Answer:
Leads the economy to the wrong mix of output
Explanation:
Market failure is the when there is an inefficient distribution of goods and services in the free market.
One of the types of market failure is externality
Externality is when the production or consumption activities of economic agents have effects on people not involved in the economic activity. Externality can either be positive or negative
A good has positive externality if the benefits to third parties not involved in production is greater than the cost. an example of an activity that generates positive externality is research and development. Due to the high cost of R & D, they are usually under-produced. Government can encourage the production of activities that generate positive externality by granting subsidies.
A good has negative externality if the costs to third parties not involved in production is greater than the benefits. an example of an activity that generates negative externality is pollution. Pollution can be generated at little or no cost, so they are usually overproduced. Government can discourage the production of activities that generate negative externality by taxation
Answer:
Option B is the correct answer,1.05
Explanation:
Present value index can be computed using the below formula:
present value index=present value of cash inflows/initial amount invested
present value of cash inflows=annual net cash flow*present value factor of annuity
annual net cash flow=$93,750
present value factor of annuity=4.212
present value of cash inflows=$93,750*4.212=$394,875.00
initial amount invested is $375,000
present value index=$394,875.00/$375,000
=1.053
The present value index of this project is approximately 1.05,which is the option B in the multiple choices
Opportunity often comes and it is a potential situation that a firm is equipped to take advantage of.
<h3>What is Opportunity?</h3>
Opportunity are potential that equipped a firm to take advantage of opportunities .
This is related to market, as it helps analyse external opportunities.
Therefore, opportunity often comes and it is a potential situation that a firm is equipped to take advantage.
Learn more on market opportunity here,
<em>brainly.com/question/8493674</em>
Answer:
true
I hope it is helpful to you
Answer:
Dr goodwill impairment $34200
Cr goodwill $34200
Explanation:
The fact that the fair value of Blossom’s net identifiable assets is less than the carrying value is a strong indication that the goodwill has been impaired and the impairment is computed thus:
Goodwill impairment=Fair value of net assets-carrying value
fair value of net assets=$820,800
Carrying value of net assets=$855,000
goodwill impairment=$855,000-$820,800=$34200
The double entries would be a debit to goodwill impairment loss account in the statement of profit or loss and a credit to goodwill.
