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Marta_Voda [28]
2 years ago
6

Classify the source of market failure in each case listed.

Business
1 answer:
Len [333]2 years ago
6 0

Answer:

Market Power

Externality

Explanation:

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. Taxation increases the cost of production and therefore discourages overproduction. Tax levied on externality is known as Pigouvian tax.

Government can regulate the amount of externality produced by placing an upper limit on the amount of negative externality permissible

Coase theorem has been proposed as a solution to externality. According to this theory, when there are conflicting property rights, bargaining between parties involved can lead to an efficient outcome only if the bargaining cost is low

The utility company is a monopoly

A monopoly is when there is only one firm operating in an industry. there are usually high barriers to entry of firms. the demand curve is downward sloping. it sets the price for its goods and services.

An example of a monopoly is a utility company

A natural monopoly occurs due to the high start-up costs or a large economies of scale.

Natural monopolies are usually the only company providing a service in a particular region  

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Which of the following accounts would not be included in the Acquisition and Payment for Long-Lived Assets Cycle? a. Revenue. b.
velikii [3]

Answer:

The correct answer is A

Explanation:

Acquisition and Payment Cycle, also called as the PPP cycle for which the payments, purchases and payables, is mainly comprise of the two classes of the transaction. This cycle is regarding the payables and to pay off the payables with cash.

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2 years ago
Rediger Incorporated a manufacturing Corporation, has provided the following data for the month of June. The balance in the Work
saveliy_v [14]

Answer:

cost of goods manufactured= $161,800

Explanation:

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cost of goods manufactured= $161,800

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These types of damages are called “Compensatory damages”.

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