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Naya [18.7K]
3 years ago
9

This chapter analyzed the welfare effects of a tax on a good. Now consider the opposite policy. Suppose that the government subs

idizes a good: For each unit of the good sold, the government pays $2 to the buyer. How does the subsidy affect consumer surplus, producer surplus, tax revenue, and total surplus?
Business
1 answer:
GREYUIT [131]3 years ago
8 0

With the subsidy offered by the government, the consumer surplus will increase because they will demand more, the tax revenue will reduce and not increase, the producer surplus will not be affected much because the price that the producers receive will remain the same.

<u>Explanation:</u>

A subsidy or government incentive is a type of budgetary guide or bolster reached out to a monetary segment by and large with the point of advancing financial and social arrangement. Albeit usually stretched out from government, the term appropriation can identify with a help – for instance from NGOs or as certain endowments.

A subsidy is a payment made to people, organizations, different governments, and other residential foundations and associations. The motivation behind government sponsorship is to guarantee the accessibility of fundamental merchandise and enterprises.

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Beranek Corp has $695,000 of assets (which equal total invested capital), and it uses no debt - it is financed only with common
lesya692 [45]

Answer:

$278,000

Explanation:

Data provided:

Total invested capital or assets = $695,000

Total debt to total capital ratio = 40%

now,

\frac{\textup{Total debt}}{\textup{Total capital}} = \frac{\textup{40}}{\textup{100}}

or

Total debt = 0.4 × Total capital

or

Total debt = 0.4 × $695,000

or

Total debt = $278,000

Hence,

The firm must borrow $278,000 to achieve the desired ratio

3 0
3 years ago
Which of the following is NOT a necessary condition for oligopoly? differentiated products barriers to entry strategic dependenc
stepladder [879]

Answer:

differentiated products.

Explanation:

An oligopoly occurs when a few large firms dominate a market and they aim to maximise profit. The action of one firm has significant effect on the market, so the firm's are interdependent.

There are high barriers to entry including use of government liscences, patents, economies of scale, and actions taken by firms to discourage entry into the market.

However differentiation of products is not a necessary condition for oligopoly. Products can be homogenous or differentiated.

8 0
3 years ago
Fred is the purchasing manager at Marc's Auto Body and places orders for routine products such as office supplies and items need
prohojiy [21]

Answer:

A) ​Straight rebuy

Explanation:

Based on the information provided within the question it can be said that the purchasing process that Fred is using is called a Straight Rebuy. In a business context, this term refers to ordering supplies for the first time or as a reorder from a supplier from an approved list . This list contains suppliers that have been approved due to ease of use, good quality products, or low prices. Which in this case Grainger has all of these traits, which is why Fred prefers them.

8 0
3 years ago
Chapter 44 discusses the "executive" and the "independent" administrative agencies. The primary distinction between the two type
MrMuchimi

Answers:

It won't be advisable to transform this executive agencies to independent agencies, because it will reduce the power of the president, and therefore reducing the ability of the president to carry on it's agenda.

ADVANTAGE OF THE TRANSFORMATION:

1) Their will discharge their duties without any political influence.

2) The president will not longer have strong influence on their decision.

3) Each head of the agency will have a specific time and duration for it plans to be achieved before the end of it's tenure.

DISADVANTAGE OF THE TRANSACTION:

1) It will develop fight for power and control in the decisions of the agency, between the president and the head of the agency.

2) it will take away harmony been seen between the president office and the agency.

3) it will reduce the power been invested in the president in carrying on a better administration.

Executive heads owe allegiance to the president, because their are appointed by the president, and can only be removed by the president. During appointment, the president usually appoints it's loyalist that is qualified to head the agency. This is why some of their heads resign, when their can no longer cope with the will of the president.

8 0
3 years ago
MyPillow uses television advertising and wanted to see whether the TV ads reached more viewers during the daytime spots or the p
Anit [1.1K]

Answer:

c

Explanation:

If MyPillow wants to get real time update, it means it wants to get update as people are watching tv. In order to reach its audience, it would be right to reach them on the medium they use while watching tv. If most people do not use their desktop computers while watching TV , it would not be appropriate to use desktop computers.

But if people watch tv and use their phone, the appropriate means of carrying this research is through mobile.

5 0
3 years ago
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