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Elena L [17]
3 years ago
13

What divergences arise between equilibrium and output and efficient output when(10) a) negative externalities and b) positive ex

ternalities are present?
Business
1 answer:
Ket [755]3 years ago
8 0

Answer:

Production or consumption activities lead to an external cost for the third party, which causes the social marginal cost to exceed the private marginal cost. Consumers and producers base their decisions on private marginal cost and there would be an overproduction or excessive consumption of the good. The balance output is more than the efficient output.

Taxes must be imposed to correct the divergence between social and private marginal costs.

On the other hand, production or consumption leads to an external benefit for the third party, which means that the marginal social benefit exceeds the private marginal benefit. Consumers and producers base their decision on private marginal benefit and there would be underproduction or low consumption of the good. The balance output is less than the efficient output. The government would have to provide subsidies to producers or consumers to correct these inefficiencies.

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What does it mean to “diversify” your portfolio?
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Investing all of your money into 1-2 funds so that you can focus on making money through compound interest.

Explanation:

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3 years ago
Economics - What’s an example where the market approach would not be appropriate? Why?
Naddika [18.5K]

try defining what a market approach is: a method of determining the value of a product based on the selling price of similar products.

you can then proceed to think of a specific product or brand which is extremely overpriced (meaning sales volume will be low) or underpriced (meaning profit is not as much as it could be).

a simple example of this could be misjudging the value of real estate, and selling houses, land and other infrastructure for either much more or much less than you should

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3 years ago
Although it is a small company, Zorn Enterprises owns a large number of inexpensive rental housing units in Texas and Louisiana.
inna [77]

Answer:

D) The firm receives more than 70 percent of its income from rents and other passive sources.

Explanation:

Many small corporations change from C corporations to S corporations since S corporations eliminate the double taxation issues. Although S corporations have some limitations specially regarding the number of stock owners (currently limited to 100) and their nationality or legal residence status. They can only issue one type of stock which limits their ability to increase capital. S corporations cannot have more than 70 percent of their income from passive sources (this includes rent).  

7 0
3 years ago
In Southwest’s BMC, the company decided to fly only one type of aircraft. Based on the discussion in the text, what component of
8_murik_8 [283]

Answer:

Resources; it affected the key activities required to repair and maintain the aircraft.

Explanation:BMC(BUSINESS MODEL CANVAS) is a management tool which makes use of visual displays to describe the value of your product or service or the value of your firm to a client, it is a Strategic Business model template that contains key aspects of the value of your products or services and why they should go into a business relationship with your organisation.

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3 years ago
For a competitive market, A. a seller can always increase her profit by raising the price of her product. B. a seller often char
PtichkaEL [24]

Answer: For a competitive market, <u><em>if a seller charges more than the going price, buyers will go elsewhere to make their purchases.</em></u>

Explanation:

A perfectly competitive market has the following characteristics:

(a). In this particular market there are many buyers and sellers.

(b). Also each company makes similar product. i.e. the products are identical in nature.  

(c). In this market buyers and sellers will have access to perfect information about price. and product.

(d). In a competitive market there are no barriers to entry into or exit from the market.

Therefore , <u><em>if a seller charges more than the going price, buyers will go elsewhere to make their purchases.</em></u>

3 0
4 years ago
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