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3 years ago

If a positive externality in consumption is present in a market, then

1 answer:

8 0

Positive externality is a benefit that is enjoyed by a third party as a result of business transaction. Third parties include any individual, property owner or an organisation or a resource that is indirectly affected. If a positive externality in consumption is present in a market, then the private benefit from a consumption will be different than the social benefit from consumption.

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Assume you pay $24,000 today in exchange for an annuity with monthly payments, an APR of 6.75 percent, and a life of 15 years.Wh

Fed [463]

Answer:

$212.38

Explanation:

In this question, we use the PMT formula which is shown in the spreadsheet.

The NPER represents the time period.

Given that,

Present value = $24,000

Future value = $0

Rate of interest = 6.75% ÷ 12 months = 0.5625%

NPER = 15 years × 12 months = 180 months

The formula is shown below:

= PMT(Rate;NPER;-PV;FV;type)

The present value come in negative

So, after solving this, the answer would be $212.38

4 0

3 years ago

Demand for walnut fudge ice cream at the Sweet Cream Dairy averages 5.9 gallons per day. The dairy uses a continuous review (reo

RSB [31]

The optimal reorder point of Sweet Cream Dairy is 27.71 or 28 (rounded off) and Safety stock is 15. 91 or 16 gallons (rounded off)

Explanation:

the reorder point is to multiply the average daily usage rate for an inventory item by the lead time in days to replenish it.

The safety stock formula with standard deviation is more complicated but also more accurate.

Safety stock = desired service level × standard deviation of lead time × demand average

Safety stock = ( 93÷100) × 2.9 × 5.9 = 15. 91 or 16 gallons (rounded off)

$Safety stock = ( 93÷100) × 2.9 × 5.9 = 15. 91 or 16 gallons (rounded off)$

Reorder Point = (Average Daily Usage x Average Lead Time in Days) + Safety Stock

= (5.9 x 2) + 15. 91 = 11.8 + 15.91 = 27.71 or 28 (rounded off)

$= (5.9 x 2) + 15. 91 = 11.8 + 15.91 = 27.71 or 28 (rounded off)$

7 0

2 years ago

If an investment is considered ��volatile��, it means... athe investment will experience rapid growth over time. bthe value of

Ann [662]

The value of the investment could be unpredictable when the investment is volatile. To add up, the fluctuation patterns of the value could be a lot different than it should be. It can be observed in a graph that the curve just suddenly rises and falls covering only a smaller amount of time.

4 0

3 years ago

Read 2 more answers

When the price of a good increases, it undoubtedly hurts individual consumers, since they now have to pay more for a particular

ludmilkaskok [199]

Answer:

The answers that apply are:

(B) The price for a hunting license is increased in an effort to reduce the number of hunters.

Explanation:

Hunting is a practice that governments are trying to control and decrease. So if government want to decrease the amount of people hunting they should increase the price of the licence.

Smoking is unhealthy, so the law increase the price for healthy reasons.

5 0

3 years ago

You are evaluating a project that will cost $500,000, but is expected to produce cash flows of $125,000 per year for 10 years, w

boyakko [2]

Answer:

1. 4 years

2. No

Explanation:

Payback period calculates the amount of time to recoup the total investment made on a project. It calculates how long the cash flows generated from a project would cover the cost of the project.

The cost of the project is $500,000

Cash flows are $125,000 per year for 10 years.

In the first year, the cost of the project is reduced by $125,000 and becomes $375,000.

In the second year, the cost of the project is reduced by $125,000 and becomes $250,000.

In the third year, the cost of the project is reduced by $125,000 and becomes $125,000.

In the fourth year, the cost of the project is reduced by $125,000 and becomes $0.

The cost of the project is totally recouped in the 4th year. therefore, the payback period is 4 years.

But the company has a preferred payback period of 3 years ,therefore , the firm won't undertake the project because the payback period is more than 3 years.

3 0

3 years ago