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Zigmanuir [339]
3 years ago
9

A subsidy that is used to internalize a positive externality will ideally cause the demand curve to shift __________ to the ____

_________ curve and output will ____________ to the socially optimal output.
Business
1 answer:
ddd [48]3 years ago
5 0

Answer:

a. rightward

b. MSB

c. increase

Explanation:

Externalities are defined as consumption, production and investment decisions made by individuals, households and companies and that affect third parties that do not participate directly in these transactions. Sometimes those indirect effects are minuscule. But when they are large, they can be troublesome; That is what economists call "externalities." Externalities are one of the main reasons that lead governments to intervene in the economy.

When there are externalities, indirect effects are produced that affect the consumption and production opportunities of third parties, but the price of the product does not reflect those externalities. Therefore, private returns and costs are different from those assumed by society as a whole .

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You are thinking of buying a bond from Knight Corporation. You know that this bond is long term and you know that Knight’s busin
8_murik_8 [283]

Answer:

d. Both the longer term and the higher risk would tend to make the interest rate higher on the bond issued by Knight.

Explanation:

Both the longer term and the higher risk would tend to make the interest rate higher on the bond issued by Knight because this bond is risky and uncertain.

This means the company would not want to run at a loss

4 0
3 years ago
Read 2 more answers
Which of the following statements is false? a. A credit is a deposit to a checking account. b. A debit is a withdrawal from a ch
allsm [11]

Answer:

c. An overdraft is a fee your bank charges you for opening a checking account.

Explanation:

Checking account is a deposit account with a bank or any  financial institution that allows the owner of such account to make withdrawals and deposits. They are also known as demand accounts or transactional accounts. They are very liquid and allows for countless deposits and withdrawals and can be obtained  by using automated teller machines, checks and electronic debits, and a number of  other methods.

A checking account is unlike other bank accounts like less liquid savings or investments account it allows for countless withdrawals and unlimited deposits, and savings accounts sometimes limit both.

The statement that an overdraft is a fee that banks charges for opening a checking account is false.

Overdraft is a form of extension of credit from a finiancial institution and often granted when an account reaches zero. it allow such account holder to continue withdrawing money even though the account has no funds  or insufficient funds that would cater  for and cover the amount of the withdrawal. So it is not the fee that bank charges for opening a checking account, instead what checking account offers is overdraft protection in which if a checking account owner write a check or make a purchase than the funds in the checking account, the bank may cover the difference.

8 0
3 years ago
Read 2 more answers
Lillian Fok is president of Lakefront​ Manufacturing, a producer of bicycle tires. Fok makes 1 comma 000 tires per day with the
solniwko [45]

Answer:

Labor productivity= 2.35 tires per hour of work

Explanation:

Giving the following information:

Fok makes 1,000 tires per day with the following​ resources: ​

Labor: 425 hours per day ​at $12.50 per hour.

The labor productivity is calculated based on the number of units made divided by the amounts of hours required:

Labor productivity= 1,000/425= 2.35 tires per hour of work

8 0
3 years ago
Once a firm has diversified and established itself in several different businesses, then its main strategic alternatives include
RoseWind [281]

Answer:

E. Shifting from a multi-country to a global strategy.

Explanation:

  • The process of diversification allows the firms to reap the competitive advantages as the benefits of the skills and transfers, low costs economies of scope.  
  • Cross boundaries used by the powerful brands and collaboration in the creation of stronger and competitive capabilities.
  • A diversified firms thus look for a global strategy to spread its risks and establish its business and develop its main strategic alternatives.  
  • The diversified firms hence have ample market opportunities and thereby brain the scope of the business.
6 0
3 years ago
Potter Corporation has gained considerable market share in recent years for its​ specialty, low-volume, complex line of​ product
Oksana_A [137]

Answer:

Potter Corporation should turn to activity-based costing.

Explanation:

Potter Corporation should change to activity-based costing. Since Its present system seems to be deforming product costs, resulting in prices of specialty products that are below average and prices of simple products that are too high. This may lead Potter to push products that produce low profit margins.

7 0
3 years ago
Read 2 more answers
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