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VARVARA [1.3K]
3 years ago
12

In a market with positive​ externalities, A. the efficient level of production is less than what competition will obtain. B. the

efficient level of production is equal to what competition will obtain. C. there cannot be an efficient level of production. D. the efficient level of production is more than what competition will obtain.
Business
1 answer:
Jlenok [28]3 years ago
7 0

Answer:

A. the efficient level of production is less than what competition will obtain. B. the efficient level of produ

Explanation:

An activity has a positive externality if if the benefit of the activity exceeds the cost of the activity to third parties.

Education and research and development usually generate positive externality.

Activities that generate positive externality are usually under produced in the economy due to the high cost of production.

The government can encourage production of activity that generates positive externality by giving subsidy.

I hope my answer helps you

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Sonic Inc. manufactures two models of speakers, Rumble and Thunder. Based on the following production and sales data for June, p
Sonbull [250]

Answer:

Sonic Inc.

a) Sales Budget:

                                      Rumble            Thunder

Total units sold              8,550                7,450

Unit sales price               $135                  $210

Sales value            $1,154,250       $1,564,500

b) Production Budget:

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Total units sold                                    8,550          7,450

Desired inventory (units), June 30       299               56

Estimated inventory (units), June 1       260               64

Units to be produced                         8,589           7,442

Explanation:

a) Data and Calculations:

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Total units sold                                    8,550          7,450

Desired inventory (units), June 30       299               56

Estimated inventory (units), June 1       260               64

Units Produced                                   8,589           7,442

                                              Rumble      Thunder

Expected sales volume (units):

Midwest Region                     3,650          3,200  

South Region                         4,900          4,250

Total units sold                      8,550          7,450

Unit sales price                       $135            $210

a) The Sonic Inc.'s sales budget determines the production budget.  When the quantity to be sold is obtained, then production planning can take place based on meeting customers' demand for goods or services.

b) The Production budget is a bye-product of the sales budget, though, it is critical in the whole value chain.  It is the production budget that guides production planning, including the type, design, and other features of the product.

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