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3 years ago

Classify the source of market failure in each case listed.

Business

1 answer:

Len [333]3 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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When the indirect method is used, if accounts receivable increases during the accounting period, the change in accounts receivab

liberstina [14]

The answer is that "the change in accounts receivable is subtracted from net income".

When the indirect method is used, the starting point is the net income and it is transformed to cash flows from operational actions by adding back losses and subtracting gains so that these quantities are removed.

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3 years ago

g Which of the following are the three factors used to determine a company's credit rating? Its current ratio, its debt-to-equit

NISA [10]

The three factors used to determine a company’s credit rating are its current ratio, its debt-to-equity ratio, and its interest coverage ratio.

Explanation:

A credit rating comes in the list of the company’s annual performance targets. It helps to decide the company’s current year progress.
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3 years ago

Identify whether each statement in the following table best illustrates the concept of consumers’ surplus, producers’ surplus, o

Blizzard [7]

Answer:

1. Neither ; 2. Consumer Surplus ; 3. Producer Surplus

Explanation:

Consumer Surplus is the difference between a good's price paid by consumer, & maximum price the consumer is willing to pay for the good.

Producer Surplus is the difference between a good's price received by a seller, & minimum price at which the seller is willing to sell the good.

1. Willing to pay $209 for watch, buyer willing to sell at $196, no trade as price ceiling at $190 : It illustrates neither concept as transaction has not actually occurred, so no price established.

2. Willing to pay $39 for sweater, purchased it for $32 : It illustrates 'Consumer Surplus' case = $7 , as it shows difference between maximum willingness to pay by buyer ($39) & the actual buy price ($32)

3. Willing to sell laptop at $190, sold it at $199 : It illustrates 'Producer Surplus' case = $9 , as it shows difference between minimum willingness to sell price ($190) & actual sale price ($199)

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4 years ago

In cell e5, enter a financial function to calculate the monthly payment. in cell e6, insert a financial function to calculate th

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The excel function for monthly payments is =PMT()

The excel function for cumulative total interest is =CUMIPMT()

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4 years ago

When will diversity affect the workplace?

DochEvi [55]

It already does affect the workplace.

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3 years ago

Read 2 more answers