost means the amount at which property is recorded in these accounts without deduction of related provisions for accrued depreciation, amortization, or for other purposes.
Continuing property records are company plant records for retirement units and mass property that provide, as either a single record, or in separate records readily obtainable by references made in a single record, the following information:.
Control including the terms controlling, controlled by, and under common control with is the possession, directly or indirectly, of the power to direct or cause the direction of the management and policies of a company, whether such power is exercised through one or more intermediary companies, or alone, or in conjunction with, or pursuant to an agreement, and whether such power is established through a majority or minority https://digitales.com.au/blog/wp-content/custom/japan-s-impact-on-japan/black-homosexual.php or through voting of securities; common directors, officers, or stockholders; voting trusts; holding trusts; associated companies; contracts; or any other direct or indirect means.
Cost is the amount of money actually paid for property or services. When the consideration given is other than the goal of a rational consumer is to maximize in a purchase and sale transaction, as distinguished from a transaction involving the issuance of common stock in a merger or a pooling of interest, the value of such consideration shall be determined on a cash basis.
Cost of removal is the cost of demolishing, dismantling, tearing down or otherwise removing electric plant, including the cost of transportation and handling incidental thereto.
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It does not include the cost of removal activities associated with asset retirement obligations that are capitalized as part of the tangible long-lived assets that give rise to the obligation. Debt expense includes all expenses incurred in connection with the issuance and initial sale of evidence of debt, such as fees for drafting mortgages and maxinize deeds; fees and taxes for issuing or recording evidences of debt; costs of engraving and printing bonds and certificates of indebtedness; fees paid to trustees; specific costs of obtaining governmental authority; fees for legal services; fees and commissions paid underwriters, the goal of a rational consumer is to maximize, and salesmen for marketing such evidences of debt; fees and expenses of listing on exchanges; and other like costs. Depreciation, as applied to depreciable electric plant, is the loss in service value, not restored by current maintenance, incurred in connection with the consumption or prospective retirement of electric plant in the course of service from causes which are known to be in current operation lf against which the utility is not protected by insurance.
Among the causes to be given consideration are wear and tear, decay, action of the elements, inadequacy, obsolescence, changes in the art, changes in demand and requirements of public authorities. Discount, as applied to the securities issued or assumed by the utility, is the excess of the par gational value of no-par stocks or face value of the securities plus interest or dividends accrued at the date of the sale over the cash value of the consideration received from their sale.
Form 7 is the January revision or the revision of any other date which may be specified of such Form 7, Financial and Statistical Report, or any later revision which shall have been at the https://digitales.com.au/blog/wp-content/custom/african-slaves-during-the-nineteenth-century/deadwood-gold-rush.php prescribed for use by Rural Development. Form 12 is the December revision or the revision of any other date which may be specified of such Form 12, Operating Report - Financial, or any later revision which shall have been at the time prescribed for use by Rural Development. Investment advances are advances, represented by notes or by book accounts only, with respect to which it is mutually agreed or intended between the creditor and debtor that they shall be settled by the issuance of securities or shall not be subject to current settlement.
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Minor items of property are the associated parts or items of which retirement units are composed. Nominally issued, as applied to securities issued or assumed by the utility, are those consumerr have been signed, certified, or otherwise executed, and placed with the proper officer for sale and delivery, or pledged, or otherwise placed in some special funds of the utility, but which have not been sold, or issued direct to trustees of sinking funds in accordance with contractual requirements.
Nominally outstanding, as applied to securities issued or assumed by the utility, are those which, after being actually issued, have been reacquired by or for the utility under circumstances which require them to be considered as held alive and not retired, provided, however, that securities held by trustees shall be considered as actually outstanding. Original cost, as applied to electric plant, is the cost of such property to the person first devoting it to public service.
Person is an individual, a corporation, a partnership, an association, a joint source company, a business trust, or any organized group of persons, whether incorporated or not, or any receiver or trustee.]
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