Answer:
The differential revenue is equal to $25,000.
Explanation:
Differential revenue is the difference in revenue that may occur due to different course of actions.
Here, the projected revenue of Alternative A is $125,000.
And, the projected revenue of Alternative B is $150,000.
The differential revenue can be found by calculating the difference between these two.
Differential Revenue
=$150,000-$125,000
=$25,000
So, the differential revenue for this decision will be $25,000.
The situation described refers to an economic imbalance.
Economic imbalance is an economic term that refers to:
- The scenarios in which an economy does not show an equilibrium between two magnitudes that belong to it. For example:
The economic imbalance commonly occurs when the supply of a product or service and its demand are not balanced, on the contrary, they suffer variations that alter the market equilibrium.
According to the above, Georgina experienced this phenomenon (economic imbalance) with her idea of selling cupcakes at her school because the supply (12 cupcakes) greatly exceeded the demand for cupcakes from her schoolmates (3 cupcakes).
Learn more in: brainly.com/question/12414419
A negative externality or spillover cost occurs when the total cost of producing a good exceeds the costs borne by the producer.
- Spillover costs, commonly referred to as "negative externalities," are losses or harm that a market transaction results in for a third party. Even though they were not involved in making the initial decision, the third party ultimately pays for the transaction in some way, according to Fundamental Finance.
- An incident in one country can have a knock-on effect on the economy of another, frequently one that is more dependent on it, known as the spillover effect.
- Externalities are the names for these advantages and costs of spillover. When a cost spills over, it has a negative externality. When a benefit multiplies, a positive externality happens. Therefore, externalities happen when a transaction's costs or benefits are shared by parties other than the producer or the consumer.
Thus this is the answer.
To learn more about spillover cost, refer: brainly.com/question/2966591
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Answer:
It would be unethical and a conflict of interest for Solomon to let his uncle in on the details because it would give his uncle an unfair advantage against the other bidding contractors. It's a form of nepotism
Explanation:
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