Answer:
A. for government to provide the good and then pay for its production through taxation.
Explanation:
Free Riding is an economic problem implying usage of 'non excludable' good, by people not contributing to pay for it.
Example : Roads, Bridges etc.
One most suitable solution to free rider problem is : Providing it through government and treating all prospective beneficiaries as unified consumers set , dividing the entire total cost equally between all of them - through mechanism of taxation
After implementing a solution to a given work-related problem, the manager should EVALUATE THE OUTCOME OF THE SOLUTION.
The evaluation of the chosen solution is very important, it is needed to determine whether the solution chosen effectively take care of the problem or not. The evaluation process examines the effectiveness of the solution. <span />
Answer:
A & C are correct
Explanation:
Payback period is a capital budgeting technique used to determine the number of years it would take a project cash inflows to fully recover the initial amount invested. Since it involves basic addition of subsequent expected cash inflows to determine at what point in time the balance changes from negative to positive ,regular payback period does not take into account the time value of money.
Additionally, payback period determination ignores future cashflows after the balance has changed from negative to positive. Due to this reason, it does not take into account the project's entire life.
Rosina should expect <u>"to realize a capital loss if she sold the bond at today's market price."</u>
A capital loss is the loss brought about when a capital resource, for example, a speculation or land, diminishes in esteem. This misfortune isn't understood until the point that the benefit is sold at a cost that is lower than the first price tag. A capital loss is basically the distinction between the price tag and the cost at which the advantage is sold, where the deal cost is lower than the price tag. For instance, if a financial specialist purchased a house for $250,000 and sold the house five years after the fact for $200,000, the speculator understands a capital loss of $50,000.
Answer:
Contribution margin per unit = $7.8
Contribution Margin Ratio = 60% or 0.6
Total contribution margin at 2250 units = $17550
Explanation:
The unit contribution is the difference in the unit selling price and unit variable cost for a product.
The unit contrbution margin for Red Hawk = 13 - 5.2 = $7.8 per unit
The contribution margin ratio simply represents the unit contribution margin as a percentage of selling price.
The contribution margin ratio = contribution margin per unit / selling price per unit
For Red Hawk CM Ratio = 7.8 / 13 = 0.6 or 60%
Total Contribution margin at 2250 units = 7.8 * 2250 = $17550
