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Ostrovityanka [42]
2 years ago
10

In the argument for why perfect competition is allocatively efficient, the price that people are willing to pay represents the g

ains to society and the marginal cost to the firm represents the costs to society. Canyou think of some social costs or issues that are not included in the marginal cost to the firm? Or some social gains that are not included in what people pay for a good?
Business
2 answers:
Leviafan [203]2 years ago
8 0

Answer:

There are some indirect social costs that are included in marginal cost of firms, such as climate change due to green house gas emission, pollution, systemic risk (risk that banking system takes). These costs impose negative effect on economy and are not directly borne by consumer or producer.

There are some indirect social gains that are not included in price paid for good, such as driving an electric vehicle, improved education, fire proof homes, construction and operations of public goods like parks, street lights. These benefits impose positive effect on economy and are not directly borne by consumer or producer.

Explanation:

Alina [70]2 years ago
4 0

Answer:

There are some indirect social costs that are included in marginal cost of firms. such as climate change due to green house gas emission, pollution, systemic risk (risk that banking system takes). These costs impose negative effect on economy and are not directly borne by consumer or producer.  

There are some indirect social gains that are not included in price paid for good, such as driving an electric vehicle, improved education, fire proof homes, construction and operations of public goods like parks, street lights. These benefits impose positive effect on economy and are n directly borne by consumer or producer.  

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We are evaluating a project that costs $744,000, has a six-year life, and has no salvage value. Assume that depreciation is stra
yawa3891 [41]

Answer: $15,400

Explanation:

BEP = Fixed cost - depreciation/ sales - variable cost

BEP = 740,000 - (744,000/6)/($60 -$20)

BEP= $740,000-$124,000/$40

BEP = $616,000/$40

BEP =$15,400

8 0
3 years ago
Suppose the economy is in a recession. The economy needs to expand by at least $350 billion, and the marginal propensity to cons
MissTica

Answer:

$140

Explanation:

Calculation for What is the least amount the government can spend to overcome the $350 billion gap

First step is to find the Multiplier using this formula

Multiplier=1(1-Marginal propensity)

Let plug in the formula

Multiplier=1/(1-0.6)

Multiplier=1/0.4

Multiplier=2.5

Now let calculate the least amount the government can spend using this formula

Least amount=Gap/Multiplier

Let plug in the formula

Least amount=$350 billion /2.5

Least amount=$140

Therefore the least amount the government can spend to overcome the $350 billion gap is $140

4 0
3 years ago
A company has bonds outstanding with a par value of $100,000. The unamortized premium on these bonds is $2,700. If the company r
Lunna [17]

Answer:e. $3,700 gain.

Explanation:

Par value of Bonds =$100,000    

Unamortized premium= $2,700    

Carrying/ Book value of bonds=  Par value of Bonds +Unamortized premium

= $100,000 + $2,700 =$102,700    

Amount at which bonds retired $100,000 x 99% = $99,000  

Gain on retirement of bonds =Book value of bonds- Amount at which bonds retired

=$102,700- $99,000 = $3,700

4 0
3 years ago
Rex loves to work with his hands and is very good at making small figurines. Three years ago, Rex opened Bronze Age Miniatures (
VLD [36.1K]

Solution:

a. $14,900 AR is $6,250

   AP = 14,900 - 6250 = $8650

∴ $8650 * 25% = 2162.5

( 25% = Positive adjustment that is added for 4 years is 25% for an year)

b. $54,800

Sale to the HRU

c. With the help of deferral method for accrual , the amount obtain is follows:

2 mos. $21 for unit  x 600 units

= $25,200

d. $17,496

Sales for Sci-fi convention

e. Will only deduct money i.e. Considered as noncollectable or else expense for schedule c

= $2100

For the accrual method given income at the time of sale

= $233100

f. Costs of goods which are sold

= $159840

g. As $610 airfare in addition with + $165 convention fee also + $222 for lodging +$68 for cab fee+ $164 for meals

= $1229

h. As the earlier payment qualifies comes under the 12-month rule and which is payment liability thus it meets the economic performance test when it pays the insurance company in august

= $5040

i. For depreciation $8450

j. Economic performance for rent expense happens for the rental period

Due to no expenditure has happened , the 12 month rule is inapplicable

Rex may only deduct rent for 11 months it was renting the property ( 11 months * $1710  )

= $18810

K. As the expended immediately = $41,250 ; $41,250 / 180 months = 229

229 * 12 = 2750 other expense for schedule c

L. As $7900 is un-deduct able due to liability which is not constant

Economic preference for the $4200 occurs as AWU provides services

Also BAM may only cut the portion of this extra credit that relates to

December ( 4200 / 12 ) = $350

M. As tax payment liabilities are economic performance and the deduction occurs BAM pay taxes

= $5100

6 0
3 years ago
A firm has sales of $50,000, EBIT of $10,000, depreciation of $4,000, and fixed assets increased by $2,000. If the firm's tax ra
sergij07 [2.7K]

Answer:

$8,000

Explanation:

Data provided in the question:

Sales = $50,000

EBIT = $10,000

Depreciation = $4,000

Increase in Fixed assets = $2,000

Tax rate = 30%

Increase in net operating income = $1,000

Now,

PAT = EBIT - Tax

= 10,000 - (30% of EBIT)

= $10,000 - (30% of $10,000)

= $10,000 - $3,000

= $7,000

Operating cash flow = PAT + depreciation

= $7,000 + $4,000

= $11,000

Therefore,

Free cash flow

= Operating cash flow - Increase in Fixed asset - Net working capital

= $11,000 - $2,000 - 1,000

= $8,000

4 0
3 years ago
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