1answer.
Ask question
Login Signup
Ask question
All categories
  • English
  • Mathematics
  • Social Studies
  • Business
  • History
  • Health
  • Geography
  • Biology
  • Physics
  • Chemistry
  • Computers and Technology
  • Arts
  • World Languages
  • Spanish
  • French
  • German
  • Advanced Placement (AP)
  • SAT
  • Medicine
  • Law
  • Engineering
SVEN [57.7K]
2 years ago
7

Suppose that a cafe enjoys a large increase in customers whenever the jazz club next door features a band playing appealing musi

c because it can be easily heard from the cafe. The jazz club owner decides to purchase the cafe so that he can internalize this positive externality. Which of the following types of private solutions to the externality of appealing music has occurred in this case?
a. Contracts
b. Charities
c. Moral codes and social sanctions
d. Integration of different types of businesses through merger or acquisition
Business
1 answer:
ExtremeBDS [4]2 years ago
7 0

Answer:

D. Integration of different types of businesses through merger or acquisition

Explanation:

Externalities occur when the production or consumption of a particular good or service affects a third-party who is not related to the transaction. A positive externality is one that is favorable and beneficial to the third party and a negative externality is one that is unfavorable and creates a cost to the third party. In this case, the third party is the owner of the cafe and it is a positive externality because the music creates an increase in the number of customers to his/her business.

When the jazz club owner purchases/acquires the cafe, the cafe becomes his. Hence, the benefit felt to the cafe by the music from the jazz club is a benefit that his own new business incurs. Thus, the integration of these two businesses into one helps internalize the positive externality since now the main party involved in the transaction is also the one feeling the positive externality and not a third-party as used to be.

You might be interested in
What type of life insurance are credit policies issued as?
trasher [3.6K]
<span>They are considered decreasing term policies. In these policies, the benefits usually decrease over the life of the policy: that is, the closer one gets to the end of the policy term, the less the benefit will typically be. At the end of the term, there is no option to renew for the same premiums, and the policy simply expires.</span>
6 0
3 years ago
When four infineon technologies executives participated in an international conspiracy to fix prices for computer memory chips,
marshall27 [118]

When four infineon technologies executives participated in an international conspiracy to fix prices for computer memory chips, they were acting with other firms as a cartel.

Given an incomplete sentence related to infineon technologies.

We are required to fill the sentence by an appropriate term.

We can fill the sentence with "a cartel".

A cartel is basically a formal agreement among firms in an oligopolistic industry. Members of cartel may agree on such matters as prices, total industry output, market shares, allocation of customers, allocation of territories, bid-rigging, establishment of common sales agencies, and the division of profits or combination of these. It is basically a group of people who are collected to complete an objective.

Hence when four infineon technologies executives participated in an international conspiracy to fix prices for computer memory chips, they were acting with other firms as a cartel.

Learn more about cartel at brainly.com/question/12015868

#SPJ4

7 0
1 year ago
In determining basic earnings per share, dividends on nonconvertible cumulative preferred stock should be:a. deducted from net i
DiKsa [7]

Answer:

b. deducted from net income whether declared or not

Explanation:

The formula to compute the basic earning per share is shown below:

Basic earning per share = (Net income - preferred stock dividend) ÷ (weighted average of outstanding shares)

In the case of the non- convertible cumulative preferred stock, the dividend should be paid whether the business earns profit or loss. If the business does not earn any profit during a particular year, in that period the dividend amount is carried forward to next year.

So, the dividend arrears are to be paid to the cumulative preferred stock.

4 0
2 years ago
Leader Corporation Company uses a job-order costing system with a single plantwide pre-determined overhead rate based on machine
taurus [48]

Answer:

Selling price per unit= $196

Explanation:

<u>First, we need to calculate the predetermined overhead rate:</u>

<u></u>

Predetermined manufacturing overhead rate= total estimated overhead costs for the period/ total amount of allocation base

Predetermined manufacturing overhead rate= (400,000 / 50,000) + 6

Predetermined manufacturing overhead rate= $14 per machine hour

<u>Now, we can allocate overhead and calculate the total cost:</u>

<u></u>

Allocated MOH= Estimated manufacturing overhead rate* Actual amount of allocation base

Allocated MOH= 14*100= $1,400

Total cost= 1,400 + 750 + 2,750

Total cost= $4,900

<u>Finally, the selling price per unit:</u>

<u></u>

Unitary cost= 4,900/40= $122.5

Selling price= 122.5*1.6

Selling price= $196

3 0
3 years ago
EMC Corporation has never paid a dividend. Its current free cash flow of $490,000 is expected to grow at a constant rate of 4.4%
disa [49]

Answer:

$5,697,674

Explanation:

Dividend Valuation method is used to value the operations of a company based on the dividend paid, its growth rate and rate of return/WACC. The price is calculated by calculating present value of future dividend payment.

Free cash flow is the residual cash flow of operation after paying the capital expenditure from net income of the company. It represent the cash from the operations.

Formula to calculate the value of operation

Value of Operations = FCF / ( WACC - growth rate )

Value of Operations = $490,000 / ( 13% - 4.4% )

Value of Operations = $5,697,674

7 0
3 years ago
Other questions:
  • "Worldwide Food Services, InC., (WFS) has a large number of cooks and other food service workers who will be sent to hardship en
    13·1 answer
  • What percentage of the u.s. adult population has a college or post-college education (as of 2012)?
    12·1 answer
  • Mack's guitar fabrication shop produces low cost, highly durable guitars for beginners. Typically, out of the 100 guitars that b
    5·1 answer
  • Your goal is to have $15,000 in your bank account by the end of four years. If the interest rate remains constant at 4% and you
    5·1 answer
  • eBookPrintReferences Check my work Check My Work button is now enabledItem 180Item 180 Ouelette Corporation's relevant range of
    15·1 answer
  • A company estimates that warranty expense will be 4% of sales. The company's sales for the current period are $185,000. The curr
    7·1 answer
  • The stock of Mulberry Corporation is owned by Archana (60%) and Anar (40%), who are mother and daughter. Pursuant to a plan of c
    8·2 answers
  • (Part 1) If Malaland exports $59 billion in goods to Bursia, and Malaland imports $42 billion of goods from Bursia , what is the
    10·1 answer
  • On June 30, 2018, the Esquire Company sold some merchandise to a customer for $48,000. In payment, Esquire agreed to accept a 9%
    15·1 answer
  • Why do you think an entrepreneur might choose to keep a business small rather than expand it?​
    6·1 answer
Add answer
Login
Not registered? Fast signup
Signup
Login Signup
Ask question!