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3 years ago

Economic efficiency in a free market occurs when

1 answer:

6 0

Answer: Economic efficiency in a free market occurs when C) the sum of consumer surplus and producer surplus is maximized.

Explanation: Economic efficiency happens when resources are distributed in a way that allows for the least amount of waste so that there is little inefficiency. When all items are maximized, there is little waste happening and therefor the economic has achieved economic efficiency.

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What was the result in the Lucy v. Zehmer case (referenced in the textbook) involving whether allegations of joking regarding th

iogann1982 [59]

Answer:

The Supreme Court ruled in favour of the Complainants, enforcing the contract.

Explanation:

The Lucy Vs Zehmer case was one of decision on if a contract was binding or not on the basis of the undisclosed intentions of the parties involved in the contract. Zehmer alleged that he had jokingly sold and transferred title to Lucy while drunk. However the court ruled that contract for the sale of land to Lucy was valid on the basis that the secret intentions of Zehmer was not known or disclosed in the sale of the land and only his actions count for the contract to be binding.

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3 years ago

Is the externality positive or negative? Explain. Identify the socially optimum output. Explain how you determined your answer.

tankabanditka [31]

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3 years ago

The Dells Cargo bank was rocked by scandal with the discovery of one million phony accounts created by employees to hit sales ta

77julia77 [94]

You’re answer would be B love!

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3 years ago

Assume Marigold Corp. deposits $90000 with First National Bank in an account earning interest at 4% per annum, compounded semi-a

erastova [34]

Answer:

a) $101354

Explanation:

To calculate the future balance of the interest-earning account use following formula

FV = PV x ( 1 + r )^n

Where

FV = Future value = Balance of Interest-earning account after 3 years = ?

PV = present value = Amounr deposited in the account = $90,000

r = Periodic interest rate = 4% x 6/12 = 2%

n = Numbers of periods = Numbers of years x Compounding periods per year = 3 years x 2 periods per year = 6 periods

Placing values in the formula

FV = $90,000 x ( 1 + 2% )^6

FV = $101,354

8 0

3 years ago

The Short-Line Railroad is considering a $100,000 investment in either of two companies. The cash flows are as follows: Year Ele

Alex Ar [27]

Answer:

a. 3 years and 3 years

b. either company can be selected

Explanation:

a. In the payback, we analyze how many years the invested amount is recovered. The computation is shown below:

= Initial investment ÷ Net cash flow

For Electric Co.

In year 0 = $100,000

In year 1 = $70,000

In year 2 = $15,000

In year 3 = $15,000

In year 4 to 10 = $10,000

If we sum the first 3 year cash inflows than it would be $100,000 which is equal to the initial investment

So, the payback period equal to

= $100,000 ÷ $100,000 = 3 years

In 3 years, the invested amount is recovered.

For Water Works

In year 0 = $100,000

In year 1 = $15,000

In year 2 = $15,000

In year 3 = $70,000

In year 4 to 10 = $10,000

If we sum the first 3 year cash inflows than it would be $100,000 which is equal to the initial investment

So, the payback period equal to

= $100,000 ÷ $100,000 = 3 years

In 3 years, the invested amount is recovered.

b. Since both the companies has same payback period so either company can be selected

8 0

3 years ago