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attashe74 [19]
2 years ago
7

The challenge of cost-benefit analysis and the tragedy of the commons are two problems associated with which type of good?

Business
1 answer:
Mashutka [201]2 years ago
3 0

Answer:

Nonexcludable  goods

Explanation:

The cost-benefit analysis, in microeconomics, public economics and industrial economics, generically indicates the set of techniques for evaluating investment projects based on the measurement and comparison of all costs and benefits directly and indirectly connected to them. The analysis is generally conducted by reporting each input unit in elementary cost units and each output unit in elementary benefit units. Each of these units is then attempted to give the most objective value possible, thus making it measurable and comparable. The total cost, therefore, is the sum of the values ​​of the individual units of elementary costs, while the total benefit is, similarly, the sum of the values ​​of the individual units of elementary benefits. It is possible, with this system, to evaluate direct and indirect benefits and costs. In order to have reliable results, it is important to limit the units of elementary benefits and costs as realistic as possible and to evaluate these units using prices that are as objective as possible. The challenge is about how the individuals uses inappropriately the goods. The problem is the state or control mechanisms can not always forbid to free using of goods. This is free riding problem or common pool resources. If the common resources is considered, the analysis will have a challange.Common-pool resources - goods that are characterized by the inability to exclude users and the competitive nature of consumption. The first condition means that the good supplier cannot prevent others from using the good. The second condition means that the consumption of a good by an individual deprives others of the use of the good's qualities to expand their own benefits. Common pool goods are characterized by the fact that if they are used excessively, the good is able to lose its value or be completely degraded.

In economics, common pool goods are a kind of goods consisting of natural or man-made system resources (e.g. irrigation or fishing grounds) whose size or specificity makes them expensive, but not impossible to exclude potential beneficiaries from obtaining benefits from their using. Unlike pure public goods, the goods in the common pool are struggling with overload problems or their abuse because they are publicly available. Common pool goods usually consist of a resource core (e.g., water or fish), which defines a time variable, while providing a limited amount of extraction of secondary units, which are referred to as variable flow.

Examples of common pool goods include irrigation systems, fisheries, pastures, forests, water and atmosphere. Pasture, for example, allows a certain amount of grazing. However, in the event of excessive grazing, pasture may become more susceptible to erosion and ultimately bring fewer benefits to its users. These types of goods also include traffic routes such as streets. As long as there are few vehicles, everyone is moving smoothly, but when there are too many, traffic jams form and everyone goes slower.

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Cork Inc. declared a $160,000 cash dividend. It currently has 6,000 shares of 7%, $100 par value cumulative preferred stock outs
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Answer:

$124,000 is the correct answer if we use 6% which is the correct question scenario. If we take 7% then its

Explanation:

The cash dividend announced is $160,000. Remember the first payment goes to preferred shareholders and then the amount left would be distributed among the ordinary shareholders.

The dividend share of Preferred shareholders = 6000 shares * $100 par value * 6% fixed rate = $36,000

After deducting this amount from the dividend announce will go to ordinary shareholders and is calculated as under:

Share of Dividend of ordinary shareholders = $160,000 - $36,000

= $124,000

Similarly if we use 7% fixed rate, then

The dividend share of Preferred shareholders = 6000 shares * $100 par value * 7% fixed rate = $42,000

After deducting this amount from the dividend announce will go to ordinary shareholders and is calculated as under:

Share of Dividend of ordinary shareholders = $160,000 - $42,000

= $124,000

5 0
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Is this counted in the GDP of a country ?The services of a mechanic in fixing the radiator on his own car.
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Answer:

Yes this could be counted as GDP

Explanation:

6 0
2 years ago
When the price of hot dogs decreases, what happens in the market for the complementary good of hot dog buns?.
NikAS [45]
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Gentleman Gym just paid its annual dividend of $3 per share, and it is widely expected that the dividend will increase by 5% per
Roman55 [17]

Answer and Explanation:

The computation of the price that should be sell is shown below:

As we know that

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a. The price is

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= $31.50

b. Now the price is

= $3 × 1.05 ÷ (12% - 5%)

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6 0
2 years ago
Loban Company purchased four cars for $9,000 each and expects that they will be sold in 3 years for $1,500 each. The company use
VLD [36.1K]

Answer:

a). The journal entries required to record the acquisition of the four cars are as follows:

     i)  credit motor vehicle account with the amount paid to purchase the four cars = $ 36,000

     ii) Credit bank  account with the the amount paid to purchase the four cars = $ 36,000

b). The journal entries required to record the 1st year's depreciation expense :

     i)  Debit the motor vehicle expense account with the amount accruing for the periods expense =$ 10,000 .

     ii) Credit the accumulated depreciation with the same amount = $ 10,000 .

b)   The journal entries required to record the gain on disposal of the motor vehicle is as follows:

    i) Debit the Cash account by amount gained = $ 500 .

    ii) Debit the Accumulated depreciation account by amount = $ 500 .

     iii) Credit the Motor vehicle account by amount = $ 500 .

     iv) Credit the Gain on disposal account by amount = $ 500 .

Explanation:

<u>a).  Determining the depreciation expense</u>

<u>Step 1 </u>

Get the purchase price for all the four cars using the expression below;

Total purchase price=purchase price per car×number of cars purchased

where;

purchase price per car=$9,000

number of cars purchased=4

replacing;

Total purchase price=(9,000×4)=36,000

Total purchase price=$36,000

<u>Step 2 </u>

Determine the salvage value after the useful life as shown;

Salvage value=selling price per car×number of cars

where;

selling price per car=$1,500

number of cars=4

replacing;

Salvage value=(1,500×4)=6,000

Salvage value=$6,000

<u>Step 3 </u>

Determine the depreciation base as shown;

depreciation base=total purchase price-salvage value

where;

total purchase price=$36,000

salvage value=$6,000

replacing;

depreciation base=(36,000-6,000)=$30,000

annual depreciation cost=depreciation base/useful life

annual depreciation cost=30,000/3

annual depreciation cost=$10,000

The first year's depreciation expense=$10,000  

Therefore, expected journal entries are as follows:

    i)  credit motor vehicle account with the amount paid to purchase the four cars = $ 36,000

     ii) Credit bank  account with the the amount paid to purchase the four cars = $ 36,000

b). The journal entries required to record the 1st year's depreciation expense :

     i)  Debit the motor vehicle expense account with the amount accruing for the periods expense =$ 10,000 .

     ii) Credit the accumulated depreciation with the same amount = $ 10,000 .

b)<u>.  Determining whether car was sold at a loss or gain.</u>

Car book Value = Acquisition cost - Accumulated depreciation

Car book Value = 9,000 - 2,500 = $ 6,500

Loss /Gain =  Consideration price( disposal price)  - Acquisition cost

Loss /Gain = $7,000 - $6,500 = $ 500

The company realized a gain of = $ 500

Therefore, expected journal entries are as follows:

i) Debit the Cash account by amount gained = $ 500 .

ii) Debit the Accumulated depreciation account by amount = $ 500 .

iii) Credit the Motor vehicle account by amount = $ 500 .

iv) Credit the Gain on disposal account by amount = $ 500 .

7 0
3 years ago
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