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larisa [96]
3 years ago
8

A government subsidy does not: - increase market efficiency. - affect both producers and consumers in the market. - cause a diff

erence between the price received by sellers and the price paid by buyers. - cause a deadweight loss in the market.
Business
1 answer:
aalyn [17]3 years ago
5 0

Answer:

<u>affect both producers and consumers in the market.</u>

Explanation:

  • A subsidy is a type of government initiative in the form of financial aid or support with the aim of promoting the economic and the social policy of the country.
  • They are in various forms like the tax rebated and insurances and lower interest loans etc. Thus affecting both the producers and the consumers as they commonly reduce the prices of goods and services for the consumers.
  • Production subsidy, export subsidy import subsidy, consumption subsidy, and the employment subsidy are done to produce more growth and opportunities in the market.
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The sales manager is convinced that a 11% reduction in the selling price, combined with a $65,000 increase in advertising, would
Zarrin [17]

Answer:

net income increase of 11.25%

Explanation:

If the price p is reduced a 11% means that new price will be p(1-0.11)

New price = 0.89p

The new quantities demandes will increase a 25%, this means that the new quantities will be Q*(1+.025) = 1.25Q

So, the net income under this new circunstances will be

1.25 Q * 0.89P = 1.1125 P*Q

This means a net income increase of 11.25%

8 0
3 years ago
Abby purchased 100 shares of her dad’s favorite stock for $25.80 per share exactly 1 year ago, commission free. She sold it toda
Zina [86]

Answer:

2865.09

Explanation:

V0 = #Shares * Price per Share

V0 = 100 * 25.8 = 2580

V1 = Today´s Value

V1 = 2865

Return Year 1 = (V1 - V0) / V0

Return Year 1 = (2865 - 2580)/2580

Return Year 1 = 11.05%

New Investment

Abby's desire is to get the same return of 11.05%. So for the next year her investment should be 2580 * (1 + return) --> 2580 * (1 + 0.1105) = 2865.09.

Remember that we are assuming that the 50 are part of the purchase price and we are assuming that she did not add any money.

8 0
3 years ago
Austin is not able to pay the entire balance due by the due date of the return (without extensions) . what are his options?
Aleks [24]

If Austin cannot pay the entire balance in full by the due date of the return, he can choose any options. Such as installment agreement request by submitting form 9465. This installment agreement allows Austin to make a series of monthly payments over time. Another choice is by paying IRS for a full pay agreement of up to 120 days. In this option, no penalty fee for full payment; however, interest and any applicable penalties continue to accrue until your liability is paid in full. Moreover, Austin can <span>consider financing the full payment of his tax liability through a credit card. The interest rate and any applicable fees charged by a credit card company are usually lower than the combination of interest and penalties set by the Internal Revenue Code.</span>

8 0
4 years ago
Consider the market for economic textbooks. Explain whether the following event would cause an increase or decrease in supply or
saw5 [17]

Answer:

A. Decrease in supply

B. Increase in quantity supplied.

C. Increase in supply

D. Decrease in supply

Explanation:

If the price of paper increases, the cost of production increases and supply falls.

If the price of economics textbooks increases, the quantity supplied increases in line with the law of supply.

If the number of publishers increase, the supply would increase.

If there are expectations that prices would rise in the future, suppliers would decrease supply now and increase it in the future in order to earn a higher revenue.

I hope my answer helps you

6 0
3 years ago
A firm sells a product in a perfectly competitive market. The marginal cost of the product at the current output level of 1,000
Sergio039 [100]

Answer:

The correct answer is "Continue producing 1000 units"

Explanation:

(In a perfect market)

When the price is = marginal cost. This means that if you increase your production, the benefits-profits will be the same as if you produce the same quantity.

When the Price > Marginal cost, means that consumers demand more for that good, so the producer has an incentive to increase the supply

When the Price < Marginal cost, means that production is higher than the consumer's demand.  This is an incentive to decrease the supply.

For this case, the best option is to continue producing the same quantity of units, 1000 units

8 0
3 years ago
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