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nevsk [136]
4 years ago
13

Suppose that a monopoly firm is required to pay a new annual license fee just for the privilege of doing business in its city an

d that the fee is somewhat less than the economic profit the firm is now earning. In response to the increase in fees, the firm will_______________.
Business
1 answer:
nlexa [21]4 years ago
6 0

Answer:

will not change it prices

Explanation:

Economic profit is the difference between the total income received and the total costs of inputs minus opportunity costs. Opportunity costs will include other implicit costs.

While accounting profit considers the general expenses in calculating profit and loss, economic profit takes into account opportunity costs together with the regular expenses.

If the licensee fee will not affect the economic profit, it implies that the firm profitability will remain the same. The accounting profit, which is what is usually reported in the income statement, will not be significantly affected. Therefore, the company will likely not change its prices.

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Suppose the government wants to reduce this type of unemployment. Which of the following policies would help achieve this goal?
zimovet [89]

Answer:  Offering recipients of unemployment insurance benefits a cash bonus if they find a new job within a specified number of weeks

Explanation:

The type of unemployment is not given but the above option is the only one that can reduce unemployment out of the options given.

People who recently lost their jobs and are on Unemployment insurance might find that their motivation to look for a job is not as strong as it should be because they are still receiving a paycheck at the end of the month. It will therefore most likely take them longer to find a job than necessary because they simply aren't looking hard enough.

If the Government stepped in and offered them a cash incentive to find a job quicker, this can have the effect of reducing unemployment by giving those people who were just mentioned renewed motivation to look for employment rather than just remain on Unemployment insurance.

3 0
4 years ago
Wilde Software Development has a 12% unlevered cost of equity. Wilde forecasts the following interest expenses, which are expect
raketka [301]

Answer: $400.56

Explanation:

Horizon value = Tax shield in 3rd year * (1 + growth rate) / (Required return - Growth rate)

Tax shield in year 3 = Interest expense * tax rate

= 140 * 25%

= $35

Horizon value = 35 * ( 1 + 3%) / (12% - 3%)

= $400.56

6 0
3 years ago
list different types (models) of diffusion and provided examples/illustrations of each in the real world.
DedPeter [7]

The different types of diffusions are

Expansion Diffusion

Contagious Diffusion.

Hierarchical Diffusion.

Stimulus Diffusion.

Expansion diffusion is while innovations unfold to new places even as staying sturdy in their original places. For instance, Islam has unfold at some point of the sector, but stayed sturdy in the center East, wherein it became based.

Expansion diffusion happens when the spreading phenomenon has a supply and diffuses outwards into new areas, an instance being a spreading wildfire. Relocation diffusion takes place while the spreading phenomenon migrates into new areas, leaving at the back of its beginning or source of the sickness.

Expansion Diffusion is the spread of a concept through a population wherein the amount of these influences grows continuously large. There are 3 sub-styles of growth diffusion: Stimulus, Hierarchical, and Contagious.

Learn more about Expansion diffusion here: brainly.com/question/7215000

#SPJ4

6 0
2 years ago
The source document for the data for debiting Work in Process for direct materials is aa. purchase orderb. materials requisition
JulsSmile [24]

Answer:

The correct answer is letter "B": materials requisition.

Explanation:

Materials requisition is a form to request materials needed in the production process. Typically, the production department fills out the request to be received by the inventory unit in the organization. The materials requisition form is also helpful to keep track of the materials being used which at the same time will allow charging the targeted job for the cost of the items requested.

As such, the materials requisition is part of the <em>Work in Progress</em> (WIP) account.

3 0
4 years ago
When a negative externality exists, external costs are necessarily greater than private costs.
const2013 [10]

Social costs are greater than private costs.

Option C

<u>Explanation: </u>

A negative externality happens if an individual or a company decides not to pay the full cost of the action. If a product has a negative externality, it costs society more than the customer spends.

If people have a share of the costs associated with the production of goods, negative externalities exist and have no influence over the associated production decisions.  

For example, because of expanded manufacturing practices in its vicinity, parents will have to pay higher healthcare costs associated with pollution-led asthma in their kids.

5 0
4 years ago
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