All categories

3 years ago

To correct for positive externalities, the government should:_________

Business

1 answer:

liberstina [14]3 years ago

3 0

Answer:

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.

You might be interested in

Jenkins Inc., prepared its financial statement for 2008 based on the information given here. The company had cash worth $1,234,

marishachu [46]

Answer:

$18,334

Explanation:

Given the following :

Cash worth = $1,234

Inventory worth = $13,480

Accounts receivable worth = $7,789

Net fixed asset = $42,331

Other assets = $1,822

Accounts payables = $9,558

Notes payables = $2,756

common stock = $22,000

Retained earnings = $14,008

Long term debt :

Total asset - current liability - stockholders equity

Total asset =current asset + net fixed asset + other asset

Current asset = cash worth + inventory worth + accounts receivables

Current asset = $(1234 + 13480 + 7789) = $22503

Total asset = $(22503 + 42331 + 1822) = $66656

Current liabilities = Accounts payables + notes payables

Current liabilities = $(9558 + 2756) = $12314

Stockholders equity = $(22,000 + 14,008) = $36,008

Long term debt :

Total asset - current liability - stockholders equity

$(66656 - 12314 - 36008) = $18,334

7 0

4 years ago

Which of the following would decrease aggregate demand? a) an improvement in consumer confidence b) a decrease in the foreign ex

Alex_Xolod [135]

Answer: Option B

Explanation: In simple words, aggregate demand refers to the total amount of goods and services that the consumers are willing to consume at a specific price and in a specified time.

A decrease in dollar value will result in less purchasing power for imports. This will result in less supply which will ultimately increase the price of the imported quantity, thus, resulting in decrease in aggregate demand.

8 0

3 years ago

During the 1990s, one of the dominant firms in the U.S. cigarette industry would raise prices once or twice a year by about 50 c

Veronika [31]

Answer:

This is an example of price leadership.

Explanation:

Price leadership is a type of practice where a firm, most likely a dominant one, sets the price and other firms follow it. It is commonly seen in an oligopoly market.

In an oligopoly market, there are a few firms, these firms are interdependent. A price change by one firm affects its rivals.

Price leadership is of different types.

Barometric
Collusive
Dominant

So when a dominant firm changes its price, the followers have to follow it if we they want to retain their market share.

8 0

3 years ago

Do the methods below use Cash Flows or Operating Income

KatRina [158]

Answer: c

Explanation:

8 0

3 years ago

One Device makes universal remote controls and expects to sell 500 units in January, 800 in February, 450 in March, 550 in April

Reil [10]

Answer and Explanation:

The preparation of the production budget and The total required production for the year is as follows

One Device

Production budget

For the first four months

Particulars Jan Feb Mar April Year

Expected

unit sales 500 units 800 units 450 units 550 units

Add:

Ending

inventory 160 units 90 units 110 units 120 units

($800 × 20%) ($450 × 20%) ($550 × 20%) ($600 × 20%)

Total

required units 660 units 890 units 560 units 670 units

Less:

Beginning

inventory 100 units 160 units 90 units 110 units

($500 × 20%) ($800 × 20%) ($450 × 20%) ($550 × 20%)

Required

production

units 560 units 730 units 470 units 560 units 2,320 units

7 0

4 years ago