Answer:
Both of these answers are correct.
Explanation:
Positive externality is when the benefits of economic activities to third parties exceeds its cost.
Activities that generate positive externality are
1. Education
2. Research and development
To encourage activities that have positive externality, government can subsidise such activities. Subsidies makes the activity cheaper and incentivise people to carry out such activities.
Market forces may lead to an underallocation of resources to producing the good. Therefore, the government might intervene in the allocation of the resources to increase efficiency.
I hope my answer helps you.
Answer:
The company could pay up to 866,965.89 dollars today to solve the current heat exchanger situation
Explanation:
We have to determinate the present value of 7 year annuity which increase at a rate of 7% when the cost of capital is 15% being the first quota 175,000 dollars
grow rate 0.07
required return 0.15
Cuota 175,000
n 7
PV = 866,965.89
The limitations of GDP. GDP is a useful indicator of a nation's economic performance, and it is the most commonly used measure of well-being. However, it has some important limitations, including: The exclusion of non-market transactions.
To find the margin of safety in dollars, subtract the breakeven sales from the budged or actual sales.
Current sales are 41,800 units
Break even point in units is 33,900
Cost per unit is $170
(33,900)($170) = $5,763,000
(41,800)($170) = $7,106,000
The margin of safety in dollars is:
$7,106,000 - $5,763,000 = $1,343,000
