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3 years ago

When a market experiences a positive externality,

Business

1 answer:

antoniya [11.8K]3 years ago

5 0

Answer:

b. The demand curve does not reflect the value to society of the good.

Explanation:

An externality is a financial term alluding to an expense or advantage caused or got by an outsider. Nonetheless, the outsider has no power over the making of that cost or advantage.

An externality can either be positive or negative which can be caused by either production or consumption of a good or service. The cost or the benefit can affect an individual or a society as a whole. A typical example of a negative externality is pollution which can cause negative cost to a third party in terms of health expenses. An example of a positive externality on the other hand is when a well educated labor force increase their productivity.

The government and local authorities can control negative externality by imposing taxes and regulation of these products. The government can also overcome negative externality by imposing subsidies on the goods that improve positive externality.

The demand curve however does not reflect the value to society of the good. It only reflects the relationship between the price and the quantity of goods consumed.

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Howat Corporation earned $360,000 during a period when it had an average of 100,000 shares of common stock outstanding. The comm

Lyrx [107]

Answer:

The answer is:

A. Yes

B. 3.6

C. 3.43

Explanation:

A. Yes, the warrants is dilutive because the average market price($15) is higher than option price($10).

B. Since there is no preferred shares or preferred dividends, the basic earnings per share is:

Net income ÷ weighted average shares

= $360,000 ÷ 100,000 shares

= 3.6

C. First we need to find the incremental shares. The formula is:

[(average market price - option price) ÷ average market price]x number of shares

[($15 - $10) ÷ $15] x 15,000 shares

$0.33333 * 15,000 shares

5,000 shares

Total number of shares is now 105,000shares(100,000 shares + 5,000)

Therefore, diluted shares is now

$360,000 ÷ 105,000 shares

3.43

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3 years ago

Riverbed Corporation’s adjusted trial balance contained the following asset accounts at December 31, 2020: Cash $7,280, Land $49

Rzqust [24]

Answer:

Explanation:

Balance sheet: In the balance sheet, the assets, liabilities, and stockholder equity is recorded. In this the accounting equation is used which is shown below:

Total assets = Total liabilities + stockholder equity

The debit and credit side of the balance sheet should always be equal and balanced.

Moreover, it always is prepared on the specified date.

The land is a fixed asset and patents is an intangible asset. Thus these items would not come in the current asset section

The preparation of the current assets section of the balance sheet is presented in the spreadsheet. Kindly find the attachment below:

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3 years ago

Iliana’s gross pay is $2,130 per month. Her deductions total $270. She budgets for $1,000 in fixed expenses and $400 in variable

nexus9112 [7]

Lliana saved $460, her gross of which is $2,130 minus her total deductions which is $270. Her fixed expenses which $1,000 we know that it is liability like payment to the bills, the $400 variables expenses can be her food and transportation or other expense that she might need to spend. In calculation, the equation is $2,130 - $270 - $1,000 - $400 = $460

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3 years ago

Read 2 more answers

A process cost system would be used for all of the following products except computer chips. motion pictures. chemicals. soft dr

denpristay [2]

One thing that a process cost system cannot be used for from the given options is Motion pictures.

<h3>What is process costing?</h3>

This is a method of allocating cost that is based on the same item being mass-produced such that there is no discernable difference between the goods that were produced.

Motion pictures cannot be mass produced which is why they cannot use process costing, Every motion picture is unique and so something more specific is needed to apportion their cost.

Find out more on process costing at brainly.com/question/17129908

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2 years ago

Sometimes word of mouth and expert recommendations cause a product to become more popular. However, the firm that produces this

3241004551 [841]

Answer:

Invariably, the cost of the product will rise. A relatively increase in supply parts directly influences the price of a product.

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4 years ago