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ICE Princess25 [194]
3 years ago
12

Suppose that Mick and Cher are the only two members of society and are willing to pay $10 and $8, respectively, for the third un

it of a public good. Also, assume that the marginal cost of the third unit is $17. We can conclude that______ a) zero units should be produced. b) the third unit should be produced. c) the third unit should not be produced. d) 4 units should be produced.
Business
1 answer:
Tasya [4]3 years ago
5 0

Answer:

b) The third unit should be produced

Explanation:

Consumer surplus arises wherein the price consumer actually pays is lesser than the price consumer was willing to pay.

Marginal cost refers to the additional cost incurred when an extra unit is produced.

Marginal revenue refers to the addition to total revenue when an additional unit of a good is produced.

As per marginal analysis, a producer would continue producing till the point wherein the marginal cost of production is equal to the marginal revenue derived.

In the given case, the two members are willing to pay $10 and $8 for the third unit of public good. The marginal cost for third unit being $17. While the marginal revenue derived being $18 ($10 + $8)

Since, the marginal revenue derived would be greater than marginal cost, the third unit should be produced.

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6 0
3 years ago
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The owner of Grandma's Applesauce is planning to retire after the coming year. She has to repay a loan of $50,000 plus 8 percent
Aleks04 [339]

Answer:

Option (B) $5,000

Explanation:

Data provided in the question:

Repayment of Loan = $50,000

Interest = 8%

Cash flow             Probability

$65,000                    70%

$45,000                    30%

Tax rate = 0%

Now,

Interest on loan = 8% of $50,000

= $4,000

Expected value of cash flow = ∑[cash flow × Probability ]

= ( 0.7 × $65,000 ) + ( 0.3 × $45,000 )

= $45,500 + $13,500

= $59,000

The owner's expected cash flow after debt service

= Expected value of cash flow - Interest on loan - Repayment of Loan

= $59,000 - $4,000 - $50,000

= $5,000

Hence,

Option (B) $5,000

3 0
3 years ago
scott is the chief human resource officer (CHRO) of MarkIt Inc.. In performing the tasks of aligning the HR activities with the
Crank

Answer:

leader of the HR function

Explanation:

HRM stands for Human Resource Management. It is a department in any business organization which looks after hiring, training and managing the employees of the organization.

It also deals with the issues of the employees that they face in the organization.

In the context, Scott who is the CHRO, i.e. the chief human resource officer of the organization named Marklt Inc. performs the tasks of the management and alignment of all the HR activities that is with the need of the business. In such a way, Scott is performing the role of the leader of the HR function.  

As a leader of the HR, Scott is ensuring that Marklt Inc. has the right people in the organization working to their best.

5 0
3 years ago
Which of the following is a tertiary ratio that drives protability?
Snezhnost [94]

Answer:

Explanation:

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4 0
3 years ago
What were joint-stock companies and monopoly companies, and how did they contribute to increased trade and exploration?
Irina-Kira [14]

Answer:

Nowadays, a joint stock company is simply a corporation whose stockholders can buy or sell the company's stocks. But 4 centuries ago, joint stock companies were very different.

Joint stock companies were used by the British Empire to set colonies around the world, e.g. the Virginia Company was chartered rights to establish and exploit colonies in British territories, which are now the US.

A joint stock company was named that way because stocks of the company were sold to rich people in England that were willing to risk money in the colonies. E.g. Jameston was founded and basically owned by the Virginia Company. Joint stock companies were vital for the colonization processes of the British Empire.

The King of England could also establish chartered companies which basically had a monopoly over the trade of certain areas, e.g. the East India Company was probably one of the most famous of them and the most powerful and wealthy.

Some chartered companies were even responsible for paying the salaries and expenses of the British government officials in foreign countries. The East India Company basically ruled over all India and had its own private army.

5 0
4 years ago
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