<span>Then the private benefit from consumption
will will not be the same as the social benefit from consumption.</span>
An externality is the impact of a buy or choice on a man group who did not have a choice in the occasion and whose interests were not considered. Externalities, at that point, are overflow impacts that fall on parties not generally engaged with a market as a maker or a buyer of a product or service. Externalities can be negative or positive, and externalities can come about because of either the production or the utilization of a good, or both.
Answer: LICENSING
Explanation: Licensing is a business arrangement process whereby an organization or business entity with already existing product and good market prospect allows another company in another country or society to produce it's Products, in return the company licensed to produce the product will pay certain percentage of the Revenue from the sale of the product to the business or organization that issued the License. In this case the company will not face the risk of losing control over the management skills or technological know-how.
A method of costing whereby overhead costs are allocated to a job by multiplying the actual cost of the allocation base incurred by the job by a specified overhead rate is known as Normal Costing.
<h3>
What is predetermined overhead rate?</h3>
An allocation rate known as the predetermined overhead rate allocates a specific amount of manufacturing overhead to job orders or goods.
Predetermined overhead is frequently calculated at the start of each reporting period by dividing the anticipated manufacturing overhead expenses by an allocation base.
The allocation base refers to the time taken to perform an activity such as the machine hours, direct labor hours etc.
Normal Costing also known as the product costing method in which the several cost such as the direct cost, material cost, manufacturing overhead cost as well as the work in progress is added.
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Answer:
Second year :
Nominal rate = 8.15%
Real rate = 5%
Third year :
Nominal rate = 6.00%
Real rate = 4.95%
Explanation:
Nominal return =(Interest + price change) / initial price
Real rate of return = (1 + nominal rate) / (1 + inflation) - 1
Second year:
Nominal return = [53.05 + (1060.90 - 1030)]÷ 1030
(53.05 + 30.90) ÷ 1030 = 0.0815 = 8.15%
Real rate
[(1 + 0.0815) ÷ (1 + 0.03)] - 1
(1.0815 ÷ 1.03) - 1 = 0.05 = 5%
THIRD YEAR:
Nominal return = [53.58 + (1071.51 - 1060.90)]÷ 1060.90
(53.05 + 10.61) ÷ 1060.90 = 0.060 = 6.00%
Real rate
[(1 + 0.060) ÷ (1 + 0.01)] - 1
(1.060 ÷ 1.01) - 1 = 0.0495 = 4.95%
