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marta [7]
2 years ago
6

Taxes cause deadweight losses because they

Business
2 answers:
Ray Of Light [21]2 years ago
6 0

Answer:

The correct answer is C. All of the other options are correct.

Explanation:

In economics, it means that there is a loss of surplus because the imposition of taxes discourages the exchange of goods and services. This can be interpreted in the behavior of the consumer and seller, since their action is executed directly in the buying and selling processes. When the buyer's benefit from acquiring a good is modified by a high tax rate, then a decline in the purchase may occur to avoid incurring high costs.

vitfil [10]2 years ago
5 0

Answer:

All of the other options are correct.

Explanation:

Deadweight losses can be described as losses that is made to the economy, this is as a result of taxes or price control. Deadweight losses occur when supply and demand are not balanced, if this happens it will eventually lead to market inefficiency.

Taxes can be defined as the amount of money charged by the government which is above the selling price of a particular good or service.

Taxes can lead to deadweight loss when there is an increase in the price of a product which will eventually lead to a drastic decrease in the demand of the product.

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What is customer service and why it important​
Shtirlitz [24]

Answer:

is the fact of taking care of the customer's needs by providing and delivering professional, helpful, high quality service and assistance before, during, and after the customer's requirements are met

Increase the amount of money each customer spends with your business. Increase how often a customer buys from you.

4 0
2 years ago
Read 2 more answers
How does inertia affect a person who is not wearing a seatbelt during a collision?
Zepler [3.9K]
The passanger will move with the collision
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3 years ago
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A company will buy 1000 units of a certain commodity in one year. It decides to hedge 80% of its exposure using futures contract
Nataliya [291]

Answer:

$96 per unit

Explanation:

The computation of the average price paid for the commodity is shown below:

Average price = Total cost ÷ Total number of units

where,

Total cost = Total number of units buyed × spot rate - hedge fund

where,

Hedge fund is

= 1,000 × 80% × ($110 - $90)

= $16,000

So, the total cost is

= 1,000 units × $112 - $16,000

= $96,000

Now the average price is

= $96,000 ÷ 1,000 units

= $96 per unit

6 0
3 years ago
A(n) _____ typically addresses contributions to government officials and political parties, customer and supplier relations, con
tekilochka [14]

Answer: Code of ethics

Explanation:

The code of ethics is one of the principle in an organization that helps in guiding the various types of core values and the standards of the firm for making the various types of decisions.

The main purpose of the code of ethics is that it helps in providing the various types of ethical guideline to the members of a organization for providing the various types of core values. It is one of the type of document that helps in outline the main mission and also the core values of an organization.  

 According to the given question, the code of ethics is typically addressing the contribution to the various types of government officials, record the customers and the supplier relations accurately.

 Therefore, Code of ethics is the correct answer.            

3 0
3 years ago
Blackstone Technology is planning to invest in some project using external equity. The company has a beta of 1.1. The return on
Salsk061 [2.6K]

Answer:

Cost of equity = 19.1 %

Explanation:

Cost of equity = required rate of return + flotation cost

The Capital assets pricing model would be used to determined  the required rate of return

<em>The capital asset pricing model (CAPM): relates the price of a share to the market risk or systematic risk. The systematic risk is that which affects all the all the economic agents, e.g inflation, interest rate e.t.c  </em>

Using the CAPM , the required rate of return is given as follows:  

E(r)= Rf +β(Rm-Rf)  

E(r) - required return

β- Beta

Rm- Return on market

Rf- Risk-free rate

DATA

E(r) =? , Rf- 3%, Rm-14% , β- 1.1, flotation cost - 4%

E(r) = 3% + 1.1× (14% - 3%) = 15.1 %

Cost of equity = required rate of return + flotation cost

                        = 15.1 % + 4% = 19.1 %

Cost of equity = 19.1 %

7 0
3 years ago
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