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2 years ago

A coase solution to a problem of externality ensures that a socially efficient outcome is to

1 answer:

4 0

A coase solution to a problem of externality ensures that a socially efficient outcome is to maximize the joint welfare, irrespective of the right of ownership.

Explanation:

In law and in economics the Coase theorem explains the economic efficiencies in the existence of externalities. The economic efficiency of economic allocation or outcome. In practice, barriers to negotiation or poorly defined rights of property can prevent coasean negotiations.

The private external solutions include, for the benefit of the relevant parties, moral codes, charities and business fusions and contracts. In the theorem, two parties can bargain and obtain an optimal outcome in the presence of an externality when transaction cost is low.

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True or false: the heckscher-ohlin theory addresses two questions left unexplained by the ricardian theory: what determines comp

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is the answer to this True?

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2 years ago

Bernice’s has $823,000 in sales. The profit margin is 4.2 percent and the firm has 7,500 shares of stock outstanding. The market

Irina-Kira [14]

Answer:

a. 3.58

Explanation:

the price earning ratio is obtain with the following formula:

$\frac{Market \: Price}{EPS}$

We are given with the market price, now we need to solve for the EPS

with sales and profit margin we solve for net income. then we divide by the shares outstanding to get the EPS

823,000 sales x 4.2 profit margin = 34.566‬ net income

now we solve for EPS Earning per share:

$\frac{Income}{Shares}\\\frac{34,566}{7,500} = 4.6088‬$

Now we can sovle for price-earnings ratio

$\frac{Market \: Price}{EPS}$

16.50/4.61 = 3,5791 = 3.58

8 0

2 years ago

For a perfectly competitive firm, a. the marginal revenue curve and the demand curve are the same. b. the marginal revenue curve

Harman [31]

Answer:

The correct answer is the option A: the marginal revenue curve and the demand curve are the same.

Explanation:

To begin with, the concept of<em> ''perfectly competitive market''</em> refers to the market where there are a lot of firms and their products are exactly the same with no differentation, therefore that they can not establish an influence in the price. In addition to that, in this type of market the equilibrium is in the point where the marginal revenue equals the marginal cost and in this case where there is no influence from the firms then the price of the product will be established by the demand itself and therefore that also the marginal revenue of the firm as well.

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2 years ago

A market supply curve is determined by a. finding the average price at which sellers are willing and able to sell a particular q

ArbitrLikvidat [17]

Answer:

d. horizontally summing individual supply curves.

Explanation:

Each firm will have its own supply curve depicting the relationship between the price and the quantity of goods it is willing to produce at that given price. The market supply curve is obtained by aggregating the different firm supply curves i.e. the total quantity suppliers are willing to produce when the product is sold for a given price.

Based on the above, option d is the correct answer.

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2 years ago

Scoring: Your score will be based on the number of correct matches. There is no penalty for incorrect or missing matches. Match

slega [8]

Answer and Explanation:

The matching is as follows:

1. Dividends = A. Stockholders' Equity

2. Prepaid Insurance = D. Assets

3. Unearned Rent = E. Liabilities

4. Fees Earned = B. Revenue

5. Patents = D. Assets

In this way it should be matched

Like the dividend is come under equity so it is shown under stockholder equity

likewise it is applied for the other items

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2 years ago