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Ierofanga [76]
3 years ago
8

Whenever the production of a good creates negative externalities, an unregulated market will result in:

Business
1 answer:
sp2606 [1]3 years ago
6 0

Answer:

Option (C) is correct.

Explanation:

In an unregulated market, negative externality results in a higher social marginal cost than the firm marginal cost because this market is not properly regulated by the government officials. Hence, these firms are not taking into account the effect of negative externalities in their cost.

We know that the consumer's decision is more offenly based on the point where the marginal cost is equal to the marginal benefit because they are not taking the impact of negative externalities.

If proper action is not taken by the government, negative externality will result in a market inefficiencies.

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The foreign purchases, interest rate, and real-balances effects explain why the select one:
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Ellis issues 8.0%, five-year bonds dated January 1, 2018, with a $530,000 par value. The bonds pay interest on June 30 and Decem
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Answer:

1. Total interest rate is $166,790

2. Refer to the attached file for the straight-line amortization table for the bonds' life.

3.

To record interest rate paid in 30th June 2018:

Dr Interest expenses                            16,679

Dr Premium on bond payable             4,521

Cr Cash                                                 21,200

To record interest rate paid in 31st Dec 2018:

Dr Interest expenses                            16,679

Dr Premium on bond payable             4,521

Cr Cash                                                 21,200

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