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defon
2 years ago
6

Which of the following generate the type of externality previously described? Check all that apply. The city where you live has

granted a permit to put a movie theater in your neighborhood, causing traffic jams at night and on weekends. A microbiology lab has published its breakthrough in swine flu research. Your roommate Jacques has bought a bird that keeps you up at night with its chirping. Darnell has planted several trees in his backyard that increase the beauty of the neighborhood, especially during the fall foliage season.
Business
1 answer:
melisa1 [442]2 years ago
7 0

Answer:

Explanation:

There are two types of externality:

1. Postive externality

2. Negative externality

Postive externality is when the benefits of economic activities to third parties exceeds the costs. An example of an activity that generates positive externality is research.

Activities that generate positive externality are usually under produced in the economy. For this reason, the government usually gives subsidy to encourage its production.

Negative externality is when the cost of activities to third parties not involved in the activity is greater than its benefit. An example of an activity that generates negative externality is pollution. Activities that generate negative externality are usually over produced in the economy, so, the government imposes tax on such activities in order to reduce its production.

In the above question, the following activities generate positive externality:

1. A microbiology lab has published its breakthrough in swine flu research

2. Darnell has planted several trees in his backyard that increase the beauty of the neighborhood, especially during the fall foliage season.

In the above question, the following activities generate negative externality:

1. The city where you live has granted a permit to put a movie theater in your neighborhood, causing traffic jams at night and on weekends

2. Your roommate Jacques has bought a bird that keeps you up at night with its chirping

I hope my answer helps you

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Market size and growth of the total U.S. beer market was estimated to be around $106 billion. The total economic impact of the b
RUDIKE [14]

Answer:false

Explanation:

The current gdp of us is estimated to about $21427.1 billion.

So if beer market is estimated to be $106 billion, the percentage is ($106/$21427.1)*100

= 0.004947*100

=0.4947%

0.497% is not up to 2%

6 0
3 years ago
A normal profit is:______
katen-ka-za [31]

Answer:

b. revenues minus accounting and opportunity costs.

Explanation:

A normal profit occurs when the amount of profit generated by a company in a given period is equal to the amount of its costs, that is, in this situation the company's profit is sufficient to cover its costs and it manages to continue operating in a market in a way competitive, for this reason the normal profit

The opportunity cost refers to normal profit due to the fact that this is the amount that is equal to zero with respect to economic profit, which is what is necessary for the company to operate when considering the investment made.

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3 years ago
How can small business contribute to the country's economy
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Investing in stocks, maintaining prices and avoiding inflammation.
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2 years ago
Read 2 more answers
Connor, the owner of a start-up, has studied his competitor's offerings, the value delivered by his company's products, and the
DanielleElmas [232]

Answer:

A. never apologize for the price he quotes.

Explanation:

The prices that connor set was based on his research which included careful calculations of prices the competitors are selling at, the worth in value of his own product combined with the cost of providing that valued product. Hence, given what he considered before naming a price, he should never apologize for any price he quotes. Because, the prices he sets are a reflection of the profits he needs to make and also for sustainability of the business.

8 0
2 years ago
The owner of a bicycle repair shop forecasts revenues of $188,000 a year. Variable costs will be $57,000, and rental costs for t
Pachacha [2.7K]

Answer:

Adjusted accounting profit - $63,200

Cash inflow / Outflow - $63,200

Depreciation Tax shield - $63,200

Explanation:

Revenue - $188,000

Variable cost ($57,000)

Contribution                                             $131,000

Rental cost  ($37,000)

Depreciation (17,000)

                                                                  ($54,000)

PBIT                                                              77,000        

Income Tax (40%)                                        (30,800)

Net Income                                                   46,200

A) Adjusted Accounting profit

Add back non cash expenses (depreciation) = 46,200+$17000 =$63,200

B)Cash Inflow/Outflow

Revenue                                        $188,000

Variable cost                                   (57,000)

Rental cost                                       (37000)

Income Tax                                      (30,800)

                                                         $63,200

C Depreciation Tax Shield

Tax shield =40%*17,000= $6800

Cash income from operation (EBITDA*(1-tax rate) = 56,400

Add back $6,800 =                                                           6,800

                                                                                           $63,200

                                   

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3 years ago
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