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patriot [66]
3 years ago
8

If the marginal social benefit of consuming a good or a service exceeds the marginal private cost (A) a negative externality exi

sts.(B) the market achieves economic efficiency.(C) the sum of consumer surplus and producer surplus is maximized.(D) a positive externality exists.
Business
1 answer:
Vlad1618 [11]3 years ago
4 0

Answer:

The correct answer is option D.

Explanation:

An externality can be defined as a situation in which the benefit or cost resulting from an activity is received or incurred by a third person.

A positive externality means a third person receives the benefits of someone else's activities.

If the marginal social benefit earned from the consumption of a good is higher  than the marginal private cost incurred then in that case we can say that a positive externality exists in the market.

People have to pay less but are having greater profit.

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If the minimum attractive rate of return is 7%, which alternative should be chosen assuming identical replacement (like kind exc
ira [324]

Answer:

The alternative that should be chosen assuming identical replacement is:

Alternative B.

Explanation:

a) Data and Calculations:

Alternatives:

                                                A            B

First Cost                           $5,000     $9,200

Uniform Annual Benefit     $1,750      $1,850

Useful life, in years                4              8

Rate of return                       7%            7%

Annuity factor                   3.387          5.971

Present value of annuity $5,927.25 $11,046.35

Net cash flow                 $927.25     $1,846.35

b) Alternative B yields a higher return than Alternative A.  Since the two alternatives are based on the same rate of return, Alternative B will bring in a higher annual benefit, even when discounted to the present value.

7 0
2 years ago
SWH Corporation issued bonds on January 1, 2004. The bonds had a coupon rate of 5.5%, with interest paid semiannually. The face
Mashutka [201]
It should be the Second one that fits the best answer
4 0
3 years ago
When countries sell off state-owned enterprises and privatize them, it usually results in a(n)A. continuing drain on future natu
babymother [125]

Answer:

C. increase in modernization by new investors.

Explanation:

Privatization is the transfer of ownership of property or business owned by government to a private entity.

Privatization generates capital to be invested in strategic areas and help to reduce the continuing drain on future natural resources. The new private investors causes economic growth by modernizing the acquired property or business from the government.

5 0
3 years ago
intext:"A corporation issued 6,000 shares of its $2 par value common stock in exchange for land that has a market value of $84,0
guajiro [1.7K]

Answer:

Date     Account Titles and Explanation              Debit       Credit

              Land                                                         $84,000

                 Common stock                                                     $12,000

                  Paid in capital in excess of par value                 $72,000

Workings:

Amount of Common stock = Number of shares * Paid in capital per share

= 6,000 shares * $2

= $12,000

Amount of excess of paid in capital = Market value of land - Amount of common stock

= $84,000 - $12,000

= $72,000

8 0
3 years ago
Kim is on a crew that sets up the equipment for a very popular musician. Before the concerts, she sets up lights, microphones, s
andrew11 [14]

Answer:

✔ Audio and Video Equipment Technician

✔ Broadcast Technician

✔ Film and Video Editor

✔ Sound Engineering Technician

Explanation:

5 0
3 years ago
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