Answer:
Refer explanation...
Explanation:
A negative externality occurs when the production or consumption of a good or service creatives a negative impact on a third party. Hence, the social cost is higher than the private cost.
I have provided 4 examples of negative externalities below, although the requirement is 3 :)
A. Negative externalities in production:
1. When rainforests are cut down for animal rearing, it leads to an increase in CO2 in the atmosphere which can damage the ozone layer and cause global warming.
2. Using pesticides on vegetation protects them from insects, however it leads to harmful carcinogens to enter the environment and create pollution.
B. Negative externalities in consumption:
1. Consumption of cigarettes may deteriorate the health of those around, who are vulnerable to passive smoking.
2. Alcohol consumption develops drunk drivers who increase the risk of car accidents and social disorder.
Market failure occurs when the price mechanism fails to incorporate all the costs and benefits involved in the production or consumption of a particular good or service. The market fails by not being able to supply the socially optimum level of output of a good or a service. Hence there is an over-consumption of a good that creates negative externalities or under-consumption of a good that produces positive externalities.
Answer:
(a) $9; 30%
(b) $21,000; 700 units
Explanation:
Given that,
Units sold = 800
Average sales price = $30
Fixed costs = $6,300
Variable costs = 70% of sales
(a) Contribution margin per unit:
= Selling price per unit - Variable cost per unit
= $30 - (70% × $30)
= $30 - $21
= $9
Contribution margin ratio:
= Contribution margin per unit ÷ Selling price
= $9 ÷ $30
= 30%
(b) Break-even sales (in dollars):
= Fixed costs ÷ Contribution margin ratio
= $6,300 ÷ 30%
= $21,000
Break-even sales (in units):
= Fixed costs ÷ Contribution margin per unit
= $6,300 ÷ $9
= 700 units
Answer:
False.
Explanation:
An attractive industry are not one that is characterized by high entry barriers, suppliers and buyers with strong bargaining power, low threats from substitute products, and low rivalry among firms.
An industry is defined by a group of firm that produce good and service, which are close subtitute and bargaining power of supplier are not considered as entry barrier to a firm in the open market. Industry with high fixed cost can pose high degree of rivalry among firm.
Answer:
initial cash flow is 2,929,000
Explanation:
Attached is the table
Answer:
$52,285
Explanation:
The computation of the total manufacturing cost assigned to Job P is shown below:-
Total manufacturing cost = Direct material + Direct labor + Manufacturing overhead applied
= $13,000 + $21,000 + (2,300 × $7.95)
= $13,000 + $21,000 + $18,285
= $52,285
Therefore for computing the total manufacturing cost assigned to Job P we simply applied the above formula.
