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3 years ago

Which of the following generate the type of externality previously described?

Business

1 answer:

otez555 [7]3 years ago

7 0

Answer:

Positive externality

Negative externality

positive externality

negative externality

Explanation:

A good has positive externality if the benefits to third parties not involved in production is greater than the cost. an example of an activity that generates positive externality is research and development. Due to the high cost of R & D, they are usually under-produced. Government can encourage the production of activities that generate positive externality by granting subsidies.

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

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Approximately 85% of the customers at hanson's furniture store purchase furniture using store credit. the store's average collec

aev [14]

With a Net 30 payment policy, but an average collection period of 75 days with customers, Hanson's furniture store, should either reduce their store credit option, and encourage approximately 45% of their store credit customers to pay upon receipt, or shorten their operating cycle.

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3 years ago

"Consider the following data: Cost of goods sold $70 Direct labor $20 Direct materials used $15 Cost of goods manufactured $80 W

vovikov84 [41]

Answer:

Schedule of cost of goods manufactured & Sold

Particulars Amount

Direct materials used $15

Direct labor $20

Factory overhead Applied $30

(150% of DL Cost)

Total manufacturing costs $65

Add: Beginning WIP $25

Total cost of work in process $90

Less: Ending WIP $10

Cost of goods manufactured $80

Particulars Amount

Cost of goods manufactured $80

Add: Beginning finished goods inventory $5

Cost of goods available for sale $85

Less: Ending finished goods inventory $15

Cost of goods sold $70

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3 years ago

Which of the following statements is correct?A. Wide variations in capital structures exist both between industries and among in

erik [133]

Answer: Wide variations in capital structures exist between industries and also between individual firms within industries and are influenced by unique firm factors including managerial attitudes.

Explanation:

Out of the options that are given in the question, the correct option is that wide variations in capital structures exist between industries and also between individual firms within industries and are influenced by unique firm factors including managerial attitudes.

All the other options are false. Debt-to-total-assets ratios varies much among different industries.

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3 years ago

Santiago Systems Income Statement For the Year Ended December 31, 20X2 Amount Percent Net sales $5,345,000 100.0% Less: Cost of

solmaris [256]

Answer:

1)Dividend per share = 1

2)Dividend yield = 5%

3)Dividend payout ratio = 0.39

Explanation:

As per the data given in the question,

Net sale = $5,345,000

Cost of goods sold = $3,474,250

Gross margin = $5,345,000 - $3,474,250 = $1,870,750

Operating expenses = $1,140,300

Operating income = $1,870,750 - $1,140,300 = $730,450

Interest expenses = $27,000

Income before taxes = $730,450 - $27,000 = $703,450

Income tax(40%) = $281,380

Net in come = $422,070

Preference of dividend = $40,000

Earnings available to common stockholders = $422,070 - $40,000 =$382,070

Common stock = $150,000

Earning per share = $382,070÷$150,000 = 2.55

Dividend to common stockholders = $150,000

Dividend per share = $150,000÷$150,000 = 1

Market price of common share = $20

Dividend yield = (Dividend per share×100÷market price of common share) = 5%

Dividend payout ratio = Dividend per share÷earning per share =1÷2.55 = 0.39

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3 years ago

An increase in income is always possible with out increasing expenses. O True False

vaieri [72.5K]

The answer is true because you don’t always have to increase your expenses .

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3 years ago