Answer:
The free rider problem
Explanation:
The free rider problem is a form of market failure in economics. It means that there's an insufficient form of commodity distribution in which some individuals are allowed to consume more than their fair share of the shared resources or pay less or not at all than the fair share of cost. In this case, tomatoes are overgrown and the common plot is over used, thus making individually owned plot perform better than the common plot. The whole free rider scenario occurs when those who benefits from communal services and goods do not pay for them or underpay for them and over use them.
Answer:
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Answer:
differential cost
Explanation:
When you are elaborating a differential cost analysis between two alternative projects or actions, you are looking for the difference in total costs between both alternatives.
For example, you might elaborate a cost analysis to decide whether to continue or stop the production of a certain good. What are the costs associated with stopping the production versus thee profitability of continuing the production.
Answer:
NPV is -$12,960
Explanation:
Net present value is the Net value all cash inflows and outflows in present value term. All the cash flows are discounted using a required rate of return.
In this question all the expenses are cash outflows and The cost saving is the cash inflow from the new machine investment.
Working for the NPV is attached with the answer please find it.
Answer:
D. If Hazel sells the chocolate fountain for $3,300, she will have a $1,500 capital gain.
Explanation:
I´m assuming that Hazel is a person that owns this event planning company.
The current book value of the chocolate fountain = purchase cost - accumulated depreciation = $3,000 - $1,200 = $1,800
If the chocolate fountain (or any asset) is sold at a higher price than book value, then a capital gain must be recognized. If the chocolate fountain is sold at a lower price than book value, then a capital loss should be recognized.
$3,300 (selling price) - $1,800 (book value) = $1,500 capital gain
