Figure 2-9 Refer to Figure 2-9- Panel (a)- Production at point B is.docx

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Production at point B in Panel (a) of Figure 2-9 is possible but inefficient. While resources can be used to produce at point B, they are not being fully utilized, making it an inefficient point of production along the production possibilities curve.

Formation

Figure 2-9
Refer to Figure 2-9, Panel (a). Production at point B is
impossible and inefficient.
impossible but efficient.
possible but inefficient.
possible and efficient.
Panel (a) Panel (b)
Figure 2-9 Refer to Figure 2-9, Panel (a). Production at point B is impossible and inefficient.
impossible but efficient. possible but inefficient. possible and efficient.
Solution
Production at point B is possible but inefficient because all the points under PPC are inefficient
points since at these points resources are not fully utilised.

Figure 2-9 Refer to Figure 2-9- Panel (a)- Production at point B is.docx

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At January 1, 2012, Lance Link Corporation had 100,000 shares of $1 par common stock and 1,000 shares of $100 par, 6%, cumulative preferred stock outstanding. Express did not pay dividends in 2012 or 2013. In December 2014, the board of directors declared a $45,000 cash dividend to be paid on January 31. Required: Compute the total dividend to be paid to the preferred shareholders. Compute the total dividend to be paid to the common shareholders Show the December 31 journal entry to record the declaration of dividends. Solution Answer 1: Answer 2: Answer 3: Profit and Loss A/c Dr. 45000 To Proposed Dividend 45000 (Being dividend declared) .

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