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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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The two characteristics of a competitive market are 1) many buyers and sellers in the market and 2) the goods offered by the var

FrozenT [24]

Answer:

1. True

2. False

Explanation:

A perfect competition is characterised by many buyers and sellers of homogenous goods and services. Market prices are set by the forces of demand and supply. There are no barriers to entry or exit of firms into the industry.

In the long run, firms earn zero economic profit. If in the short run firms are earning economic profit, in the long run firms would enter into the industry. This would drive economic profit to zero.

Also, if in the short run, firms are earning economic loss, in the long run, firms would exit the industry until economic profit falls to zero.

An example of perfect competition is the market for farm produce.

I hope my answer helps you

5 0

3 years ago

You are planning to buy 2019 MINI Cooper on a loan. Price of the car is $26,000. You are planning to make monthly payments for t

Sergeu [11.5K]

Answer:

$1,223.91

Explanation:

As per the concept of time value of money, the value of money today is more than the value of money tomorrow.

Given:

Price of car = $26,000

Interest rate 12%, compounded monthly

Tenure = 2 years

Now, Price of the car is the value of money today to purchase the car. So, while computing the monthly payment for car $26,000 will be considered as present value.

Monthly payment for car can be computed easily using Microsoft excel.

Use the following mentioned formula to calculate the monthly payment.

"=PMT(rate,nper,pv,[fv])"

wherein,

Rate = 12%/2 (because it has been compounded monthly)

nper = 2*12 (because 2 years are to be compounded monthly.)

Pv = $26,000 (as mentioned earlier)

Since, there is no Fv so it blank.

5 0

4 years ago

Cognitive dissonance occurs during which stage of the consumer decision-making process? A. problem recognitionB. information sea

Rainbow [258]

Answer:

Explanation:

Cognitive dissonance is sometimes referred to as buyer's regret and often arises when consumers begin to wonder if they made the right purchase decision. This happens during the post-purchase evaluation stage.

5 0

3 years ago

During 2020, Karen Building Company constructed various assets at a total cost of $12,600,000. The weighted average accumulated

Ivan

Answer:

a. $842,250

b. $842,250

Explanation:

The computation is shown below:

a. For avoidable interest

Weighted average Interest rate applied avoidable interest

accumulated expenditures

$5,205,000 10% $520,500

$2,925,000 11% $321,750

Total $842,250

($8,130,000 - $5,205,000)

Working note for interest rate applied

Particulars Principal Interest

12% ten year bond $6,047,000 $725,640

9% 3 year bond $3,023,500 $272,115

total $9,070,500 $997,755

Now the interest rate is

= $997,755 ÷ $9,070,500

= 11%

2. Now the total interest capitalized is

Total interest is

= $520,500 + $725,640 + $272,115

= $1,518,255

And, the total avoidable interest is $842,250

So we considered the lesser amount i.e. $842,250

6 0

3 years ago

The diagram shows the three-step process by which economic policy is created.

kifflom [539]

In building a sustainable economy, there are three-step process that should be followed :

First , Shift towards a new business model that generate a shared value

Second, Create Assets' ownership structures

Third, involves indicators that indicate progress, such as social and health indicators

8 0

3 years ago