Answer:
They are equal
Explanation:
Negative externality is when the benefits of economic activities to third parties is less than its costs.
A tax is levied on negative externality to reduce quantity produced to the social optimal quantity.
If the amount of tax is equal to the amount of total negative externality, then after-tax equilibrium quantity will be equal to social optimal quantity.
If the amount of tax is less than the amount is equal to the amount of total negative externality, then after-tax equilibrium quantity will be greater than the social optimal quantity.
If the amount of tax is greater than the amount is equal to the amount of total negative externality, then after-tax equilibrium quantity will be less than the social optimal quantity.
I hope my answer helps you
Answer:
Market testing
Explanation:
Market testing is the stage of the new-product process that involves exposing actual products to prospective consumers under realistic purchase conditions to see if they will buy.
This is done in order to prepare the product according to the market it is being launched in. It helps the product developers to get rid of any loopholes that might hinder the success of the product in a specific market.
Answer:
GDP is an imperfect measure of Economic well being because of : Production of - Non Monetary Exchange goods , Positive & Negative Externalities goods, Negative Impact goods.
Explanation:
GDP is the total value of goods & services produced by an economy during a period of time.
Although reflecting flow of goods & services in an economy, GDP is still not a perfect measure of well being because :
- Non Monetary Exchange Goods : Services of family members (housewives), leisure production (eg painting) are non monetary.
- Positive & Negative Externalities Goods: Benefit or harm to un-involved party, without any monetary exchange. Eg - Education, Pollution.
- Negative Impact Goods : Goods consumption leading to well being loss rather than well being gain. Eg- Addiction (Alcohol / Smoking).
All these goods change well being : Non Monetary Exchange Goods increase well being , Positive Externalities increase welfare , Negative Externalities decrease welfare , Negative Impact goods decrease welfare.
But, these are still not included in GDP evaluation. So, all these make GDP an imperfect measure of well being.
Answer:
Objective function (maximize)
Constraints
- Availabitily of salt: 
- Availability of herbs: 
- Availability of flour: 
Explanation:
This a linear programming problem. We have an objective function (in this case it is the profit) that we want to optimize, but complying with constraints (in this case, the availability of ingredients).
The objective function can be defined taking into account the profits of the two kind of chips:
The constraints can be expressed taking into account the amount of ingredients every unit of chip needs and stating that it has to be less or equal to the availability of this ingredient:
- Availabitily of salt:
- Availability of herbs
- Availability of flour
With these expressions the linear programming problem can be solved.
Answer:
<em>C. $0 dividend income and a tax basis in the new stock of $56.25 per share</em>
Explanation:
Existing tax basis
= 300 shares * $90
= $27,000
Latest stocks attributable to stock dividend to be given to Diana,
= 300 * 3/5
= 180
Therefore the total number of shares will be, after dividend,
= 180 + 300
= 480
So new tax basis per share
=27,000 / 480
<u><em>= $56.25</em></u>
