All categories

3 years ago

When economists say that a good is non-rival in consumption, they mean that:____.

1 answer:

5 0

Answer: When economists say that a good is no -rival in consumption, More than one person can enjoy the good at the same time

A good is excludable if someone can be prevented from using it. A good is rival in consumption if one person's use reduces others' ability to use the same unit of the good. Markets work best for private goods, which are excludable and rival in consumption. Markets do not work well for other types of goods.

You might be interested in

Rossdale Co. stock currently sells for $73.09 per share and has a beta of 1.23. The market risk premium is 7.00 percent and the

vesna_86 [32]

Answer:

Explanation:

The cost of equity can be estimated using two (2) different models:

The Dividend Valuation Model
The capital asset pricing model (CAPM)

The Dividend Valuation Model(DVM) is a technique used to value the worth of an asset. According to this model, the value of an asset is the sum of the present values of the future cash flows would that arise from the asset discounted at the required rate of return.

The model is stated below as follows

P = D(1+g)/ke-g)

The capital asset pricing model (CAPM): relates the price of a share to the market risk or systematic risk. The systematic risk is that which affects all the all the economic agents, e.g inflation, interest rate e.t.c

This model is considered superior to DVM. Hence, we will use the CAPM

Using the CAPM , the expected return on a asset is given as follows:

E(r)= Rf +β(Rm-Rf)

E(r) =? , Rf- 2.86%, Rm-Rf - 7.00 β- 1.23

E(r) = 2.86% + 1.23× 7%

= 2.86% + 8.61%

= 11.47 %

Cost of equity= 11.47 %

3 0

3 years ago

December 31, Year 1, the Loudoun Corporation estimated that 3% of its credit sales of $112,500 would be uncollectible. Loudoun u

allochka39001 [22]

Answer:

A. NA = NA + NA NA -NA = NA NA NA

Explanation:

As Year 2 the customer paid Loudoun the $1,050,which was written off On April 4, Year 1.

Therefore, the following journal entries to record the transaction.

Accounts receivable debit $1,050

Allowance for doubtful accounts credit $1,050

To record reinstatement of accounts receivable.

Cash debit $1,050

Accounts receivable credit $1,050

As one asset account is increase and another asset account is decreased.

7 0

3 years ago

The largest proportion of federal revenues comes from

NemiM [27]

The largest proportion of federal revenues comes from C. Personal income taxes.

6 0

3 years ago

Currently the U.S. Olympic Committee (USOC) pays Olympic athletes $25,000 for each gold medal, $15,000 for a silver medal, and $

Mkey [24]

Answer:

Option A

Explanation:

In simple words, Valence is individuals mental attitude towards result in second order. In this situation, the consequence of the first requirement is title earning and the consequence of that same second order is really the monetary support the competitors receive from either the USOC. Motivational Force (MF) = Survival rate * Instrumentality * Valence as according to Vroom's expectation principle.

7 0

3 years ago

A Texas household receives a Social Security check for $1500, which it uses to purchase a $40 pair of shoes made in Thailand by

rewona [7]

Answer:

Shoes from the Thai and korean firm is part of imports

Imports=40+1240=1280

Domestic consumption=220

Security check is part of government spending=1500

GDP=1500+220-1280=440

6 0

3 years ago