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d1i1m1o1n [39]
3 years ago
5

Explain briefly why the private market for public goods is typically characterized by underprovision. Under what situations will

we expect the private market to overcome this problem (at least partially)?
Business
1 answer:
Dafna1 [17]3 years ago
3 0

Answer:

Exclusivity of the goods and services

Explanation:

The private market suffers as a result of the underprovision of the public goods. When this situation takes place, there is a tendency for the private market to try to develop ways to make the goods excludable. The phenomenon results in an additional problem such as the free rider problem. This is a case where an investment has  a personal cost that is raised. The provision of public goods works when individuals value the benefits of and costs to others in making their consumption choices.

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Consider a 5-step process for the National Corporation that includes cutting, drilling, stamping, welding, and painting. The cut
Amanda [17]

Answer:

\large\boxed{\large\boxed{\text{The capacity of the entire five-step process is 30 units per hour}}}

Explanation:

The rate of production is determined by the slowest step or process.

Determine the rate of production of each step.

<em>1. The Cutting department has 6 machines that each process materials at a rate of 2 minutes per unit. </em>

  • rate = number of machines × rate of each machince

  • rate = 6 × 1 unit / 2 minute = 3 units / minute

<em>2. Drilling has 6 machines that each process materials at a rate of 3 minutes per unit. </em>

  • rate = number of machines × rate of each machince

  • rate = 6 × 1 unit / 3 minute = 2 units / minute

<em />

<em>3. Stamping has 6 machines that each process materials at a rate of 4 minutes per unit. </em>

  • rate = number of machines × rate of each machince

  • rate = 6 × 1 unit / 4 minute = 1.5 units / minute

<em />

<em>4. Welding has 4 machines that each process materials at a rate of 2 minutes per unit. </em>

  • rate = number of machines × rate of each machince

  • rate = 4 × 1 unit / 2 minute = 2 units / minute

<em>5. Painting has 2 machines that each process materials at a rate of 4 minutes per unit. </em>

  • rate = number of machines × rate of each machince

  • rate = 2 × 1 unit / 4 minute = 0.5 units / minute

Then, the fifth process, painting is the slowest process because it only can process 0.5 units per minute. This is the bottleneck. Even if the other processes worked faster, the production could not exceed the number of machines that can be painted per hour.

To find how many units can be painted or produced by hour multiply the rate by the number of minutes in one hour:

  • 0.5 units/min × 60 min/hour = 30 units / hour.

Therefore, the capacity of the entire five-step process is 30 units per hour.

6 0
3 years ago
Charles has decided to open a​ lawn-mowing company. To do​ so, he purchases mowing equipment for ​$​, buys gasoline ​($ in gas i
Masja [62]

Answer: $8,600

Explanation:

Implicit cost is also known as the opportunity cost which means that it is the benefit of the next best alternative that was foregone when the current decision was made.

The implicit cost here is therefore:

The $8,000 that Charles could have been making as a lifeguard.

The interest per year he could have been earning on the $5,000 he used to buy mowing equipment.

The depreciation on the mowing equipment because depreciation is not an explicit cost but an implicit one.

= 8,000 + (2% * 5,000) + (10% * 5,000)

= 8,000 + 100 + 500

= $8,600

6 0
3 years ago
Price is taken to be a given by an individual firm selling in a purely competitive market because.
snow_tiger [21]

Price is taken to be a given by an individual firm selling in a purely competitive market because each seller supplies a negligible fraction of total market.

Purely competitive market refers to a marketing situation in which there are a large number of sellers of a product which cannot be differentiated selling a standardized product and therefore, no single firm has a significant influence on the product price. It is characterized, furthermore, by ease of entry for new companies into the market and perfect market information. Hence, the sellers in such a market are considered to be price takers. Examples of purely competitive market are agricultural products such as wheat or corn.

Learn more about Purely competitive market:

brainly.com/question/15176320

#SPJ4

6 0
1 year ago
Winners of the Georgia Lotto drawing are given the choice of receiving the winning amount divided equally over 2222 years or as
Wewaii [24]

Answer:

0 i.e. zero

Explanation:

The formula we will us to calculate the cash option payout​ for formula for calculating the present value (PV) .

Present value (PV) can simply be described as the current value of a future amount or future stream of cash flows given a certain return rate.

To calculate the PV of a future cash flow, we will discount it by using the discount rate.

The formula is provided as follows:

PV = FV/(1 + r)^n ............................................ (1)

Where,

PV = Present Value = ?

r = discount rate = 66% = 0.66

FV = annual future value = $863,636.36

n = number of years = 2222 years

Note that the annual future value calculated by diving the $1919 million by 2222 years and this give us $863,636.36 (i.e.  1,919,000,000 ÷ 2222 = $863,636.36).

Substituting the figures above into equation (1), we obtain:

PV = 863,636.36/(1 + 0.66)^2222

     = 863,636.36/(1.66)^2222

     = 863,636.36/∞

PV = 0

This is because, the division of any number by infinity is equal to zero. And if we multiply by zero by 2222, it will still give us zero PV.

Therefore, the cash option payout​ will be zero. It is better the winner take the option of collecting $863,636.36.

5 0
3 years ago
Rasmussen Corporation expects to incur indirect overhead costs of $80,000 per month and direct manufacturing costs of $12 per un
vovikov84 [41]

Answer:

Instructions are listed below.

Explanation:

Giving the following information:

Rasmussen Corporation expects to incur indirect overhead costs of $80,000 per month and direct manufacturing costs of $12 per unit. The expected production activity for the first four months of 2017 is as follows: January February March April Estimated production in units 6,000 7,000 3,000 4,000

Estimated manufacturing overhead rate= total estimated overhead costs for the period/ total amount of allocation base

January:

Estimated manufacturing overhead rate= (80,000/6,000)+12= 25.33 per unit

February:

Estimated manufacturing overhead rate= $23.43

March:

Estimated manufacturing overhead rate= 38.67

April:

Estimated manufacturing overhead rate= $32

Allocated MOH= Estimated manufacturing overhead rate* Actual amount of allocation base

January= 6,000*25.33= $151,980

February= 7,000*23.43= $164,010

March= 3,000*38.67= 116,010

April= 4,000*32= $128,000

8 0
3 years ago
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