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stellarik [79]
3 years ago
6

Bakers are much likely to supply pastries to the market if property rights are not enforced. In the presence of market failures,

public policy can improve economic efficiency. Classify the source of market failure in each case listed.
Business
1 answer:
bixtya [17]3 years ago
6 0

Answer:

1) When there is only one car dealership in a small town, giving the dealership the ability to influence the price of cars, market failure is due to <u>MARKET POWER. </u>

2) When a manufacturing plant dumps chemical waste into a nearby river, poisoning the water supply for a small town downstream, market failure is due to <u>EXTERNALITY.</u>

Explanation:

The car dealership has an excessive market power , which refers to the firms ability to increase the price of its products (cars) above the price of a competitive market.

When the manufacturing plant dumps chemical wastes into the river, it is causing a negative externality  on the town's water supply. This means that the town (which is a third party in this case) is suffering from the actions  of another party's economic transactions.

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Engineer Brown has been engaged in providing consulting engineering services for a number of years as a sole proprietor. Because
frez [133]

Answer:

Engineer Brown has been engaged in providing consulting engineering services for a number of years as a sole proprietor. Because his practice was growing, he recently hired another engineer and decided to commence offering professional services under the name of Brown and Associates. In order to comply with the rules he must

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Explanation:

Since it is the same company but just with change of name changes, notification to the company he render services for is only needed to avoid confusion about the authenticity of the company

7 0
4 years ago
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Supply costs at Lattea Corporation's chain of gyms are listed below:
Reptile [31]

Answer:

The correct answer is d. $0.31 per client-visit; $24,766 per month.

Explanation:

The costs can be of fixed nature or a variable nature or of a mixed nature. A mixed costs contains a component of both fixed and variable costs. The high-low method is used to calculate the variable component per unit of a mixed cost. Th formula for high low method is:

Variable cost per unit = (Highest activity cost - Lowest activity cost) / (Highest activity level - Lowest activity level)

the highest activity is in June, 13400 client visits and the highest cost is also of this activity. The lowest activity is in August, 11207 client visits and the lowest cost belongs to this activity.

Variable cost per unit = (28920 - 28235)  /  (13400 - 11207)

Variable cost per unit = $0.31 rounded off to two decimal places

The fixed cost = Total cost - total variable cost

Taking 13400 activity,

The fixed component is = 28920 - (0.31 * 13400) = $24766 per month

Thus, the correct answer is d.

5 0
3 years ago
Why might you want to use an encoder to convert a WAV file to an MP3 file ?
Alona [7]
Mp3 files are more easily assessed and used by the public, making it a more viable option for files which you intend to share. 
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3 years ago
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Eddi Din [679]
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andreev551 [17]
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