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maw [93]
3 years ago
13

When a negative externality exists, the private market produces?

Business
1 answer:
mart [117]3 years ago
4 0
The private market will produce more than the economically efficient output level. Also when there is a negative externality then the cost to producers will be less than the cost to society. Remember that a negative externality is a cost that is suffered by a third party as a result of an economic transaction. Also have in mins that externalities lead to market failure<span> because the price equilibrium </span>does<span> not reflect the true costs and benefits of a product.</span>
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Enchante Inc., a designer clothing company buys $400 worth of silk from a silk trader, and $30 worth of accessories from Accesso
makvit [3.9K]

Answer:

d $630

Explanation:

Value added approach is a strategy for pricing a product which consider all the costs incurred and and all other factors which can effect the price of the product like how customer sees this product and how much he/she is willing to pay for this product etc.

Price of Designer dress = All cost incurred + Value added to the product

Price of Designer dress = ( 400 + 30 ) + 200 = $630

3 0
2 years ago
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If the minimum attractive rate of return is 7%, which alternative should be chosen assuming identical replacement (like kind exc
ira [324]

Answer:

The alternative that should be chosen assuming identical replacement is:

Alternative B.

Explanation:

a) Data and Calculations:

Alternatives:

                                                A            B

First Cost                           $5,000     $9,200

Uniform Annual Benefit     $1,750      $1,850

Useful life, in years                4              8

Rate of return                       7%            7%

Annuity factor                   3.387          5.971

Present value of annuity $5,927.25 $11,046.35

Net cash flow                 $927.25     $1,846.35

b) Alternative B yields a higher return than Alternative A.  Since the two alternatives are based on the same rate of return, Alternative B will bring in a higher annual benefit, even when discounted to the present value.

7 0
2 years ago
A revenue tariff is designed to assist more efficient domestic producers, whereas a protective tariff is designed to promote imp
bezimeni [28]

Answer:

False

Explanation:

Revenue tariff means increasing earnings. It will raise government revenue instead of protecting domestic ventures. It is a direct income in the form of tax to obtain from corporate revenues.

On the other hand, protective tariffs are designed to protect domestic producers. It protects local manufacturers by imposing a heavy duty on imported products, which enables the products to become less attractive. Therefore, the aim is to reduce imports.

6 0
3 years ago
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Which work value is most likely to be important in a person's career choice?
matrenka [14]

Answer:

oD. being skilled at negotiating and bargaining with people

6 0
2 years ago
The U.S. Supreme Court case United States v. Bagley compels the prosecution to disclose any evidence that the _________ requests
nikdorinn [45]

Hello,

Question - The U.S. Supreme Court case United States v. Bagley compels the prosecution to disclose any evidence that the _________ requests.

Answer - "evidence that the defense requests"

Why - "Bagley claimed that the government had violated his due process rights by withholding evidence that the defense could have utilized to impeach the witnesses. The district court held that the evidence was not material because the outcome would have been the same. "


6 0
3 years ago
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