All categories

3 years ago

Is the free-market quantity of public goods generally greater or less than the efficient quantity?

1 answer:

5 0

The free-market quantity of public goods is generally LESS THAN THE EFFICIENT QUANTITY.
Free market is an idealized system of market where the prices of goods and products are determined by an open market and consumers. In this market system, the government does not impose laws and regulate the market.

You might be interested in

Retail Division $155,800 $550,000 Commercial Division 134,000 330,000 Internet Division 146,400 540,000 Assume that management h

Karolina [17]

The Residual Income for each division:

Retail Division = $4,95,000

Commercial Division = $2,97,000

Internet Division = $4,86,000

Retail Division Commercial Division Internet Division

A. Operating Income $155,800 $134,000 $146,400

B. Minimum acceptable operating income as a % of invested assets:

Retail Division Commercial Division Internet Division

Invested assets $550,000 $330,000 $540,000

(Invested assets x 10%) = $55,000 $33,000 $54,000

C = A - B Residual Income =$4,95,000 $2,97,000 $4,86,000

<h3>What is Residual Income?</h3>

Residual Income refers to a calculation that provides the amount of money leftover that a company or individual has after all expenses have been paid. The amount of money that is left over after all expenses are covered is typically referred to as residual income, profit, net income, or earnings.

One specific type of meaning for residual income is similar to the terms passive income or residual pay—in that it can represent income earned on a continual basis, not tied to specific amounts of time, and not requiring active work to generate.

Learn more about Residual Income on:

brainly.com/question/22985922

#SPJ4

7 0

1 year ago

The Grange is a firm in a monopolistically competitive market that sells farm implements. The firm collected the data below to d

ser-zykov [4K]

Answer:

The profit-maximizing price is $14, and the profit-maximizing quantity is 8.

Explanation:

This is because for a monopolistically competitive firm, the profit-maximizing quantity occurs where marginal revenue equals marginal cost. What the firm does is looking for the point in the demand curve that is exactly above the marginal cost-marignal revenue intersection, and charges the corresponding price and quantity.

We can see that for the quantity of 8, and the price of $14, both marginal revenue and marginal cost are $8, meaning that these are the quantity and price that are profit-maximizing.

5 0

3 years ago

Which of the following is an example of the law of supply?1. The price of gum has increased so producers are making more gum. 2.

polet [3.4K]

Answer:

Option 1 is correct.

Explanation:

Law of supply indicates that there is a positive relationship between the price of a commodity and the quantity supplied of that commodity. This means that an increase in the price of a commodity then as a result there is an increase in the quantity supplied of that commodity because it will become more profitable for the producers to produce more and supply more.

3 0

2 years ago

Uneven distribution of natural resources often leads to countries trading with one another, explain how

sleet_krkn [62]

Answer:

Uneven distribution of natural resources often leads to countries trading with one another, explain how

In ancient times, trade by barter was first employed for trading as a result of uneven distribution of natural resources which calls for need for transacting with other countries. It has greatly benefited countries in such a way that it strengthens the tie between them and make wealth to be well distributed as the country with least natural resources still has something to sell to those with many. e.g Crude oil from Nigeria to other part of the world has made it easier for Nigeria and this still remains their major natural resources used in international trade for money and it has helped to boost their economy since oil was detected.

Explanation:

3 0

3 years ago

There are 100 consumers, each of whom values a concert ticket at a unique whole number dollar amount between $1 and $100. One cu

netineya [11]

Answer:

To total Consumer Surplus in the market = $3,612.50

Explanation:

Quantity demanded:

is the amount that buyers are willing and able to buy at a particular price.

The demand curve:

shows how much buyers are willing and able to buy at different prices.

Consumer surplus is the difference between the maximum price a consumer is willing to pay for a good or service and its market price.

5 0

2 years ago