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3 years ago

Explain external economics and external diseconomics

Business

2 answers:

Effectus [21]3 years ago

4 0

Answer:

If the social cost of an activity exceeds the costs relevant to the decision makers in the activity , there is an external diseconomy . If the benefits of an activity exceed its marginal cost , there is an external economy .

Explanation:

Thaats whaaat upp

poizon [28]3 years ago

4 0

Explanation:

If the social cost of an activity exceeds the costs relevant to the decision makers in the activity, there is an external diseconomy. If the benefits of an activity exceed its marginal cost, there is an external economy.

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The old Soviet Union devoted enormous resources exclusively to increasing its physical capital stock, and yet eventually the in

GrogVix [38]

Answer:

In the absence of technological innovation, massive capital investments yielded diminishing marginal returns.

Explanation:

The economy of the Soviet Union was a command economy where the government decided how resources would be allocated. The four factors of production are land, labor, capital and entrepreneurship. In a command economy, entrepreneurship is virtually nonexistent, so that leaves three factors: land, labor and capital.

The government allocated a lot of resources into increasing the capital factor, but capital factor will always yield diminishing marginal returns unless new technological innovations are developed. During many years, the Soviet Union was the technological leader of the world, but as time passed and with a complete absence of entrepreneurship, technological advances halted.

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3 years ago

Suppose a government finances its expansionary fiscal policy by borrowing from the public. Joseph is concerned that this will in

prisoha [69]

Answer:

D) crowding-out effect.

Explanation:

In crowding out effect, government borrowing reducing private investment by increasing the interest rate.

<em>Whats is the crowding effect? The crowding out effect is an economic theory arguing that rising public sector spending drives down or even eliminates private sector spending.</em>

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3 years ago

Dante borrowed to buy a truck for his business. He borrowed from his parents who charge him simple interest. He borrowed from a

GenaCL600 [577]

Answer:

This cannot be solved. There isn't a number at the beginning.

Explanation:

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3 years ago

Which investment type typically carries the least risk

iren [92.7K]

I think it would be the fixed income market. Hope this helps you.
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3 years ago

Read 2 more answers

The risk-free rate is 5.4 percent and the market risk premium is 5 percent. Assume that required returns are based on the CAPM.

Karo-lina-s [1.5K]

Answer:

11.419%

Explanation:

Given that,

Risk-free rate = 5.4

Market risk premium = 5

Portfolio = $1 million = $1,000,000

Amount invested in stock A = $218,000

Beta A = 0.5

Amount invested in stock B = $1,000,000 - $218,000

= $782,000

Remainder invested in stock B that has a beta = 1.4

Portfolio beta:

= [(Amount in A × Beta of A) + (Amount in B × Beta of B)] ÷ Total Amount

= [($218,000 × 0.5) + ($782,000 × 1.4)] ÷ $1,000,000

= ($109,000 + $1,094,800) ÷ $1,000,000

= 1.2038

Required return:

= Risk free rate + (Beta × Market risk premium)

= 5.4% + (1.2038 × 5%)

= 5.4% + 6.019%

= 11.419%

Therefore, the required return on this portfolio is 11.419%

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3 years ago

Explain external economics and external diseconomics​

Explain external economics and external diseconomics