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telo118 [61]
3 years ago
6

If you are willing to purchase a house for $500,000 and you purchase the house for $500,000, this transaction will generate:

Business
1 answer:
wel3 years ago
4 0

Answer:

c. $0 worth of buyer surplus and unknown amount of seller surplus

Explanation:

Given that

Selling price of house = $500,000

The purchase value of house =$500,000

By considering the above information,  the purchase and sales value are the same which reflects that the buyer surplus is zero and there is no definite amount or unknown amount of seller surplus as the data is not given.

Hence, the correct option is c.  

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why is government intervention often crucial when dealing with both positive and negative externalities?
Dennis_Churaev [7]

Answer:

Because the government can use her sovereign power to both mitigate negative externalities as well as encourage positive externalities.

Explanation:

A positive externality occurs when the transaction between a producer and end user benefits a third party that did not take art in the process.

A very Good example is Education. There is a third party benefit to the society when we have more educated citizens.

A negative externality happens when the business transaction between a manufacturer and consumer affects a third party adversely. a typical example is cigarettes. When cigarettes is consumed by the end user, the smoke can affect the health of a third party that was not part of the initial transaction.

To deal with both positive and negative externalities, government intervention is very crucial.

Government encourages positive externalities like education by subsidizing the cost of attending a school. They also enact laws that make basic education compulsory.

In the case of negative externalities, Government can intervene with a ban on producing harmful goods and also set a legislation about smoking in public laces to mitigate  the health complications caused by third party inhalation.

6 0
3 years ago
The starting point for preparing the operating activities section using the indirect method is ______. Multiple choice question.
vitfil [10]

Net income serves as the beginning point for the indirect technique of preparing the operating activities section.

<h3>What does "net income" mean?</h3>

Net income is the amount of money left over after all costs, such as salaries and wages, the cost of commodities or raw materials, and taxes, have been paid. Net income is the amount that a person keeps after paying taxes, health insurance premiums, and retirement contributions.

<h3>How is net income demonstrated?</h3>

Operating income for the business was $23,000 after operating costs of $12,500. After deducting interest expense of $1,500 and adding interest income of $1,700, ABYZ arrived at a net income before taxes of $23,200.

<h3>What is net income post-tax?</h3>

A person's income after taxes and deductions is referred to as their net income.

learn more about net income here <u>brainly.com/question/15530787</u>

#SPJ4

5 0
2 years ago
Marketing Docs prepares marketing plans for growing businesses. For 2017, budgeted revenues are $1,500,000 based on 500 marketin
pishuonlain [190]

Answer:

Option (a) is correct.

Explanation:

Contribution margin per marketing plan = Sales - Variable cost

                                                                   =  $3,000 - $2,000

                                                                   = $1,000

A.

(1) Break-even\ in\ rooms=\frac{Fixed\ cost}{contribution\ margin\ per\ marketing\ plan}

Break-even\ in\ rooms=\frac{400,000}{1,000}

Break even in marketing plan = 400

(2) Break-even in dollars:

= Break-even in marketing plan × Average rate per plan

= 400 × 3,000

= 1,200,000

(3) Margin of safety = Actual sales - Break-even sales in dollars

                                = 1,500,000 - 1,200,000

                                = 300,000

Margin\ of\ safety\ ratio=\frac{Margin\ of\ safety}{Actual\ sales}

Margin\ of\ safety\ ratio=\frac{300,000}{1,500,000}

                                             = 20%

B.

(1) Contribution margin per marketing plan = Sales - Variable cost

                                                                   =  $4,000 - $2,000

                                                                   = $2,000

Break-even\ in\ rooms=\frac{Fixed\ cost}{contribution\ margin\ per\ marketing\ plan}

Break-even\ in\ rooms=\frac{400,000}{2,000}

Break even in marketing plan = 200

(2) Break-even in dollars:

= Break-even in marketing plan × Average rate per plan

= 200 × 4,000

= 800,000

(3) Margin of safety = Actual sales - Break-even sales in dollars

                                = 1,500,000 - 800,000

                                = 700,000

Margin\ of\ safety\ ratio=\frac{Margin\ of\ safety}{Actual\ sales}

Margin\ of\ safety\ ratio=\frac{700,000}{1,500,000}

                                             = 47%

Therefore, option (a) would achieve the margin of safety ratio more than 45%.

7 0
3 years ago
Determine Digby's current strategy. How will they seek a competitive advantage? From the following list, select the top five sou
GalinKa [24]

Answer:

Please find the detailed answer as follows:

Explanation:

After reviewing Digby's current strategy, top five sources of competitive advantage for digby are as follows:

  • Increase demand through TQM initiatives .
  • Offer attractive credit terms .
  • Seek excellent product designs, high awareness, and high accessibility .
  • Seek high plant utilization, even if it risks occasional small stockouts .
  • Reduce cost of goods through TQM initiative.

Related concepts to understand the problem.

Competitive advantage. A competitive advantage is an improvement over competitors gained by contribuiting consumers greater value.

5 0
3 years ago
9.
svp [43]
A. By eliminating the effects of price increases on GDP growth. Nominal GDP is calculated using the current prices while Real GDP is adjusted for inflation.
4 0
3 years ago
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