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andre [41]
3 years ago
6

When external benefits are present in a market?

Business
1 answer:
lara31 [8.8K]3 years ago
4 0
When external benefits are present in a market INEFFICIENCY MAY ARISE, BECAUSE POTENTIAL PRODUCERS ARE UNABLE TO CAPTURE FULLY THE BENEFITS THAT THEIR ACTION CREATE FOR OTHERS.  This may cause the producers to produce just a little of this product. 
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Suppose two cities are considering tearing down their stadiums to build new ones. In one city, the old stadium cost $5 million t
timofeeve [1]

Answer:

These are the options for the question:

A. They should be more willing to tear down the $5 million stadium, because it cost less to build.

B. They should be more willing to tear down the $50 million stadium, because it cost more to build.

C. The cost to build the old stadium shouldn’t be considered.

And this is the correct answer:

A. They should be more willing to tear down the $5 million stadium, because it cost less to build.

Explanation:

City A will likely be more willing to tear down its old stadium because it costed $5 million to build. City B, on the other hand, will have to think twice because a stadium that costed $50 billion to build could have more value than it seems, or the City could simply not have enough money to build a better new stadium (something that would probably cost more than $50 billion to do).

4 0
3 years ago
Read 2 more answers
"Diminishing marginal​ returns" refer to a situation in which the ______.A. average product of the last worker hired is less tha
galben [10]

Answer: C. marginal product of the last worker hired is less than the marginal product of the previous worker hired

This statement is correct because marginal product refers to the increase in the production, when 1 worker is added to the production process. Diminishing marginal returns set in when adding one extra worker increases the production less than the previous worker did.

Explanation:

5 0
3 years ago
Is ordering a pizza for someone else illegal?
Over [174]
No, its not illegal to order a pizza for someone else
4 0
3 years ago
Peng Company is considering buying a machine that will yield income of $2,100 and net cash flow of $19,500 per year for three ye
irina [24]

The accounting rate of return for this investment given its income, cost of the machine and the salvage value is 8.05%.

<h3>What is the accounting rate of return?</h3>

The accounting rate of return is a capital budgeting method used to determine the level of profitabiliy of an investement.

Accounting rate of return = Average net income / Average book value

Average book value = (cost of equipment - salvage value) / 2

Average book value = (59700 - 7500) / 2 = $21,600

Accounting rate of return = $2100 / 21600 = 8.05%

To learn more about Accounting rate of return, please check: brainly.com/question/13034173

#SPJ1

3 0
2 years ago
George gets paid on fridays for a week's work, mai ling gets paid for every five wedding veils she sews and completes. george is
asambeis [7]

Answer:

George is on a<u> fixed interval</u>

Mai Ling is on a <u>fixed ratio</u>

Explanation:

A schedule is the delivery rate or frequency of a booster.

A fixed interval refers to the amount of time the reinforcement delivery rate has occurred over a predictable period of time, such as George, who is paid weekly for his work.

A fixed ratio occurs when rewards are delivered on a consistent schedule basis. As in the case of Mai Ling who gets paid after certain completed tasks, which corresponds to the number of tasks she performs to receive certain reinforcement.

6 0
3 years ago
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