A positive externality is when a good or service is produced and used in a way that benefits a party that is not directly involved in the market transaction.
<h3>
What are the reasons for the Market Failure?</h3>
Externalities, public goods, market regulation, and a lack of knowledge are all possible causes of market failure. Market failures can be resolved through government involvement, such as new legislation, taxes, tariffs, subsidies, or trade restrictions.
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Thus, providing free and reduced lunches to low-income students by the government is a situation of positive externality where no directly involved in the market transaction.
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Answer:
<u>Network </u>
Explanation:
A network type of organizational structure is characterized by a less hierarchical levels, with greater decentralization and more flexibility.
Such an organization is inter connected by informal social networks based upon the requirements of a task instead of a formal structure.
In this kind of organizational structure, reporting requirements ain't pre defined and it arises as per the need and as per the extent of coordination. It promotes direct communication and eliminates bureaucracy as decision making does not require approval from multiple levels.
In the given case, the company does not actually produce or market the bread indicates the existence of intra-company networks which perform those tasks.
Similarly, the fact that there are very few employees who are majorly top executives or of clerical level, indicates elimination of multiple levels of organizational hierarchy.
Thus, it represents a network organizational structure.
Answer:
Portfolio beta =0.7467
Explanation:
Weight of each asset = 100% / 3 = 33.33%
Portfolio beta = Respective beta * Respective weight
Portfolio beta = (1/3*0.91)+((1/3*1.33)+(1/3*0)
Portfolio beta = 0.746666666
Portfolio beta = 0.7467
Hence, the beta of the portfolio 0.7467.
Answer:
The statement that best describes the bid-ask spread is...
A. The difference between the price at which a dealer is willing to buy a security and the price at which a dealer is willing to sell it .
Explanation:
<em>The bid-ask spread is best explained as the difference between the bidding price and the asking price. </em>
<em>Let’s say that I’m looking to buy a security at the bidding price of $10 and the asking price is $10.50 if I it’s me that wants the security immediately, I'm going to have to pay the asking price not the bidding price, on the other hand if it’s the dealer who wants to sell instantly and immediately they're going to have to be paying the bidding price. The bid-ask spread of that basically is the 50 cent difference. </em>
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the correct answer is false. i took the test and true was wrong. so false is correct
