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.
Walt Disney held the patent for Technicolor for 2 years.
Hope this helps! :D
~PutarPotato
Answer:
2.24 times
Explanation:
The formula and the computation of the current ratio is shown below:
As we know that
Current ratio = Current assets ÷ current liabilities
where,
Current assets = Prepaid rent + office supplies + account receivable + cash
= $2,500 + $1,300 + $6,600 + $3,500
= $13,900
And, the current liabilities is
= Account payable + salaries payable
= $3,600 + $2,600
= $6,200
So, the current ratio is
= $13,900 ÷ $6,200
= 2.24 times
It helps expand the operation so more people know about it. Hope that helped :)
