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EXTRA CREDIT A winter storm cuts the power supply and isolates a small town in the mountains.  People rush to buy candles from the town’s only store.  The store owner decides to keep the price of candles unchanged and, instead, rations candles one to a family. a) Who ultimately gets to use the candles distributed by the method of allocation used by the store owner? b) Who ultimately receives consumer surplus (buyer gain from trade) and producer surplus (seller gain from trade) on the exchanges of candles?

The chin is ________ to the abdomen.

The citizens of Alphaville can produce 100 bushels of corn in one day or produce 25 gallons of  wine in one day.  The citizens of Omegashire can produce 400 bushels of corn in one day or produce 50 gallons of wine in one day. a. Which country has the comparative advantage in wine and which has the comparative advantage in corn? b. If citizens of these two countries start to trade, which country will export wine and import corn?  Explain why.

The citizens of Alphaville can produce 100 bushels of corn in one day or produce 25 gallons of  wine in one day.  The citizens of Omegashire can produce 400 bushels of corn in one day or produce 50 gallons of wine in one day. a. Which country has the comparative advantage in wine and which has the comparative advantage in corn? b. If citizens of these two countries start to trade, which country will export wine and import corn?  Explain why.

EXTRA CREDIT A winter storm cuts the power supply and isolates a small town in the mountains.  People rush to buy candles from the town’s only store.  The store owner decides to keep the price of candles unchanged and, instead, rations candles one to a family. a) Who ultimately gets to use the candles distributed by the method of allocation used by the store owner? b) Who ultimately receives consumer surplus (buyer gain from trade) and producer surplus (seller gain from trade) on the exchanges of candles?

Which of the following is false regarding the dissolution of a partnership in Germany?

[Software Dispute] Cole, Kyra, and Morton are partners in a startup company that designs software for the biotechnology industry. Their partnership agreement contained a provision that the partnership would be dissolved when Morton retires, or if any partner commits any act that violates the trust of the other partners. The partnership agreement also provided that all intellectual property related to the business of the partnership, including any patents, be owned by the partnership. Cole decides to open another company, ColeCompany, that would design gaming software. He sets up the company secretively, transfers a patent owned by the partnership to ColeCompany, and does not tell his partners until he is ready to do business at ColeCompany. When Kyra and Morton find out that Cole went behind their backs and opened another business, they tell Cole they can no longer trust him and are dissolving the partnership because of his actions. Cole, who is the software designer for the partnership, tells them if they want to dissolve the partnership, then he will also design software for the biotech industry at ColeCompany. Can Cole design software for the biotech industry at ColeCompany while the partnership is winding-up?

[Candy Company] Milton, Ava, and Hiro own a candy company. The business is failing and Milton is declared bankrupt by the bankruptcy court. Ava wants to keep the business running because she is sure she can turn it around. Hiro tells her that, it’s too late, the partnership is already over because of Milton. Ava tells him that no one has asked to end the partnership so they do not have to dissolve. The partnership debts include a loan to the bank, loans Ava made to the company, and the initial capital that all three partners invested. Milton has no money to pay any of their debts. In what order should the partnership’s debts be paid?

[Drone Debacle] Bruno and Martin run Skyview, LLC, a drone company that takes aerial photographs. After an accident with the drone, Bruno tells Martin that he does not want to be involved in management any longer. Martin tells Bruno that if he stops participating in management, they will no longer be protected by the limited liability of an LLC. Bruno says that if there is a lawsuit, they are both equally liable. Martin replies that if Bruno wants, he could be a limited LLC member and then he won’t have a say in the company. Is Martin correct that they will lost the protection of limited liability if Bruno ceases participating in management decisions?

[Language-Science Kits] The president of Kool Science, Inc., which makes educational science kits for children, calls the president of Language Fun, Inc., which makes foreign language learning materials for children. They discuss production of three educational toys which teach both science and foreign language to children. They agree that Kool will work with Language to create and market the three toys, and that they will use Kool’s manufacturer to produce the product. Does the president of Kool Science have the authority to sign a contract with a supplier on behalf of Language Fun for the language-science kits?