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Yuri [45]
3 years ago
15

When producers do not have to pay the full cost of producing a product, they tend to:a. overproduce the product because of a neg

ative externality. b. underproduce the product because of a positive externality. c. overproduce the product because of a positive externality. d. underproduce the product because of a negative externality.
Business
1 answer:
victus00 [196]3 years ago
8 0

Answer:

The most applicable answer from my point is in such a scenario, producers overproduce the product because of a supply-side market failure.

Explanation:

So what is market failure? Simple, Market failure occurs when a market is unable to effectively and efficiently manage its resources because of the breakdown of price mechanisms functions which rare caused by negative and sometimes positive externalities.

In here, Supply side market failure occurs when the producers don't have to pay the full cost of their output. That is the actual cost of production is greater that the recorded cost.

In Market failure, the supply and demand of the market do not meet the equilibrium price and quantity and eventually leads to the loss of social welfare and ineffective economic decision making.

Imperfect information in the market and the increase of power in the sellers side could lead to supply side market failure.

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Key assets represent knowledge that your business has that is critical to the operation of your business. ... Basically, anything about your business that is essential to its core operation would be considered a knowledge asset.

5 0
3 years ago
Read 2 more answers
A trucking company sold its fleet of trucks for $55,400. The trucks originally cost $1,426,000 and had Accumulated Depreciation
victus00 [196]

Answer:

Loss of $97,600

Explanation:

From the question above a trucking company sold its fleet for $55,400

The truck original cost is $1,426,000

The depreciation is $1,273,000

The first step is to calculate the book value

Book value= cost-accumulated depreciation

= $1,426,000-$1,273,000

= $153,000

The next step is to subtract the book value from the cost to determine if it a gain or loss

= $55,400-$153,000

= -97,600

Since the value is negative then, the trucking company is at a loss of $97,600

4 0
3 years ago
A study published in 2011 by the OECD noted that Group of answer choices the real household income of unskilled workers in the U
slavikrds [6]

Answer:

the gap between the poorest and richest segments of society in some OECD countries had widened.

Explanation:

A study published in 2011 by the Organisation for Economic Co-operation and Development (OECD) noted that the gap between the poorest and richest segments of society in some Organisation for Economic Co-operation and Development (OECD) countries had widened.

8 0
3 years ago
XYZ has a current market price of $30.00 per share with earnings last year of $2.50 per share, a beta of 1.1 and a dividend of $
Nutka1998 [239]

Answer:

The expected price for the stock is $36

Explanation:

The price earning multiple is a measure that provides the information regarding how much are the investors willing to pay for each $1 of earnings per share. The formula for price earnings multiple is,

P/E = Price per share / Earnings per share

Based on the information, the P/E multiple for XYZ is,

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Using this price / earnings multiplier, we calculate the price at which the stock will trade as,

12 = Price per share / 3

12 * 3 = Price per share

Price per share = $36

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3 years ago
Which of the following is not a tool of Monetary Policy?
abruzzese [7]

Answer:

D. Changes in federal expenditures

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3 years ago
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