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2 years ago

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

Business

1 answer:

pentagon [3]2 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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If romeo wants to encourage more innovation among his employees, he should __________.

almond37 [142]

Romeo could do several things to encourage innovation for example by showing inventions created by other departments of his enterprise or by people in other companies either having the actual item or showing a video of it, and also by rewarding those who come up with new innovations with prizes for example. Of course, innovative ideas or better ways of doing things would also be encouraged.

8 0

3 years ago

Rachel Robinson owns a small retail store in Cairo, Georgia. The following summary information regarding expectations for the mo

Andrei [34K]

Answer:

Check the explanation

Explanation:

January

Beginning Cash Balance $1,000

Add: Collection:

December Sale ($5,000*10%) $500

January Cash Sale $6,000

January Credit Sale ($4,000*90%) $3,600

Total Cash Available a $11,100

Cash payment to suppliers b $24,000

Cash deficit before financing a-b $-12,900

Add: Borrowing (Using permutation-comb.) $14,040

Less: Interest Payment $-140

$14,040*12%*1/12

Ending Cash Balance $1,000

3 0

3 years ago

DeWitt Industries has adopted the following production budget for the first 4 months of 2017. Month Units Month Units January 10

brilliants [131]

Answer:

DeWitt Industries

Materials Purchase Budget for the first quarter:

January February March

Ending inventory 1,648 1,038 824

Production

requirements 31,320 24,720 15,570

Beginning inventory 9,500 1,648 1,038

Purchases (pounds) 21,820 23,072 14,532

Explanation:

a) Data and Calculations:

Production Budget

Month Units

January 10,440

February 8,240

March 5,190

April 4,120

January February March April

Production Units 10,440 8,240 5,190 4,120

Production

requirements 31,320 24,720 15,570 12,360

Materials Purchase Budget

January February March April

Ending inventory 1,648 1,038 824

Production

requirements 31,320 24,720 15,570 12,360

Beginning inventory 9,500 1,648 1,038 824

Purchases (pounds) 21,820 23,072 14,532 11,536

4 0

3 years ago

Suppose the market for hamburgers is unregulated. that is, hamburger prices are free to adjust based on the forces of supply and

vredina [299]

Answer: Lower

Explanation: A shortage occurs when there are less available in the market. When the current price is less than the equilibrium price, the demand for the good is greater than the supply for the good. When demand is more than supply, the buyers are unable to get the goods they want. Thus, there is a shortage in the market.

Thus, if a shortage exists in the hamburger market, then the current price must be <em>lower </em>than the equilibrium price.

3 0

3 years ago

Blanton Corporation purchased 35% of the outstanding shares of common stock of Worton Corporation as a long-term investment. Sub

lilavasa [31]

Answer:

(A) debit Cash; credit Dividend Revenue

Explanation:

As Blanton Corporation has 35% investment in Worton Corporation, the dividend received from Worton Corporation will be recorded as Dividend Income / revenue. Cash received in the form of dividend will be debited to the cash account. Dividend is the income on the investment so it will not effect the original investment balance.

7 0

3 years ago