All categories

4 years ago

What are the sources of externalities and market failure?

Business

1 answer:

Olenka [21]4 years ago

4 0

The absence of private property rights or the lack of sufficient enforcement of existing property rights.

You might be interested in

Although appealing to more refined tastes, art as a collectible has not always performed so profitably. During 2010, a painting

timurjin [86]

Annual rate of return is the amount you gain/lose on average each year. it is calculate as the following:

Rate of Return = (ending value - amount invested) / the number of years

(1,100,000 - 1,680,000) / 3 = annual rate of return

3 0

4 years ago

Crawford Inc. has bonds outstanding during a year in which the general (risk-free) rate of interest has risen. Crawford elected

Lubov Fominskaja [6]

Answer:

Interest expense and a realized gain.

Explanation:

Given:

Crawford Inc. has bonds outstanding during a year in which the general (risk-free) rate of interest has risen. Crawford elected the fair value option for the bonds upon issuance.

Solution:

The company will report Interest expense and a realized gain for the bonds in its income statement for the year.

7 0

4 years ago

Stan is choosing between two goods, candy bars and sodas, and his marginal utility from each is as shown in the table. stan's da

vredina [299]

Answer: Stan will buy 3 units of Candy bars and 5 units of Soda.

Explanation:

The optimal consumption bundle s given by the point where the indifference curve is tangent to the budget line. At this point, the slope of the indifference curve is equal to the slope of the budget line.

That is

$\frac{MRSc}{MRSs} = \frac{Pc}{Ps}$

$\frac{MUc}{Pc} =\frac{MUs}{Ps}$

This marginal utility per dollar is equal for consumption bundles,

1 unit of candy bar, 4 units of soda = Total expenditure = $6 < Income. Thus not optimal

3 unit of candy bar, 5 units of soda = Total expenditure = $11 = Income. Thus optimal bundle

5 unit of candy bar, 6 units of soda = Total expenditure = $16 > Income. Thus not optimal

7 unit of candy bar, 7 units of soda = Total expenditure = $21 > Income. Thus not optimal

Therefore, 3 units of candy bars and 5 units of soda is the only optimal bundle which utilizes all the income to maximize consumption.

4 0

4 years ago

When might the exchange rate affect you most directly?

Tanzania [10]

Answer: answer d seem more likly because you have then traveld to another country

Explanation:

8 0

3 years ago

The payroll register for Gamble Company for the week ended April 29 indicated the following:

seraphim [82]

Answer and Explanation:

The journal entries are shown below:

1. Salaries expense Dr $1,560,000

To Social security tax payable $93,600

To Medicare tax payable $23,400

To Federal income tax withheld payable $312,000

To Salaries payable $1,131,000

(Being the payroll is recorded)

For recording this we debited the salary expense as it increased the expenses and credited all payable as it also increased the liabilities

2. Payroll tax expense Dr $132,600

To Social security tax payable $93,600

To Medicare tax payable $23,400

To State unemployment tax payable ($260,000 × 5.4%) $14,040

To Federal unemployment tax payable ($260,000 × 0.6%) $1,560

(being the payroll tax expense is recorded)

For recording this we debited the payroll expense as it increased the expenses and credited all payable as it also increased the liabilities

7 0

4 years ago

What are the sources of externalities and market​ failure?

What are the sources of externalities and market failure?