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3 years ago

What is an externality? how do externalities relate to socially optimal quantity?

1 answer:

7 0

An externality in business or economics is where an industrial activity has an unexpected side effect which does not figure in the cost of the goods and services involved. For example, I worked many years at a large mine. Just the existence of the mine there meant it was a no-hunting area so a side effect was that the moose used it as a refuge during hunting season which as a side effect was beneficial to the moose (and deer). Another example is that we used to crush mine rock for the haulroads for winter traction. As a result, it was found that the fines from this were concentrated with copper values so were put in the mill for processing-an unexpected outcome.

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A zero-coupon bond has a yield to maturity of 11% and a par value of $1,000. If the bond matures in 27 years, the bond should se

stepan [7]

Answer:

The bond should sell for a price of $59.74 today.

Explanation:

Zero Coupon Bond is a bond which does not offer any interest payment but it is issued at deep discount amount from the face value of the bond.

Price of Zero Coupon Bond = $\frac{F}{( 1 + r )^t}$

F = Face / Par Value of Bond = $1,000

r = rate of interest = 11%

n = number of years = 27 years

Price of Bond = $\frac{1000}{( 1 + 0.11)^27}$

Price of Bond = $59.74

As Zero coupon bond does not offer any discount so, it is valued much below the par value.

5 0

3 years ago

Your store sells four varieties of 20 oz. sodas costing $1.25, $1.45, $1.10 and 1

-Dominant- [34]

The mean is the average.

Add the 4 prices together and then divide by 4.

1.25 + 1.45 + 1.10 + 1.32 = $5.12

5.12 / 4 = 1.28

The mean price is $1.28

4 0

2 years ago

Catarina, the founder of Platter Place, believes in employee empowerment, so as soon as she began hiring managers, she made subo

garik1379 [7]

Answer: Option A

Explanation:

As the founder of the Platter place believes in employee empowerment it is important for the founder to identify the reason for less efficiency and results. The best option that the HR manager and she could take are use the feedback given by the subordinates to find ways for employee development.

The identity of the feedback of the manager should not be opened up to the manager as it would create decrease in performance ratings of the subordinates and also conflicts arise between the employees.

8 0

4 years ago

Meadow is getting ready to attend college next year. She's thinking about ways to pay for it. Which of these is the best first s

Phoenix [80]

Answer:

its b

Explanation:

4 0

3 years ago

Assume the following information:Selling price per unit $200Contribution margin ratio 50%Total fixed costs $275,000How many unit

kkurt [141]

Answer:

Level of sales (dollars) to earn profit of $50,000

= Fixed cost + desired profit

Contribution margin ratio

= $275,000 + $50,000

0.5

= $650,000

Number of units to earn profit of $50,000

= Level of sales

Selling price

= $650,000

$200

= 3,250 units

The correct answer is A

Explanation:

First and foremost, the level of sales (dollars) to earn $50,000 profit is calculated, which is the ratio of fixed cost and desired profit to contribution margin ratio. Then, we will calculate the number of units to be sold in order to earn $50,000 profit by dividing the level of sales by selling price.

7 0

3 years ago