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2 years ago

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

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Pessimism Suppose the economy is in long-run equilibrium. Then because of corporate scandal, international tensions, and loss of

VladimirAG [237]

Answer:

The correct answer is option C.

Explanation:

Suppose there is pessimism in an economy because of corporate scandals, international tensions, loss of confidence, etc. This is going to adversely affect the economy. Because of corporate scandals, the investment will decline. Loss of confidence in consumers will cause a reduction in consumption spending. International tensions cause net exports to decline.

All of this causes aggregate demand to decline. The aggregate demand curve moves to the left. This leftward shift causes both the quantity of output and price to fall. As output fall real GDP will decline as well.

3 0

3 years ago

Assume you pay $24,000 today in exchange for an annuity with monthly payments, an APR of 6.75 percent, and a life of 15 years.Wh

Fed [463]

Answer:

$212.38

Explanation:

In this question, we use the PMT formula which is shown in the spreadsheet.

The NPER represents the time period.

Given that,

Present value = $24,000

Future value = $0

Rate of interest = 6.75% ÷ 12 months = 0.5625%

NPER = 15 years × 12 months = 180 months

The formula is shown below:

= PMT(Rate;NPER;-PV;FV;type)

The present value come in negative

So, after solving this, the answer would be $212.38

4 0

3 years ago

When reviewing Form 13614-C, you see the "Interest" question is marked "Yes" and the taxpayer gives you a Form 1099-INT. You sho

Olenka [21]

Answer:

True

Explanation:

yes it is true that you should ask the taxpayer if they had any other interest income to avoid double taxation elsewhere

7 0

4 years ago

Honda Motor Company is considering offering a $ 1 comma 800 rebate on its minivan, lowering the vehicle's price from $ 29 comm

zvonat [6]

Answer:

The cost of the rebate is that Honda will sell more vehicles and lose on each additional vehicle sold.

Explanation:

The cost-benefit analysis is a systematic approach that involves finding the marginal costs and marginal benefits associated with a particular decision, and then compare the benefits against the costs to determine whether the decision should be pursued.

To determine the costs and benefits in terms of incremental profits;

Benefit = Profit of $5,090 per vehicle × 13,500 (53200 - 39700) additional vehicles sold = $68,715,000

The cost of the rebate is that Honda will make less on the vehicles it would have sold:

Cost = Loss of $1,800 per vehicle × 39,700 vehicles that would have sold without rebate = $71,460,000.

There, Benefit - Cost = $ (68,715,000 - 71,460,000) = - $2,745,000 and offering the rebate does not look attractive.

The rebate being offered is not a good idea as the cost outweighs the benefit.

5 0

3 years ago

Under the gold standard the fixed price of gold was $20.67 per ounce in the United States. The fixed price of gold was £4.2474 p

madam [21]

The answer of the question is b

6 0

4 years ago