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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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Hungry lunch has net income of $73,402, a price-earnings ratio of 13.7, and earnings per share of $.43. How many shares of stock

Degger [83]

Answer: The number of shares outstanding is approximately 170702.32 shares.

We have :

EPS $0.43

Net Income $73,402

The formula for computing EPS is

$EPS = \frac{Net Income}{Number of shares outstanding}$

Substituting the values from the question in the formula above we get,

$Number of shares outstanding = \frac{73402}{0.43}$

$Number of shares outstanding = 170702.3256$

6 0

3 years ago

Read 2 more answers

The title of the job you are seeking should be placed _____.

Varvara68 [4.7K]

In the cover letter you highlight the reasons you are the best person for the job and how you will benefit the company.
The title of the job you are seeking should be placed in the first paragraph of a cover letter. Job Title and Accomplishments is the most effective way to start out a cover letter.

8 0

3 years ago

Jason wants to open a checking account with a $100 deposit. Jason believes he will write 15 checks per month and use other ban

anastassius [24]

Answer:

Hillsboro Bank

Explanation:

Jason has 4 banks to choose from:

Hillsboro First National Trust South Sun Coast

15 checks $3 $8 $0 $7.50

8 ATM's $4 $12 $12 $12

no minimum $6 $7 $11 $2.50

total $13 $27 $23 $22

Jason should choose Hillsboro bank because his total monthly fees will be lower.

8 0

3 years ago

On January 1, 20Y3, The Simmons Group, Inc., purchased the assets of NWS Insurance Co. for $37,152,500, a price reflecting an $5

Triss [41]

Answer:

The Simmons Group, Inc.

a. December 31, 20Y9, the book value of Goodwill before impairment = $5,572,875

b. Effects on the accounts of the December 31, 20Y9 adjustment for the goodwill impairment:

1. Impairment loss of $3,901,012 will be accounted for in the Income Statement for the year, thus reducing the reported profits by $3,901,012.

2. Goodwill be reduced to $1,671,863 in the balance sheet by deducting the impairment loss of $3,901,012 from the book value before the impairment.

Explanation:

a) Data and Calculations:

Jan. 1, 20Y3, Purchase price of NWS Insurance Co. = $37,152,500

Goodwill on acquisition = $5,572,875

December 31, 20Y9, the book value of Goodwill before impairment = $5,572,875

Impaired value - $1,671,863

Impairment loss = $3,901,012 ($5,572,875 - $1,671,863)

b) The Goodwill impairment shows that the carrying amount, $1,671,863, is less than the fair value of $5,572,875. Goodwill is an intangible asset which Simmons Group acquired from NWS Insurance on January 1, 20Y3. It is annually tested for impairment by comparing the fair value with the carrying value.

6 0

3 years ago

When an organization selects a single, primary target market and focuses all its energies on providing a product to fit that mar

sammy [17]

Answer:

Concentrated Targeting Strategy

Explanation:

Concentrated Targeting Strategy refers to a situation in which an organization focus its marketing efforts on only a specific segment of the market. That is, only one marketing mix is developed.

Concentrated Targeting Strategy allows the producer focus on the needs and wants of a particular segment of the consumers/ population. The producer directs all it's efforts to the satisfaction of a segment of the consumers.

Concentrated Targeting Strategy could be disadvantageous if the demand of the focused segment of consumers is low. Low demand will affect the financial position of an organization.

5 0

3 years ago