A situation known as a "market failure" occurs when the market itself is unable to efficiently distribute resources in a way that balances social costs and benefits.
Market failure refers to a situation where there is an inefficient allocation of products and services on the open market. The individual incentives for rational behavior do not result in rational outcomes for the collective in a market failure.
In other words, each person chooses what is best for themselves, but those choices end up being bad for the collective. This can occasionally be demonstrated in conventional microeconomics as a steady-state disequilibrium condition.
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Answer:
17.4%
Explanation:
Calculation for Dowling's 2021 profit margin
Using this formula
Profit Margin = Net Income/ Net Sales
Let plug in the formula
Profit Margin=$20/$115
Profit Margin= 0.1739 ×100
Profit Margin= 17.4%
Therefore Dowling's 2021 profit margin will be 17.4%
Answer:
The lease should be classified as a Finance or Capital Lease.
Explanation:
For Sans Serif to recognize a lease arrangement as a Capital Lease, the lease term will take up a significant part of the asset’s useful economic life, among other conditions. In this case, the economic life of the asset is six years, and the lease term lasts six years. This lease cannot be classified as an operating lease, with the lease payments treated as an expense instead of as a repayment of a liability for a recognized asset.