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agasfer [191]
3 years ago
14

National defense is a good that is nonexcludable and nonrival in consumption. Suppose that instead of national defense being pai

d for with tax dollars national defense is paid for by voluntary contributions from (potentially) all individuals within Latvia. Ernest, who is a Latvian citizen, must decide whether he wants to contribute to the national defense budget. Further, suppose that there are a total of 10 citizens, including Ernest. For the optimal amount of safety, each citizen should pay $ 10. Every $ 1 contributed (by anyone) to the national defense leads to increased security, which each person values at $ 0.30. This means that every dollar spent on defense is worth $ 3.00 to Latvia as a whole. How much does Ernest personally value the increase in national defense when he contributes $ 10 to the defense fund?
Business
1 answer:
MrRissso [65]3 years ago
8 0

Answer:

Explanation:

It is given that each person values the increase at $0.30

This means that when Ernest contributes $10 to the defense fund, his valuation is 10*0.03 = 3$

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If a company's cost of capital increases unexpectedly, which of the following actions will help it maintain or increase its stoc
Kitty [74]

Answer:

III) Increase its gross margin

Explanation:

If the company increases its gross margin, it will have a direct impact on the company's net profit. The higher a company's net profit, the higher its value = higher stock price.

The only option that increases the value of the company is to increase its net profit, since:

  • an increase in inventory will result in a lower stock price
  • a decrease in the asset turnover ratio will result in a lower stock price
  • the issuing of stock dividends will only increase the price of stock in the short run, later the price will adjust down since the company's book value will lower
4 0
3 years ago
why might a company decide to outsource (i.e., buy) a product that they currently make in their company-owned operations?
mestny [16]

Companies outsource to save costs or improve the value of their goods. There are several options when deciding whether to outsource a business' operations or production.

The use of outsourcing has increased as a way for businesses to cut expenses and concentrate on what they do best. A business precise known as outsourcing involves a corporation hiring a third party to carry out duties, manage operations, or offer services on their behalf.

Reduce and manage operating expenses. Enhance the company's focus. liberate internal resources for fresh endeavors. Increase output for some time-consuming tasks for which the organization may lack the resources.

The finest examples of outsourcing include website creation, office and warehouse cleaning, and advertising.

To learn more about outsourcing

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3 0
1 year ago
A Municipal Finance Professional (MFP) lives in State A. The MFP gives $200 to the election campaign of a personal friend who is
Darya [45]

Answer:

B The payment will not result in the employing firm being banned from doing municipal securities business with State B because it was made based on a personal relationship.

Explanation:

The rule of de minimis applies to persons making donations to candidates vying for elective positions.  $250 de minimis is applicable to a person who will vote for a candidate in an election.  If a person will not vote for the candidate, the de minimis is $150.

In this case, the MFP will not be voting for the candidate.  She is allowed to donate only $150.  Any excess will be refunded.  However, since the MFP is making the donation on his personal capacity, the firm as a separate entity will not be penalized for what the MFP does with her money.  It is likely that the firm does not even do contracts with the municipality.  However, they are not based in the same area.

8 0
3 years ago
Mr. Coffey bought a house for $195,000. He made a 20% down payment. The interest rate is 5.25% for 30 years.How much was Mr Coff
s344n2d4d5 [400]

Answer:

$39,000

Explanation:

Down payment refers to the amount that Mr. Coffey paid upfront at the time of purchasing the house. It is usually a percentage of the total cost and is paid in a lump sum.

In this case, Mr. Coffey 20 % of the cost of the house

i.e., 20% of $195,000

=20/100 x $195,000

=0.2x$195,000

=$39,000

4 0
3 years ago
What is a budget, how does it work, and how can it help you?
amid [387]

Answer:

A budget is how much you can spend

Explanation:

what i mean by that is lets say you want to buy a house for 250 thousand dollars that is your budget

8 0
3 years ago
Read 2 more answers
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