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stiv31 [10]
3 years ago
11

Suppose that smoking creates a negative externality. If the government does not interfere in the cigarette market, then a. the e

quilibrium quantity of cigarettes smoked will equal the socially optimal quantity of cigarettes smoked. b. the equilibrium quantity of cigarettes smoked will be greater than the socially optimal quantity of cigarettes smoked. c. the equilibrium quantity of cigarettes smoked will be less than the socially optimal quantity of cigarettes smoked. d. There is not enough information to answer the question.
Business
1 answer:
Alexxx [7]3 years ago
5 0

Answer:

b. the equilibrium quantity of cigarettes smoked will be greater than the socially optimal quantity of cigarettes smoked.

Explanation:

A negative externality occurs when the costs of economic activities to third parties not involved in economic activities are greater than the benefits.

Negative externality are usually overproduced in the economy. so, the equilibrium quantity of cigarettes smoked will be greater than the socially optimal quantity of cigarettes smoked.

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How can taxes be used by the government to encourage or discourage the use of a
SVEN [57.7K]

Answer:

Taxes can be used to increase the price of producing or selling something which discourages firms from engaging in that activity.
If the government wants to encourage a particular activity, they could subsidize firms who engage in it.

For example there are extra taxes on cigarettes because the government sees them as harmful, these extra taxes increase the price of ciggarettes.

6 0
2 years ago
Using this table, calculate the profit at each level of running shoe inserts production. Pair 1: $ Pair 2: $ Pair 3: $ Pair 4: $
Aloiza [94]

Based on the total cost, total revenue, and pair of shoes, the profit level at every level of running shoe production are:

  • Pair 1 - $23
  • Pair 2 - $51
  • Par 3 -$80
  • Pair 4 - $109
  • Pair 5 - $137

<h3>What are the profits at each level?</h3>

The profit can be found as:

= Total revenue - Total cost

At first level:

= Total revenue - total cost

= 30 - 7

= $23

At pair 2:

= Total revenue - total cost

= 60 - 9

= $51

At pair 3:

= Total revenue - total cost

= 90 - 10

= $80

At pair 4:

= Total revenue - total cost

= 120 - 11

= $109

At pair 5:

= Total revenue - total cost

= 150 - 13

= $137

The total profit is increasing because the total revenue is increasing significantly yet the total cost is only increasing marginally.

In conclusion, the profit is increasing more because cost is increasing less.

Find out more on total profit at brainly.com/question/1078746

#SPJ1

6 0
2 years ago
What are the kinds of purchases for which you’ll "spare no expense"? What kinds of purchases do you want to buy spending as litt
Maurinko [17]

Answer:

"Spare no Expense" Purchases

When purchasing long-term items (assets) which cannot be consumed within a short-term period, one tends to "spare no expense."  These purchases are dictated by their quality and not price.  For example, in constructing a building an individual or an entity does not consider the price as a deciding factor.  Instead, the entity goes for the best quality at whatever price.  In such a situation, it can be described as "sparing no expense" because it can spend as possible as is needed to ensure that the quality of the construction was of the highest standard.  A wealthy man does not spare any expense to receive medical treatment.  Vacationists spare no expense to go on vacation

These purchases or items come with high prices and they last longer than a year.

On the other hand, one does not want to spend much resources on goods that are not durable.  So, the person involved tend to spend as little as possible.  No one wants to buy expensive food items.  But, the same person can pay for an exorbitant car.  No one wants to expend much resources on inner wears, but the same person can spend thousand for the outer wears, to put up appearances.

Ostentatious goods that convey image attract higher prices much more than private goods that others co not care whether you use them or not.  This accords with our human natural way of believing in appearances.

The major factors that differentiate between these two categories that drive our attitude regarding price include:

a) Scarcity, b) Longevity, c) Quality, d) Price, e) Durability, f) Ostentation

Explanation:

The expression "spare no expense" means to spend as much financial resources as needed in order to make something happen or bring about an outcome.

3 0
3 years ago
Lester's Fried Chick'n purchased its building 11 years ago at a cost of $189,000. The building is currently valued at $209,000.
liberstina [14]

Answer:

$251,000

Explanation:

The computation of the total  book value of the firm's assets is shown below:

= Historical cost of building + cost of other fixed asset - total depreciation charged on the various assets + current liabilities + net working capital

= $189,000 + $56,000 - $49,000 + $36,600 + $18,400

= $251,000

We added the other cost which is computed above and deduct only the total depreciation so that the total book value of the firm's asset has come

4 0
3 years ago
Explain how direct materials standards and direct labor standards are set.
shepuryov [24]

The standard price per unit for direct materials must reflect the final, delivered cost of the materials, net of any reductions taken. the standard charge is for a specific grade of fabric, purchased particularly lot sizes, and brought by means of a selected type of provider.

Direct materials and direct labor standards can be decided consistently with units without determining in advance the range of units to be manufactured. but because of some constant manufacturing unit overhead prices, it is hard to say that the overhead fee could be Rs X according to the unit.

The predicted rate of materials in keeping with the unit and the predicted quantity usage is needed to help determine a widespread.

Manufacturing companies regularly establish fashionable costs for direct hard work, direct materials, and manufacturing overhead. Well-known cost information comes from a number of resources together with ancient data, product specifications mentioned via product engineers, contracts with suppliers, and hard work union contracts.

Learn more about Direct materials here: brainly.com/question/25790358

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6 0
1 year ago
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