Most people criticize monopolies for charging excessive prices, but economists disagree because monopolies do not produce enough goods and services to be allocatively efficient.
What is Allocative efficiency?
Efficiency, whether allocational or allocative, is the quality of a market where all products and services are efficiently divided among consumers in an economy. It happens when parties can use the precise and easily accessible information reflected in the market to decide how to employ their resources.
Why is a monopoly allocatively inefficient?
Companies with monopoly power can set prices higher than in a market with competitors. Because in monopolies the price is higher than MC, an unregulated monopoly provider is very likely to be allocatively inefficient. In a market where there is competition, prices would be reduced and more people would benefit from buying the product.
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1.) student loans due to the fact that they are more secure than credit card debt and maybe have long periods before they have to be paid off.
2.) chad has a maximum amount of money he can use before it has to be paid back. Unfortunately chads maximum was so low he couldn’t even buy popcorn, or he already maxed out his card.
Answer:
$144,592
Explanation:
The computation of the after tax salvage value is shown below;
We assume that after 2 years, 52% of the equipment cost would be written off so the remaining basis i.e.
= $319,000 × 48%
= $153,120
The tax loss is
= $153,120 - $140,000
= $13,120
ANd, the tax rate is 35%
So,
= $13,120 × 0.35
= $4,592
Now the after tax salvage value is
= $140,000 + $4,592
= $144,592
No, it depends on the company.
The demand of the buyers on products are supplied by the market.
