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inna [77]
3 years ago
15

In each of the following situations, identify if there is a positive or negative externality in play. Explain you answer thoroug

hly.
A local bridal shop shares a strip mall with eight other businesses. Recently all have agreed that the signage at the road needs a facelift. Although all eight businesses use the sign, the other seven are not willing to pay for a fresh paint job. The bridal shop decides to foot the bill and, on their own, they update the sign. Is there a positive or negative externality in play? Why?
A local church holds a "4th of July Celebration" and invites everyone in their area to come enjoy free bounce-houses, live music and snow cones..
A local high school decides to expand their bus ramp to help buses get in and out of the school more quickly. The construction process takes two months and creates serious traffic issues for the commuters in that area of town.
Business
1 answer:
Vitek1552 [10]3 years ago
7 0

Answer:

1. Positive Externality ; 2. Negative Externality ; 3. Positive Externality.

Explanation:

Externalities are benefits or harms to other parties , without payment received or made for them respectively.

Positive Externalities : Externalities positively effecting others. Eg-Education

Negative Externalities : Externalities positively effecting others . Eg-Pollution.

1. Bridal Shop's signage facelift creates benefit for other strip mall businesses also (better business visibility), without former receiving money & latter paying money.

2. Local church celebration creates benefit for all attendants (recreational benefit) ,without former receiving money & latter paying money.

3. Local School bus ramp construction creates harm for commuters of that area (traffic inconvenience) , without former paying money & latter receiving money

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A company's flexible budget for the range of 35,000 units to 45,000 units of production showed variable overhead costs of $2 per
Ipatiy [6.2K]

Answer:

$3200 favorable

Explanation:

We have given range of number of production = 40000 units

So average of number of units =\frac{35000+45000}{2}=40000

Variable cost = $2 per unit

So total variable cost = 40000×$2 = $80000

Fixed overhead = $72000

Budgeted overhead for actual production = Variable overhead +Fixed overhead  = $80000+$72000 = $152000

Actual total overhead cost = $148,800

Total overhead controllable cost variance = Budgeted overhead - Actual overhead

= $152,000 - $148,800 = $3,200 favorable.

6 0
3 years ago
The Classical Theory is based on the assumption that an economy has ______________ or, if nudged away, quickly returns to that c
Neporo4naja [7]

Answer:

c. full employment

Explanation:

The classical theory refers to a theory in which there is an existence of the full employment. The unemployment would be arise by including the legislation of the trade union and the legislation of the minimum wages in the market system i.e. free based.

Therefore according to the given situation, the option c is the correct and the same is to be considered

5 0
3 years ago
Lusk company produces and sells 15,900 units of product a each month. the selling price of product a is $29 per unit, and variab
Shkiper50 [21]
<span>Decrease by $57,400 per month. Looks look at the cash flow for continuing to produce product a and discontinuing product a. Continuing to produce Income = 15900 * $29 = $461,100 Variable Expenses = 15900 * 23 = $365,700 Fixed overhead = $109,000 Total cash flow = $461,100 - $365,700 - $109,000 = -$13,600 So the Lusk company is losing $13,600 per month while producing product a. Let's see what happens if they stop producing it. Income = $0 Variable Expenses = $0 Fixed overhead = $71,000 Total cash flow = $0 - $71,000 = -$71,000 So if they stop producing it, their fixed overhead decreases, but is still at $71,000 per month, for a total loss per month of $71,000. The conclusion is to either lose $13,600 per month, or $71,000 per month. So if they stop production of product a, their loss per month will increase by $57,400.</span>
6 0
3 years ago
Ballard Company incurred a total cost of $8,500 to produce 400 units of pulp. Each unit of pulp required six (6) direct labor ho
Strike441 [17]

Answer:

$4,900

Explanation:

Given that,

Total cost at a production level of 400 units = $8,500

Each unit of pulp requires = 6 direct labor hours

Variable cost = $1.50 per direct labor hour

Total variable cost:

= Cost per direct labor hour × Direct labor hours required for each unit × No. of units produced

= $1.50 × 6 × 400

= $3,600

Total cost is sum total of total fixed cost and total variable cost.

Total cost = Total fixed cost + Total variable cost

$8,500 = Total fixed cost + $3,600

$8,500 - $3,600 = Total fixed cost

$4,900 = Total fixed cost

5 0
3 years ago
Jimmy, the marketing manager for an automobile manufacturer, observes frequent conflicts between two of his subordinates, Trent
Alina [70]

it is the person analysis

reason-

a person analysis is the analysis in whch we study the behaviour of the employees it helps us to identify the employees who lacks skills or need training.
8 0
3 years ago
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