Answer:
d. prevents the economy from producing its potential level of real GDP.
Explanation:
Price-stickiness or Wage-stickiness, is a term that describes a condition in which a nominal price or wage is resistant to change. Often referred to as Nominal Rigidity, this occurs when a price or wage is fixed in nominal terms for a given period of time.
In other words, Price stickiness or Wage Stickiness occurs when workers' earnings or price don't adjust quickly to changes in labor market conditions, thereby creating sustained periods of shortage or surplus.
Hence, Price and Wage stickiness prevent the economy from achieving its natural level of employment and its potential output, which in turn prevents the economy from producing its potential level of real GDP.
B - The quantity of milk supplied will decrease
<span>A business becoming incorporated is an example of risk management.</span>
When a business becomes incorporated it is trying to protect the assets of the company. By assessing and making a risk management decision to become incorporated they are protecting themselves and the company as a whole.
Answer:
The payback period for Silva Inc. is 3 years. If considering only this method of evaluating projects, Silva Inc will invest in project A and dismiss project B.
Payback period A=2,1539 years.
Payback period B= 3,0042 years
Explanation:
The payback period refers to the amount of time it takes to recover the cost of an investment. The payback period is the length of time an investment reaches a breakeven point.
<u>Cash Flow A:</u>
$
I0= - 70.000
1= 28000 = -42000
2= 38000 = -4000
3= 26000 = 22000
Payback period= full years until recovery +
unrecovered cost beginning year/Cashflow during year
Payback period A= 2 + (4000/26000)= 2,1539 years.
<u>Cash Flow B:</u>
$
I0= -80000
1= 20000 = -60000
2= 23000 = -37000
3= 36000 = -1000
4= 240000 = 239000
Payback period B= 3 + 1000/240000= 3,0042 years
<u>The payback period for Silva Inc. is 3 years. If considering only this method of evaluating projects, Silva Inc will invest in project A and dismiss project B. </u>
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Answer:
c. there is a negative externality.
Explanation:
At the time when one individual actions develops the benefits for others but at the same time they dont pay so it is to be known as positive externality
At the time when one individual action develops loss but the other who received the loss because of the action of the person so for this they didnt get the compensation so it is the negative externality
As we can see that there is three types of values so the correct option is c.
