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IrinaK [193]
3 years ago
8

Market failure can be caused by low consumer demand. externalities and market power. equilibrium prices. high prices and foreign

competition.
Business
1 answer:
mina [271]3 years ago
5 0

Answer:

Externalities and market power.

Explanation:

Market failure is the economic situation defined by an inefficient distribution of goods and services in the free market.

A good has positive externality if the benefits to third parties not involved in production is greater than the cost. an example of an activity that generates positive externality is research and development. Due to the high cost of R & D, they are usually under-produced. Government can encourage the production of activities that generate positive externality by granting subsidies.

A good has negative externality if the costs to third parties not involved in production is greater than the benefits. an example of an activity that generates negative externality is pollution. Pollution can be generated at little or no cost, so they are usually overproduced. Government can discourage the production of activities that generate negative externality by taxation  

When a firm has market power, he usually sell above equilibrium price so that there is no equilibrium in the market. This can lead to inefficiency and market failure

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Which of the following statements is FALSE? A venture capital firm is a limited partnership that specializes in raising money to
pantera1 [17]

Answer:

Venture capitalists typically control all of the seats on a start-up's board of directors, and often represents the single largest voting block on the board.

Explanation:

A venture capital is a type of capital arrangement by venture capital , provided to start up companies with the prospect of potential growth. Companies that provides financies for start up have a stake in the business they are financing. It is usually a high risk business.

Examples of venture capitalist are

Investment banks, pension funds, insurance companies etc.

Before finances can be made by venture capitalist, the initial capital required to start required to start the business is usually provided by the entrepreneur and his family.

5 0
3 years ago
A company issues 8% bonds with a par value of $190,000 at par on January 1. The market rate on the date of issuance was 7%. The
cluponka [151]

Answer:

$7,600

Explanation:

The computation of cash paid on July 1 to the bondholders is shown below:-

cash paid on July 1 to the bondholders = Par Value × Semi annual coupon rate

= $190,000 × 6 months ÷ 12 months × 8%

= $190,000 × 0.5 × 0.08

= $7,600

We considered the 6 months as semi-annually is mentioned in the question

Therefore for computing the cash paid on July 1 to the bondholders we simply applied the above formula.

7 0
3 years ago
When trading with more developed countries, less developed countries have a comparative advantage in the production of all goods
stealth61 [152]

Answer:

less developed countries do not have a comparative advantage in the production of any goods or services.

Explanation:

Usually less developed countries do not have a full developed production

7 0
3 years ago
The next dividend payment by Savitz, Inc., will be $2.08 per share. The dividends are anticipated to maintain a growth rate of 6
zavuch27 [327]

Answer:

Required return for Savitz: 10.95%

Explanation:

<u>Considering the gordon model we have to solve for the cost of capital (Ke)</u>

\frac{divends}{return-growth} = Intrinsic \: Value

\frac{divends}{Price} = return-growth

\frac{divends}{Price} + growth = return

$Cost of Equity =\frac{D_1}{P)} +g

D1 2.08

P 42

g 0.06

$Cost of Equity =\frac{2.08}{42} +0.06

Ke 0.10952381

8 0
3 years ago
Read 2 more answers
Removing personal information from an online résumé is _____.
MrRa [10]

Removing personal information from an online resume is practicing cyber safety. When adding your resume online you need to put as little personal information as possible so only your name and an email address that is not your personal email but one used specifically for jobs. If you want to you can add a phone number. You remove as much as possible and leave the basics so you do not add your date of birth, home address, you do not need to put your nationality or the city you live in.

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3 years ago
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