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Airida [17]
2 years ago
13

Externalities and Public Goods - End of Chapter Problem

Business
1 answer:
Nuetrik [128]2 years ago
7 0

Answer:

LaShawn's neighbor mows his lawn during the night.

DEPENDING ON HOW OFTEN LASHAWN'S NEIGHBOR MOWS HIS LAWN, A PRIVATE BARGAINING MIGHT BE USEFUL. IF THIS HAPPENS ONCE A MONTH, THE NEED OF INTERVENTION IS NOT SIGNIFICANT. BUT IF THIS HAPPENS MORE OFTEN, PROBABLY THEN BOTH MEIGHBORS WILL NEED TO BARGAIN AN OPTIMAL SOLUTION.

Opening an Apple store in a mall causes  overall sales in the mall to increase by 10%.  

THIS IS A POSTIIVE EXTERNALITY, THEREFORE, ANY TYPE OF INTERVENTION WILL PROBABLY MAKE THE SITUATION WORSE.

The production of steel results in  pollution that affects millions of  residents in the surrounding area.

IN THIS CASE, YOU NEED GOVERNMENT INTEREVENTION. POLUTION IS SOMETHING THAT AFFECTS THE GEENRAL PUBLIC, THEREFORE, IT MUST BE ADDRESSED BY THE EPA. IN CASE THE EPA AND OTHER GOVERNMENT INSTITUTIONS DECIDE TO DO NOTHING, THEN YES, PRIVATE BARGAINING WILL PROBABLY BE NECESSARY.

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Direct materials for a company were $500,000; manufacturing overhead was $250,000; and direct labor was $770,000. Conversion cos
Keith_Richards [23]

Answer:

A) $1,020,000

Explanation:

Conversion cost = All the cost incurred to convert raw material into finished goods, this only includes direct labor cost and manufacturing cost.

Thus, here as for provided information,

Manufacturing overhead = $250,000

Direct Labor = $770,000

Thus, conversion cost = $250,000 + $770,000 = $1,020,000

Conversion cost is the cost of efforts made to convert raw material to finished goods, but it does not include raw material cost.

A) $1,020,000

8 0
3 years ago
Read 2 more answers
the averge woman makes 75 cents for every dollar a man makes in the workforce. this statisic would fall under which of the follo
photoshop1234 [79]
Men get treated better than women. Men are more superior. Womes Rights
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3 years ago
A donor provides a large cash contribution that is to be used for acquisition of a new building. Under FASB standards, how would
jarptica [38.1K]

Answer:

B. Investing activity.

Explanation:

Investing activity refers to payment for acquisition of assets like a new building. It is an investing activity because the asset is expected to generate returns in terms of savings in rent.

3 0
3 years ago
Honest Abe's is a chain of furniture retail stores. Integral Designs is a furniture maker and a supplier to Honest Abe's. Honest
Pachacha [2.7K]

Answer:

The discount rate is 12.46%

Explanation:

In this question, we use the Capital asset pricing model (CAPM).

The formula and computation of the discount rate is shown below:

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

= 3.5% + (1.12 × 8%)

= 3.5% + 8.96%

= 12.46%

Since we have to compute the discount rate for the project that involves the manufacturing of furniture, so we have to use the Integral designs beta instead of the Honest Abe because Integral design is a furniture maker

8 0
2 years ago
55.The manager of Bonzai's Boutique has approved Carla's application for credit. The maximum payment that has been approved is $
rosijanka [135]

Answer:

$1,916.2

Explanation:

A fix Payment for a specified period of time is called annuity. The discounting of these payment on a specified rate is known as present value of annuity. In this question the payment of $95 per month for 24 months at APR of 16% is an annuity.

Formula for Present value of annuity is as follow

PV of annuity = P x [ ( 1- ( 1+ r )^-n ) / r ]

Where P = Annual payment = $95

First, Calculate the effective rate

EAR = ( 1 + 16%/12 )^12 - 1 = 17.2%

r = rate of return = 17.2% annual = 17.2% / 12 = 1.44% per month

n = number of years = 24 months

Placing value in the Formula

PV of annuity = $95 x [ ( 1- ( 1+ 1.44% )^-24 ) / 1.44% ]

PV of Annuity = $1,916.2

8 0
2 years ago
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