Internalizing a positive externality will result in the demand curve to 'shift to the right'. Therefore, option A <em>'shift to the right' </em>is the correct answer.
A positive externality exists if the consumption and production of a service or good benefits a third party that is not directly involved in the market transactions. When a company <em>internalizes </em>a positive externality, then the demand for its products and services would increase. Since this improves the delivery of goods and services with improved quality to consumers without having any direct motives to increase the monetary income of the company. This is clearly a positive boosting factor for the company, which in turn, will increase the demand for the company's goods and services and shift the curve to the right.
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Answer:
$192,000
Explanation:
Data provided in the question:
Value of the house with three bedrooms, 2.5 bathrooms, and no patio = $200,000
Value of half bath = $10,000
Value of patio = $2,000
Now,
The comparable house has 0.5 bath less and 1 patio
Therefore,
While calculating the adjusted value of the comparable value of half bath will be deducted and value of patio will be added
Thus,
The adjusted value of the comparable = $200,000 - $10,000 + $2,000
= $192,000
Answer:
Items a) and b)
a) items used currently in the production of goods to be sold items
b) held for resale items currently in production for future
Explanation:
Inventory consists of current assets to be used in production of final goods or are the ones which are final goods and held for sale.
In the given case also, statement a includes raw materials, which are used to make the final good to be sold, which is a part of inventory.
Further, statement b includes work in production or final goods which are currently in production but would be resold.
The items which are kept for their use as like machinery or furniture or which shall be disposed are not inventory but are in fixed assets category.
Answer:
$1,125,000
Explanation:
Given;
Gain from asset disposal = $225,000
Book value of asset disposed = $900,000
Therefore,
Amount of cash received from the sale = $900,000 + $225,000
= $1,125,000
This represents an inflow of cash and will be represented by a positive value in the statement of cash flows. The total amount reported in the cash flows from investing activities section of the statement of cash flows is $1,125,000
