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nikklg [1K]
3 years ago
7

What is a negative externality? Group of answer choices 1. Harm from economic activity that affects persons not involved in the

economic transaction 2. Benefit from economic activity that affects persons not involved in the economic transaction 3. Occurs only when one seller has all the market power 4. Occurs only when people act without the benefit of all relevant information
Business
1 answer:
alukav5142 [94]3 years ago
3 0

Answer:

Option 1 is correct.

Explanation:

There are two types of externality:

(i) Negative externality

(ii) Positive externality

Negative externality:

Suppose there is an economic transaction initiated between the two partners and this transaction reduces the consumption of third person, then this is known as the negative externality.

For example: Smoking is one of the example of negative externality. Smoking a cigarette is not only present in the consumption bundle of a person who smokes but it also affects the health of the other person who stands near that person. So, it reduces the consumption of non smoker.

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8. Chocolates bought at 5 for £6 are sold at 2 for £3, find:
s344n2d4d5 [400]

1. Divide price by quantity:

6/5 = 1.20 each


2. 3/2 = 1.50 each


3. profit/ loss = sold - purchased price

1.50 - 1.20 = 0.30 profit

4 0
2 years ago
Describe an example of a problem that could be solved using the Coase theorem. Do this by defining a hypothetical situation wher
wariber [46]

Answer:

Explanation:

Theorem Utilization: Coase Theorem has been created to take care of the issue of market disappointment. Market disappointment exists where value component doesn't convey productive outcome.  

Example : For instance, dairy cattle of Rancher wandered into close to field. this is a sort of negative externalities. On the off chance that property right is given to rancher, at that point he can sue Rancher for making harm crop. Yet, there is no privilege to rancher, it suggests that privilege has been given to farmer. Presently here rancher will attempt to repay Rancher to lessen the size of his cows group.  

Three necessary conditions:

  1. The rights of property should be well defined.
  2. The rights of property should be transferable.
  3. The cost of transaction must be sufficiently small.

It doesn't make a difference whom property right is given, there will be effective results. Coase hypothesis bombs where haggling cost rises or free rider issues are seen.

3 0
3 years ago
The balance of​ stockholders' equity at the beginning of the year and the end of the year was $ 60 comma 000 and $ 67 comma 000​
Paul [167]

Answer:

Explanation:

Income/ (loss) for the year = Equity balance at the end +dividend paid- equity balance at the beginning

=$67,000+22,000-$60,000

=$29,000

Since  no additional common stock was issued during the year, $29,000 represents income earned during the year before dividend is paid. After dividend of $22,000 has been paid, the balance of $7,000 profit will be added to retained earnings .

8 0
2 years ago
If Bob and Judy combine their savings of $1,260 and $975, respectively, and deposit this amount into an account that pays 2% ann
Andrew [12]

Answer:

The account balance after 4 years will be $2,420.

Explanation:

First we need to add Bob and Judy's amount to find the total amount that will be deposited. (1260+975)=2,235.

Now we will break up the annual interest into monthly interest because it will be compounded monthly. 2/12=0.166.

Then we will break up the 4 years into months also because the interest is compounded monthly. 4*12=48

Now we use the formula for compound interest

Final amount = Principal*(1+R)^N

Principal = 2,235

R= 0.166% or 0.00166

N= 48

We put these values into our formula

2,235*(1+0.00166)^48

=2,420

6 0
3 years ago
According to the multiple levels of analysis anchor:
nirvana33 [79]

ob topics typically relate to the individual, team and organizational levels of analysis.

7 0
2 years ago
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