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3 years ago

Which of the following represents a market failure?

Business

1 answer:

Marat540 [252]3 years ago

7 0

Answer:

a. Shopping for used cars when the seller has private information about the car unavailable to the buyer

Explanation:

When the market is not able to produce an efficient quantity, then it is said that market is failed. This might happens due to many reasons and asymmetric information is one of them. When there is an asymmetric information, then the sellers of the used car have information about it, but the buyer do not have the full information about the used car.

Hence this leads to inefficient outcome and therefore market fails.

Hence it can be said that a market failure example is Shopping for used cars when the seller has private information about the car unavailable to the buyer.

Hence option first is the correct answer.

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L Brands, which owns Victoria’s Secret, had to decide what to do with the struggling division. The decision executives at L Bran

Troyanec [42]

Answer:Non- Programmed Decision

Explanation:

In deciding who to hire, L Brands executives had to consider multiple options, which made the decision poorly defined.

So also, the decision had huge important consequences for the company: Picking the wrong CEO could be very costly and may lead to it winding up.

3 0

3 years ago

Select the correct answer.

SOVA2 [1]

B.............................

4 0

4 years ago

Read 2 more answers

Rev. Elvin Snider is the ordained minister at Crossroads United Methodist Church. His salary on his Form W-2 is $20,000. He also

8_murik_8 [283]

Answer: $32000

Explanation:

It should be noted that ministers or clergymen can exclude the home rental value or housing cost from the calculation of the gross income

Rev. Snider's self-employment income

Therefore, in this case, Rev. Snider's self-employment income will be:

Salary = $20,000

Add: Housing allowance = $12000

Total = $32000

6 0

3 years ago

Suppose GDP consists of wheat and rice. In 2005, 20 bushels of wheat are sold at $4 per bushel, and 10 bushels of rice are sold

Vesnalui [34]

Answer:

Nominal GDP is $100, real GDP is $50, and the GDP Deflator is 200

Explanation:

Given that:

Base year = 2004

2004:

20 Bushels of wheat = $2 per bushel

10 Bushels of rice = $1 per bushel

2005:

20 Bushels of wheat = $4 per bushel

10 Bushels of rice = $2 per bushel

Nominal GDP

GDP deflator = (Nominal GDP / Real GDP) * 100

2005 Nominal GDP:

Final value of goods at current year prices:

(20 * $4) + (10 * $2)

$80 + $20 = $100

2005 Real GDP:

Final value of goods at base year prices :

(20 * $2) + (10 * $1)

$40 + $10 = $50

Deflator :

(Nominal GDP / Real GDP) * 100

($100 / $50) * 100

2 * 100 = 200

= 200

4 0

4 years ago

On January 1, Year 1, Marino Moving Company paid $48,000 cash to purchase a truck. The truck was expected to have a four year us

BabaBlast [244]

Answer:

a- $4,000.

Explanation:

Double Declining Method

The Accelerated depreciation is charged in this method. The depreciation charged in this method is double of the charged in straight-line depreciation method.

Wecan calculate the depreciation as follow

First, calculate the Double declining rate as follow

Depreciation rate = 2 x (1/useful life) x100 = 2 x (1/4 years) x100 = 50%

Now, Charge this rate to the book value of the asset.

Year 1

Depreciation = Book value x Depreciation rate = $48,000 x 50% = $24,000

Year 2

Book value at start of Year = $48,000 - $24,000 = $24,000

Depreciation = Book value x Depreciation rate = $24,000 x 50% = $12,000

Year 3

Book value at start of Year = $24,000 - $12,000 = $12,000

The Depreciation can be charged upto the salvage value.

Depreciation = Book value - Salvage Value = $24,000 - 8,000 = $4,000

3 0

3 years ago