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Romashka-Z-Leto [24]
2 years ago
10

A firm offloads some of its production costs to 3rd parties. This would contribute to market failure because

Business
1 answer:
ehidna [41]2 years ago
6 0

The activity of the firm contributes to market failure because it leads to negative externlity.

<h3>What is negative externlity?</h3>

Negative externality occurs when the costs of economic activities is greater than the benefits to third parties not involved in production is greater than the benefits.  An example of an activity that generates negative externality is pollution.

To learn more about externalities, please check: brainly.com/question/26266710

You might be interested in
If the rate of inflation in Japan dramatically increases while the rate of inflation in the United States remains constant, then
sveticcg [70]

Answer:

a

Explanation:

Inflation is a persistent rise in the general price levels

Types of inflation

1. demand pull inflation – this occurs when demand exceeds supply. When demand exceeds supply, prices rise

2. cost push inflation – this occurs when the cost of production increases. This leads to a reduction in supply. Higher prices are the resultant effect  

When inflation increases , the value of currency falls

As a result of the inflation, the value of japans currency would fall.

As a result, it would become more expensive to purchase dollars by those in japan. Thus the demand for dollar would reduce and it would shift to the left

3 0
3 years ago
Allo Foundation, a tax-exempt organization, invested $200,000 in cost-saving equipment. The equipment has a five-year useful lif
murzikaleks [220]

Answer:

$34,310.45

Explanation:

Net present value is the present value of after-tax cash flows from an investment less the amount invested.  

NPV can be calculated using a financial calculator  

Only projects with a positive NPV should be accepted. A project with a negative NPV should not be chosen because it isn't profitable.  

When choosing between positive NPV projects, choose the project with the highest NPV first because it is the most profitable.

Cash flow in year 0 =  $-200,000

Cash flow in year 1 - 5 = 65,000

I = 12%

NPV = $34,310.45

To find the NPV using a financial calculator:

1. Input the cash flow values by pressing the CF button. After inputting the value, press enter and the arrow facing a downward direction.

2. after inputting all the cash flows, press the NPV button, input the value for I, press enter and the arrow facing a downward direction.  

3. Press compute  

6 0
3 years ago
On January 2, 2017, a calendar-year corporation sold 5% bonds with a face value of $2500000. These bonds mature in five years, a
Oksanka [162]

Answer:

Consider the following explanation

Explanation:

Under Effective interest method, Interest calculated at the effective interest rate (i.e., the yield of the bond) is charged as an expense annually, and the payment made basis the Coupon rate.

In the given case, interest to be paid semi annually i.e, on June 30 and on December 31, will be $62,500 (i.e., 2,500,000 * 5% * 6/12).

On the basis of above, the interest expense to be charged in the 2017 can be calculated as follows: take a look to the attached archive.

As calculated above, the amount to be charged as interest expense for the year 2017 is (80,220 + 80,840 i.e.,) $ 161,060.

Download xlsx
3 0
3 years ago
How does lack of a good transportation system cause labour inefficiency (economics)
taurus [48]
Because good transportation will provide jobs so if you do not have a good transportation system there will be lost jobs also a lack of good transportation will increase congestion on roads.
6 0
3 years ago
Suppose there are five suppliers of ice cream in the town of Summerville. When the price of ice cream is $2 per scoop, Firm A is
victus00 [196]

Answer:

the market quantity supplied is less than 250 scoops when the price is $2 per scoop

Explanation:

When price is $2, the total quantity supplied = 20 + 50 + 35 + 100 + 40 = 245

At the price $2, the total quantity supplied is less than 245

3 0
3 years ago
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