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

Company purchased $60,000 of Stanton Company’s 12% bonds at 100 plus accrued interest of $2,400. On June 30, Pierce received its

ASHA 777 [7]

Answer:

d. $51,500

Explanation:

Proceed from sale of the bonds

face value x quote

50,000 x 103/100 = 51,500

The company will recognize a gain from the sale of 1,500 dollars as it sold the investment for 51,500 while it was valued at 50,000 in their books

5 0

3 years ago

Howrley-David, Inc., manufactures two models of motorcycles: the Fatboy and the Screamer. Both models are assembled in the same

Greeley [361]

Answer:

Cost per Unit Fatboy= $ 27800

Screamer Cost per unit = $3779.80

Explanation:

Howrley-David, Inc.

Fatboy Screamer Total

Units Assembled 990 1,980 2,970

Materials cost per unit $ 2,600 $ 3,600

Material Costs 2574000 7128000

Other costs:

Direct labor $1069200 2138400 $ 3,207,600

Indirect materials 534, 600

Other overhead 1,603,800

FoH 712800 1425600 2138400

Total Costs 2752,2000 7484000

No of units 990 1980

Cost per Unit 27800 3779.80 

The total costs have been added and then divided with the number of units to get the cost per unit.

Direct Labor Costs =Total Direct Labor Costs/ Total number of units* required number of units

DLC for Fatboy= $ 3,207,600 /2970 *990= $1069200

DLC for Screamer= $ 3,207,600 /2970 *1980= 2138400

FActory Overheads = Total Factory Costs/ Total Units ( Required Units)

FOH for Fatboy= 534, 600 +1,603,800/2970 * 990= 712800

FOH for Screamer = 534, 600 +1,603,800/2970 * 1980= 1425600

6 0

3 years ago

McGuire Company acquired 90 percent of Hogan Company on January 1, 2010, for $234,000 cash. This amount is reflective of Hogan's

anzhelika [568]

Answer:

D. $1,800 Decrease

Explanation:

book value Fair value adjustment

01 Jan 10,000 8,000 2,000

Depreciation -1000 -800 -200

31 Dec 9,000 7,200 1,800 Decrease

5 0

3 years ago

Lake Corporation reported the following amounts in its income statement: Sales revenue $ 440,000 Advertising expense 60,000 Inte

goldenfox [79]

Answer:

Lake's operating income is $120000

Explanation:

Operating income is the income generated by the operations of company less its operating cost. Another name that is used for operating income is Earnings before interest and tax (EBIT). The charges or income relating to non operating or financing activities is not included in the operating income and nor is the tax deduction included.

The formula for operating income = Sales - Cost of Sales - operating expenses.

The operating expenses here, are = Advertising + Salaries + Utilities

Thus, operating expenses = 60000 + 55000 + 25000 = $140000

The Operating Income = 440000 - 180000 - 140000 = $120000

3 0

3 years ago

Read 2 more answers

Dear Mr. Sanchez:

tiny-mole [99]

Answer and Explanation:

1. After discovering about the value of local group ethical leadership, year before. The students naturally experienced most of your work and gratefully asked for the chance for your existence to make a major impact on our next generation of leaders.

The first option is the better option as the next paragraph provides a meaning. The next paragraph starts with 'therefore' It appears to be relatable

2. Even before central message, it does not explain the reasons, and it has no reader advantages.

The meaning as a whole is fairly ambiguous and inconsistent. The reasoning isn't very powerful and there seems to be a lack of compassion.

3. Typically a claim or complaint response ends with a service provider 's expectation. The author must submit a reasonable request in this situation.

7 0

3 years ago