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Marat540 [252]
2 years ago
10

In a properly functioning economic market, where does the economic value created by firms go? in other words, who gets it? why?

Business
1 answer:
Karolina [17]2 years ago
7 0

The value created by firms in the form of goods and services are distributed among various economic entities that consume them such as private consumers, government etc. But a closed circular flow diagram does not depict the other external values created. For example, a private college is a firm that produces education or provides education as a service to individuals who pay for it. This has a positive externality on society since these students can later teach others in society. Also firms produce under certain conditions and surveillance.

Firms can gain a certain control over society by studying the elasticities of demand. Also, firms generate certain expectations regarding wages and other social benefits. On the other hand, firms are controlled by governmental policies such as minimum wage laws, pricing laws etc. Such policies bind the full potential output if the potential output is not in confluence with social goals or maximization of social welfare.

Learn more about economics here: brainly.com/question/2824360

#SPJ4

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Palmer Products has outstanding bonds with an annual 8 percent coupon. The bonds have a par value of $1,000 and a price of $865.
Andre45 [30]

The yield to maturity on the bonds is 10.0868%

<u>Explanation</u>:

Given,

Annual coupon rate = 8% = 0.08

Par value = $ 1000

Price = $ 865

                               N = 11 \times 1 .

                            PV = $ 865

                         PMT = ( Par Value \times The coupon rate) / F

                                 = ( 1000 \times 0.08 ) / 1

                                 = 80.

                           FV = 1000.

Financial calculator solution

the yield to maturity = I = 0.1008668

                                      = 10.0868% .

6 0
3 years ago
Which of the following personnel policies is not relevant to recruitment
Lena [83]
<span>Lead-the-market pay strategies. An employer may choose to establish an internal compensation strategy that is in excess of the pay rates in the prevailing marketplace. This compensation strategy may increase the supply of candidates, increase selection rates of qualified applicants, decrease employee turnover, increase morale and productivity, or prevent unionization efforts. However, prior to implementing a lead compensation strategy, an organization should carefully consider what benefits it expects to realize from such a strategy, keeping in mind that this type of structure has the greatest propensity of increasing overall labor costs.</span>
4 0
3 years ago
Read 2 more answers
E-Gadgets is a chain of electronics stores that specializes in devices and gadgets incorporating cutting-edge technologies. The
IgorLugansk [536]

Answer:

The correct option is C) place utility

Explanation:

Place utility is the utility which is created for a product by making that product available to near by locations of the customers so that they can easily get access to those products. Same strategy is being applied in the question by E-gadgets , who are making their stores available to such locations , where their customers ( upper middle class and wealthy neighborhoods) can get access to the products easily( less than 15 minutes in the given case).

5 0
3 years ago
Asbestos is commonly found in buildings and structures built before what year ?
Verdich [7]

I just recently learned this myself due to buying an old farm house that was built in the 1970's. Asbestos is commonly found in buildings and structures built before 1981 and is a very harmful thing if inhaled into the body.

6 0
4 years ago
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You have been given the following information for Nicole's Neckties Corp.: Net sales = $2,500,000; Cost of goods sold = $1,300,0
Finger [1]

Answer:

$360,000

Explanation:

Net sales :                 $2,500,000

Cost of goods sold :  ($1,300,000)

Gross profit :              $ 1,200,000

Interest expense :          ($50,000)

Net profit :                  $ 1, 150,000

Retained earning:         ($30,000)

Dividends paid :           ($300,000)

Tax at 40%: =40% * $1,150,000

                                      ($460,000)

Depreciation expense : $360,000

6 0
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