The marginal productivity theory states that if a firm operates in a perfectly competitive factor market, it pays each factor of production its marginal revenue product. However, this theory may fail to hold if factor markets are not competitive.

One circumstance under which factor markets may fail to be competitive is if there is imperfect information. Which of the following are examples of how information problems can lead to inefficient outcomes? Check all that apply.

a. If a firm can't tell who its most productive workers are, it must pay everyone the same wage.

b. Workers who are actually productive may not be hired if they don't have the credentials required by a screening process.

c. Firms may discriminate against workers or suppliers they don't trust.

Mesa company produces wooden rocking chairs. the company has two production departments, cutting and assembly. the wood is cut and sanded in cutting and then transferred to assembly to be assembled and painted. from assembly, the chairs are transferred to finished goods inventory and then are sold.mesa has compiled the following information for the month of february: cutting department assemblydepartmentdirect materials $ 73,000 $ 13,000direct labor 73,000 108,000applied manufacturing overhead 159,000 171,000cost of goods completed and transferred out 233,000 255,000required: 1, 2, 3, & 4. prepare journal entries for the transactions in the cutting and assembly departments of mesa company. (if no entry is required for a transaction/event, select "no journal entry required" in the first account field.)