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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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2 years ago
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When a supplier is restricted to operating during certain hours, which in turn limits its quantity supplied, the elasticity of s
enyata [817]

Answer:

C. less than 1

Explanation:

Supply is elastic if producers can increase output without a rise in cost or a time delay which means Price elasticity of supply is more than 1.

Supply is inelastic if producers find it hard to change production in a given time period which means Price elasticity of supply is less than 1.

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2 years ago
Which of the following is the best way to measure who read the company's public relations message and what they thought about it
algol [13]

Answer:

a. Ask consumers for relevant feedback after the campaign

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3 years ago
Which statement regarding strategies is true?
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A sporting goods manufacturer budgets production of 48,000 pairs of ski boots in the first quarter and 39,000 pairs in the secon
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Answer:

$831,600

Explanation:

The budget must account for all of the production of the first quarter and 20% of the production of the second quarter, the number of boots considered in the budget is:

b= 48,000 +0.20*39,000\\b=55,800\ boots

Assuming that each boot uses exactly 2kg of raw material and that the company has 19,200 kg on hand, the amount of raw material still required is:

m = 2*55,800-19,200\\m=92,400\ kg

If the cost per kg is $9, then the budgeted materials purchases cost for the first quarter is:

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The budgeted materials purchases cost is $831,600.

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