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Ivahew [28]
3 years ago
9

Market failure implies that the market mechanism:_________.

Business
1 answer:
MaRussiya [10]3 years ago
8 0

Answer:

Leads the economy to the wrong mix of output

Explanation:

Market failure is the when there is an inefficient distribution of goods and services in the free market.

One of the types of market failure is externality

Externality is when the production or consumption activities of economic agents have effects on people not involved in the economic activity. Externality can either be positive or negative

A good has positive externality if the benefits to third parties not involved in production is greater than the cost. an example of an activity that generates positive externality is research and development. Due to the high cost of R & D, they are usually under-produced. Government can encourage the production of activities that generate positive externality by granting subsidies.

A good has negative externality if the costs to third parties not involved in production is greater than the benefits. an example of an activity that generates negative externality is pollution. Pollution can be generated at little or no cost, so they are usually overproduced. Government can discourage the production of activities that generate negative externality by taxation  

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When conducting qualitative analysis, you can use _______ to get basic information about your data. 
anzhelika [568]

The most useful hint in this question is the word 'qualitative'. This indicates that the answer does not have anything to do with numbers. Then, that would be quantitative, which is another classification.

From the choices given, only choice A does not have to do anything with numbers. By looking at the themes, you can already get a commonality or a signigicant difference in youtr gathered data.

5 0
3 years ago
Read 2 more answers
Bodin Company manufactures finger splints for kids who get tendonitis from playing video games. The firm had the following inven
irina1246 [14]

Explanation:

The computations are shown below:

1. For Prime cost

= Raw material used + Direct labor

where,

Raw material used is

= Beginning raw material inventory + raw material purchased - ending raw material inventory

= $134,000 + $191,000 - $124,000

= $201,000

And, the direct labor is $300,000

So, the prime cost is

= $201,000 + $300,000

= $501,000

2. For total manufacturing cost:

= Direct material used + direct labor cost + manufacturing overhead cos

= $201,000 + $300,000 + $300,000 × 60%

= $681,000

3. For cost of goods manufactured:

Cost of goods manufactured = Opening work in process + Manufacturing cost - ending work in process

= $233,000 + $681,000 - $251,000

= $663,000

4. For cost of goods sold

= Beginning finished goods + Cost of goods manufactured - ending finished goods

= $126,000 + $663,000 - $117,000

= $672,000

5. For balance in the manufacturing overhead account

= Actual manufacturing overhead - applied manufacturing overhead

= $170,000 - $180,000

= $10,000 credit balance i.e over applied

3 0
3 years ago
An effective price ceiling is imposed in a market. This leads to the development of an illegal black market for the product. How
horsena [70]

Answer:

The price on the black market tends to be higher.

Explanation:

When price ceilings are placed in legal markets, buyers are able to get goods and services at lower prices. But sellers may not be willing to sell unlimited supply of goods at the low price. This could lead to artificial scarcity, and formation of black markets.

The main aim of black markets is for suppliers to maximise profits, so a supplier is able to sell his goods at an amount above the price ceiling set in the legal market.

Also black markets are characterised by practices such as tax evasion, which are beneficial to the suppliers.

6 0
3 years ago
During 2012, Robby's Camera Shop had sales revenue of $170,000, of which $75,000 was on credit. At the start of 2012, Accounts R
klio [65]

Answer:

1) December 31, 2012, bad debt write off

Dr Bad debt expense 1,700

    Cr Accounts receivable 1,700

December 31, 2012

Dr Bad debt expense 1,125

    Cr Allowance for doubtful accounts 1,125

2) Bad debt expense must be recorded in the income statement and it reduces net income. Both transactions reduce net accounts receivable on the balance sheet.

3) It doesn't seem to be appropriate because just one bad account (J. Doe) was higher than 1.5%. A large % of accounts receivable is still outstanding (= $27,275 / $75,000 = 36.4%) and they should include approximately four months of credit sales. This means that unless the company issues a very long credit, a much larger percent is past due.

Explanation:

net accounts receivable January 1, 2012 = $15,100

credit sales 2012 = $75,000

collections on accounts receivable $60,000

net accounts receivable December 31 = $15,100 + $75,000 - $60,000 - $1,700 - $1,125 = $27,275

8 0
3 years ago
At December 31, the records of Nortech Corporation provided the following selected and incomplete data:Common stock (par $1; no
solmaris [256]

Answer:

The following balances have been worked out from the information given in question;

Explanation:

No. of Common stocks issued     $200,000/22         9,091

Paid in capital-Common Stocks               9,091*(22-1)  $90,909      

No. of Treasury Stock                                                         3,000

Treasury stock            3,000*20                                         $60,000      

EPS   =$147,750/(9,091 -3,000)                                          $24

Retained Earnings ($155,000+$147,750-$49,250)           $253,500

                                                 

4 0
3 years ago
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