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2 years ago

When a _ externality exists the socially optimal level of output will be greater than that resulting from a _ market.

1 answer:

6 0

When a positive externality exists the socially optimal level of output will be greater than that resulting from a private market.

The output level that takes into account all of the benefits and drawbacks of a transaction, or the equilibrium that would be reached if the results of the market took into account the impact of externalities.

"The ideal distribution of resources in society, taking into consideration all external costs and benefits as well as internal costs and advantages," is how economists define a "socially optimal solution."

The distribution that a charitable social planner chooses, limited solely by the endowment of resources, is the social optimum. In general, the social optimum will not be possible if the social planner's policy tools are constrained.

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Pavel [41]

Answer:

C. $19,500 if this amount is not material, Big Homes expects to continue the practice of offering rebates in future years, and Big Homes expects to pay the accrued rebates before filing their tax return for this year.

Explanation:

They are viewed in the tax law as a reduction to the purchase price of the item. Thus, this decreases the income from the houses.

Is important to consider that this must be part of the commercial activity from Big Homes and in subsequent years this rebates will continue to occur.

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4 years ago

Taylor Company has current sales of 1,000 units, which generates sales revenue of $190,000, variable costs of $76,000 and fixed

Leya [2.2K]

Answer:

The change in net operating income after the changes by $14,200

Explanation:

For computing the change in net operating income, first, we have to compute the contribution per unit which is shown below:

Contribution per unit = Selling per unit - variable cost per unit

= $190 per unit - $76 per unit

= $114 per unit

where,

The selling per unit = (Sales revenue ÷ number of units)

= ($190,000 ÷ 1,000 units)

= $190 per unit

The variable cost per unit = (variable cost ÷ number of units)

= ($76,000 ÷ 1,000 units)

= $76 per unit

Now the change in operating income equals to

= (increased sales units × contribution per unit) - advertising cost

= (300 units × $114 per unit) - $20,000

= $34,200 -$20,000

= $14,200 increase

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4 years ago

People who are unemployed because wages are, for some reason, set above the level that brings labor supply and demand into equil

denpristay [2]

Answer:

A. Structurally unemployed.

Explanation:

The natural rate of unemployment includes both unemployment created by job search and unemployment created by above equilibrium wages. When a union raises the wage above the equilibrium level it raises the quantity of labor supplied and reduces the quantity of labor demanded, resulting in unemployment. We know, structural unemployement are caused by mismatch between demand and supply of required skill or wages in the labor market, that´s why it is also called involuntary unemployment.

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3 years ago

Imagine that the United States and Mexico produce only sugar and oil. The United States can produce a barrel of oil at an opport

r-ruslan [8.4K]

Answer:

Explanation:

If Mexico and the United States faced these opportunity cost, then to benefit from trade Mexico should specialize in producing OIL–. That is, UNITED STATES– would use some of the oil it produces and export the rest to MEXICO– in exchange for sugar. In order for the trade to be beneficial to both nations, the trade ratio must be between 2 and 3– tons of sugar per barrel of oil.

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3 years ago

If someone had $5,000 and wanted to place it in a financial institution, what type of institution and account would you suggest

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4 years ago

When a _____ externality exists the socially optimal level of output will be greater than that resulting from a _____ market.

When a _ externality exists the socially optimal level of output will be greater than that resulting from a _ market.