1answer.
Ask question
Login Signup
Ask question
All categories
  • English
  • Mathematics
  • Social Studies
  • Business
  • History
  • Health
  • Geography
  • Biology
  • Physics
  • Chemistry
  • Computers and Technology
  • Arts
  • World Languages
  • Spanish
  • French
  • German
  • Advanced Placement (AP)
  • SAT
  • Medicine
  • Law
  • Engineering
erica [24]
3 years ago
13

Describe an example of a problem that could be solved using the Coase theorem. Do this by defining a hypothetical situation wher

e one individual is causing a negative externality on another individual. Describe whether it matters who holds property rights. Define the three necessary conditions for Coase theorem to work completely. Describe why a failure of these conditions will likely cause Coasian bargaining to fail.
Business
1 answer:
wariber [46]3 years ago
3 0

Answer:

Explanation:

Theorem Utilization: Coase Theorem has been created to take care of the issue of market disappointment. Market disappointment exists where value component doesn't convey productive outcome.  

Example : For instance, dairy cattle of Rancher wandered into close to field. this is a sort of negative externalities. On the off chance that property right is given to rancher, at that point he can sue Rancher for making harm crop. Yet, there is no privilege to rancher, it suggests that privilege has been given to farmer. Presently here rancher will attempt to repay Rancher to lessen the size of his cows group.  

Three necessary conditions:

  1. The rights of property should be well defined.
  2. The rights of property should be transferable.
  3. The cost of transaction must be sufficiently small.

It doesn't make a difference whom property right is given, there will be effective results. Coase hypothesis bombs where haggling cost rises or free rider issues are seen.

You might be interested in
"Modern technology is developed from local / traditional technology." Justify this statement
melisa1 [442]

Explanation:

<h3>Modern technology would be things that we have today such as smart phones, tablets, gaming systems and computers. Traditional/Local technology would be things such as handicrafts that were made before things such as computers and new technology are inverted.</h3>
8 0
3 years ago
Kong Inc. reported net income of $298,000 during 2018 and paid dividends of $26,000 on common stock. It also has 10,000 shares o
julsineya [31]

Answer:

17%

Explanation:

The actual return which stockholder receives on the average common equity is return on common stockholder's equity.

Return on Common Stockholder Equity = (Net Income - Preferred dividend) / Average common stockholders equity

Return on Common Stockholder Equity = ($298,000 - (10,000 x $100 x 6%) / ( ( $1,200,000 + $1,600,000 ) / 2 )

Return on Common Stockholder Equity = ($298,000 - $60,000) / $1,400,000

Return on Common Stockholder Equity = 0.17 = 17%

3 0
3 years ago
Gypsy foods inc. is a multinational food and beverage company. its product labels are colorful and project the words "new" and "
8090 [49]

D) Persuasive labeling_ The product is created to capture the attention of the customer. Rather than focusing on any other factors it focuses on the creativeness

7 0
3 years ago
Rock industries allocates manufacturing overhead at a predetermined rate of 160% of direct labor cost. Any overallocated or unde
nadya68 [22]

Answer:

<u>Cost of goods manufactured for November.</u>

Manufacturing Schedule Cost

Beginning Inventory (Job 205)                $11,800

Direct materials                                       $26,000

Direct labor costs                                     $21,000

Applied Overheads ($21,000 x 160%)    $33,600

Less Ending Inventory (Job 104)            ($6,900)

Cost of Goods Manufactured                 $85,500

<u>Journal entries to record the current month activity.</u>

Debit : Work In Process $80,600

Credit : Direct materials                                       $26,000

Credit : Direct labor costs                                     $21,000

Credit : Applied Overheads ($21,000 x 160%)    $33,600

<u>Calculation of amount of over allocated or under allocated manufacturing overhead</u>

Actual Manufacturing Overheads = $32,000

Applied Manufacturing Overheads = $33,600

Therefore, Overheads Over-applied = $1,600

4 0
3 years ago
In a small, closed economy, national income (GDP) is $ 400.00 million for the current quarter. Individuals have spent $ 150.00 m
Mashcka [7]

Answer:

The amount spent in this economy in the said quarter is<em> $100,000,000.00</em>

Explanation:

<em>However, in closed economies what it simply means is that there are no exports and imports.</em>

<em />

Investment (I) = business investment plus residential investment plus inventory investment. Government Purchases (G) = general government consumption plus general government investment. Net Exports (NE) = exports minus imports plus net tourism.

∴ to calculate the amount of money spent on this closed economy, I will use the <em>Expenditure Approach formula</em> for GDP and make Investment the subject of the formula which is

GDP formula is used which states that total output/GDP (Y) is equal to Consumption (C) + Investment (I) + Government Spending (G) + Net exports (NX). Where net exports is exports (X) minus imports (M): NX = X – M.

Where:

GDP (Y) = C + I + G + (X-M)

Where:

GDP (Y) = $400,000,000.00

C = $150,000,000.00

I = 0

G = $150,000,000.00

(X-M) = 0

GDP (Y) = C + I + G + (X-M) =

$400,000,000.00 = $150,000,000.00 + (I) + 150,000,000.00 + (X-M)

Making (I) the subject of the Formula

GDP- C -G = I

∴ $400,000,000.00 - $150,000,000.00 - $150,000,000.00 = I

∴ $400,000,000.00 - $300,000,000.00

=<em> $100,000,000.00</em>

<em></em>

The amount spent in this economy in the said quarter

=<em> $100,000,000.00.</em>

<em></em>

<em>Note: </em><em>I did not add the Tax because I used the Expenditure approach method which does not include the tax values while the Income Approach method does include it but excludes Export and Import values.</em>

6 0
3 years ago
Other questions:
  • Harry's Pepperoni Pizza Parlor produced 10,000 large pepperoni pizzas last year that sold for $10 each. This year Harry's again
    9·1 answer
  • Problem statements in business reports are most effective when their matter-of-fact tone downplays the urgency of the problems.
    6·1 answer
  • Which of these statements about a business plan is true?
    7·2 answers
  • If the reserve-deposit ratio is less than one, and the monetary base increases by $1 million, then the money supply will
    13·2 answers
  • Which of the following events would cause the supply curve to decrease from Upper S 1 to Upper S 2​? A. Lower expected future pr
    6·1 answer
  • If the allowance method of accounting for uncollectible receivables is used, what general ledger account is debited to write off
    9·1 answer
  • which result is a positive aspect of globalization a.intense competition b. decreased profit margins c. increased cooperation co
    11·1 answer
  • The two phases of new employee training are orientation and _________ .
    12·2 answers
  • Create a minimum of 10 questions that you will ask your potential marketing client in order to be able to create and develop an
    9·1 answer
  • HELP!!
    12·2 answers
Add answer
Login
Not registered? Fast signup
Signup
Login Signup
Ask question!