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frez [133]
3 years ago
8

If no externalities exist in a particular industry, what happens to the market equilibrium?

Business
1 answer:
Evgen [1.6K]3 years ago
3 0

Answer:

Market equilibrium does reaches Pareto optimality.

Explanation:

If there are no externalities, then we don't have market failure or competitive market equilibrium reaches Pareto optimum. This is a situation, where it is not possible to make things better for someone without making it worse for someone else.

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On July 1, Goblette Company sold some machinery to another company. The two companies entered into an installment sales contract
malfutka [58]

Answer:

The value of all future payments discounted by the interest rate

Explanation:

Since the purchase of the asset is by installments to be paid in the future. The present value to be recognized is the sum of the future payments discounted at the predetermined interest rate.

The first payment due now will not have to be discounted but future payments will have to be discounted to ascertain the present value of the asset to be recognized in the balance sheet.

7 0
3 years ago
Read 2 more answers
What does it mean to “diversify” your portfolio?
Darya [45]

Answer:

C. Spreading risk by investing your money in a variety of funds and investment options.

Explanation:

To “diversify” a portfolio is to invest in a variety of assets as opposed to focusing on one type of asset. To diversify is to invest in different classes of assets to minimize the risks associated with investing.

Diversification minimizes risk by spreading it in the different classes of assets. Should returns from one class of assets be unfavorable, the losses incurred will be neutralized by positive returns from the other assets.

8 0
3 years ago
A company earned net income of $ 80 comma 000 during the year ended December​ 31, 2016. On December​ 15, the company declared th
saw5 [17]

Answer:

Retained Earnings increased $28,650 in 2016.

Explanation:

The total increase in Retained Earnings account = Net income = $80,000;

The total decrease in Retained Earnings account = Dividend paid to common shares + Dividend paid to preferred shares = Dividend per common share x Number of common share outstanding + % dividend on preferred stock x par value of preferred stock x number of preferred stock outstanding = 0.75 x 65,000 + 2% x (130,000 / 13,000) x 13,000 = $51,350;

So, Net effect on Retained Earnings Account =  $80,000 - $51,350 = $28,650 ( increase).

5 0
4 years ago
Use the following information to answer questions 10 – 14. Suppose South Korea can produce 100 computer chips with 12 hours of l
Andrew [12]

Answer:

100 bed linens

Explanation:

Opportunity costs of South Korea:

  • Computer chips = 100 chips / 12 hours of labor = 8.33 computer chips per hour of labor.
  • Bed linens = 50 chips / 6 hours of labor = 8.33 bed linens per hour of labor.

Since both products require the same amount of labor hours (8.33 labor hours per unit), then the opportunity cost of producing 100 computer chips is 100 bed linens.

Opportunity costs are the extra costs or benefits lost from choosing one activity or investment over another alternative.

7 0
3 years ago
A firm'sprofit margin when ignoring the effects of financing is 20% with an EBIT of $1.5 million and sales of $5 million. How mu
nordsb [41]

Answer:

The firm paid taxes of $0.5 million

Explanation:

Profit margin is the percentage of net income to its sales. It is calculated as follow:

Profit Margin =  ( Net profit /  Sales ) x 100

20% = (Net profit / 5 million) x 100

(20/100) x 5 million = Net profit

Net profit = 1 million

EBIT is the earning before the payment of interest expense and tax. It is the net of Gross profit and operating expenses.

net income is calculates from EBIT as follow

Net Income = EBIT - Interest expense - Tax

1 = 1.5 - $0 - Tax (ignoring the effect of financing)

Tax = $1.5 - $1

Tax = $0.5 million

5 0
3 years ago
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