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3 years ago

Suppose that a negative externality is created by the production of good X. Which of the following statements is correct?

Business

1 answer:

notsponge [240]3 years ago

4 0

Answer:

The answer is: A) The social cost of producing good X includes the private cost plus the cost to bystanders of the externality.

Explanation:

Negative externalities are costs suffered by third parties as a consequence of producing a certain product or service. Negative externalities are caused by the consumption of products, but the third parties damaged are no involved in the buyer-seller transaction. Social costs include production costs plus negative externalities.

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As the manager of Margarita Mexican Restaurant, you must deal with a variety of business transactions. Provide an explanation fo

nalin [4]

Answer:

Explanation:

The explanation of the following transactions is given

a. Debit Equipment and credit Cash.

In this transaction, the equipment is purchased for cash so the equipment account is debited and the cash account is credited.

b. Debit Dividends and credit Cash.

In this transaction, the dividend is paid for cash so the dividend account is debited and the cash account is credited.

c. Debit Wages Payable and credit Cash.

In this transaction, the Accrued wages are paid for cash so the wages payable account is debited and cash account is credited.

d. Debit Equipment and credit Common Stock

In this transaction, the equipment is purchased for exchange of the common stock so the equipment account is debited and common stock is credited.

e. Debit Cash and credit Unearned Revenue

In this transaction, the cash is received for service rendered in the future so the cash account is debited and Unearned Revenue is credited.

f. Debit Advertising Expense and credit Cash

In this transaction, the advertising expense is paid for cash so the advertising expense account is debited and cash is credited.

g. Debit Cash and credit Service Revenue.

In this transaction, the cash is received for service performed so the cash account is debited and service Revenue is credited.

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3 years ago

In Ben v. City Car Dealership, a state supreme court held that a minor could cancel a contract for the sale of a car. Now a tria

Neporo4naja [7]

Answer:

The correct answer is D

Explanation:

Under the doctrine of the stare decisis, the court will look into the past or the similar issues in order to guide their decisions related to the issues. And the past decisions are referred or acknowledged as the precedent.

Precedent is the principle or rule which is legal and it is established or created by the decision of the court. And this decision become the authority or the example for judging or deciding the similar issues.

Therefore, in this case, the trial court when deciding upon the case of D v E, will likely to allow or permit the minor to cancel the contract or the agreement.

7 0

3 years ago

The expectations theory of the term structure of interest rates states that forward rates are determined by investors' expectati

ra1l [238]

Answer:

forward rates are determined by investors' expectations of future interest rates.

Explanation:

The expectations theory of the term structure of interest rates states that forward rates are determined by investors' expectations of future interest rates. It suggests that the predicted holding period rate of return of a bond of "x" number of time is equal to the short-term interest rate irrespective of its maturity.

The Expectations theory gives us the opportunity to predict the future outcome of short-term interest rates based on current long-term interest rates.

7 0

3 years ago

A company has set a low price on a new product it introduced. It wants to maximize its market share and attract a large number o

KATRIN_1 [288]

Answer:

A. Market-penetration pricing

6 0

2 years ago

Read 2 more answers

13. In a market system, how are the terms of exchange established? a. Consumer advocacy groups establish fair prices for items,

yuradex [85]

The forces underlying supply and demand interact to determine the market price.

<h3><u>Explanation:</u></h3>

The persons involving in the activities of trading comprises the market system. It includes sellers, buyers and others involved in trading process. They also includes the buyers, consumers, producers who are the major players of the market system who determines the economic activity in it.

The supply and demand law is the major determinant of the production of goods and services in a market economy. The natural resources, land, capital and labor are the supplies. The purchasing power of the government, consumers and business are the demands. The forces underlying supply and demand interact to determine the market price.

3 0

3 years ago