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3 years ago

If there are important external benefits associated with the consumption of a product:_______.

Business

1 answer:

pentagon [3]3 years ago

4 0

Answer:

C. the market demand curve understates the relative importance of the product and resources are therefore underallocated to its production.

Explanation:

Positive external benefits refer to third party positive side effects, above & beyond private marginal benefit to the concerned consumer.

Eg : Education - Its consumption not only affects the concerned person, but the positive trickle down to the people & society around.

Personal consumption decisions are based on : equalisation - of private marginal benefit (demand) curve & private marginal cost curve. However, goods having positive external benefits have real marginal benefit curve increased over private benefit curve, by the extent of extra marginal social benefit.

So, market demand (based on private marginal benefit) curve understates the importance of product, and resources are therefore underallocated to its production (due to undervaluation of demand).

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What is the six steps in the IHOP to go order correct order list

Afina-wow [57]

Answer:

HIOP is the correct answer for this question

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4 years ago

Old Main Co. has some expenses and revenue in Mexican Peso. If its expenses are more sensitive to exchange rate movements than r

notsponge [240]

Answer:

B. decreasing foreign expenses

Explanation:

Economic exposure is the risk derived from the variation in the foreign revenues and expenses of the firm due to exchange rate movements.

If the expenses are more sensitive to exchange rate movements than revenue, means that a depreciation of the Mexican Peso would cause the expenses to increase more than revenue,

That means that the expenses would increase more than the revenue affecting the financial situation of the firm.

Hence, to reduce the economic exposure, Old Main Co. should reduce its foreing expenses.

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4 years ago

A conceptual framework is an analytical tool with several variations and contexts. It can be applied in different categories of

Gemiola [76]

Incomplete question. I inferred you want to know if it is true or false.

Answer:

True

Explanation:

This term is often used in research by researchers to explain the reason for the hypotheses and conclusions made their work, etc. In other words, the conceptual framework paints a clearer/overall explanation of an idea.

For example, if an invention is made of a Car that uses water as fuel; such an invention must have a conceptual framework document explaining the idea behind that.

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3 years ago

Manuel Acala is a marketing analyst, but made only $28,000 last year because he was employed only part of the year. He paid $5,0

vovikov84 [41]

Answer:

$13000

Explanation:

There are two types of incomes; disposable income that is the income after paying income tax, and discretionary income that is the income after paying income taxes and necessities. Overall, the Manuel Acala made $28000; he paid $5000 in taxes.

Disposable income= $28000-$5000 = $23000

He spent $10000 on food

Discretionary income = $23000-$10000= $13000

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3 years ago

The total consumer surplus for good X can be calculated in all ways EXCEPT as:

Oliga [24]

Answer:

B. the area bounded by the demand curve for X and the two axes

Explanation:

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3 years ago