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Nat2105 [25]
3 years ago
8

consider in the market for fire extinguishers that there is an external benefit of $10 per extinguisher. What type of externalit

y exists; describe a government policy that would yield a socially efficient outcome?
Business
1 answer:
-Dominant- [34]3 years ago
3 0

Answer and Explanation:

To internalize the externality a government should provide a subsidy equivalent to the additional benefit or externality given by the product.

So for the external benefit of $10 received by the society, government should give a $10 subsidy to the buyers of fire extinguishers. This shifts the demand curve towards its right giving Optimum.

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Gestión publica es con gente normal pero gestión institucional es con gente de negocios
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Carla Heinz is a portfolio manager for Deutsche Bank. She is considering two alternative investments of EUR10,000,000. Either sh
astraxan [27]

Answer:

The euro return to investing directly in euros is 180 5% 10% 360   = ×  ÷   , so the euros available in 180 days is EUR10,000,000 × 1.05 = EUR10,500,000. Alternatively, the EUR10,000,000 can be converted into Swiss francs at the spot rate of EUR1.1960/CHF. The Swiss francs purchased would equal EUR10,000,000 / EUR1.1960/CHF = CHF8,361,204. This amount of Swiss francs can be invested to provide a 180 4% 8% 360   = ×  ÷   return over the next 180 days. Hence, interest plus principal on the Swiss francs is CHF8,361,204 × 1.04 = CHF8,695,652. If we sell this amount of Swiss francs forward for euros at the 180-day forward rate of EUR1.2024/CHF, we get a euro

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return of CHF8,695,652 ×EUR1.2024/CHF = EUR10,455,652. This is less than the return from investing directly in euros.If these were the actual market prices, you should expect investors to do covered interest arbitrages. Investors would borrow Swiss francs, which would tend to drive the CHF interest rate up; they would sell the Swiss francs for euros in the spot foreign exchange market, which would tend to lower the spot rate of EUR/CHF; they would deposit euros.

Explanation:

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2 years ago
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Answer:

A. Merit Pay - 2. Equity Theory

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C. Piece-Rate Systems 4. Goal-setting Theory: Individual-Focused

D. Recognition Awards 1. Expectancy Theory Instrumentality

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3 years ago
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Basically, an activity-based costing (ABC) system is focused on the cost drivers associated with the respective activities, which are responsible for cost to be incurred. The cost drivers are activities such as direct labor, purchase order, machine use etc.

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