1answer.
Ask question
Login Signup
Ask question
All categories
  • English
  • Mathematics
  • Social Studies
  • Business
  • History
  • Health
  • Geography
  • Biology
  • Physics
  • Chemistry
  • Computers and Technology
  • Arts
  • World Languages
  • Spanish
  • French
  • German
  • Advanced Placement (AP)
  • SAT
  • Medicine
  • Law
  • Engineering
Lelechka [254]
3 years ago
8

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).

You might be interested in
Assume the market for cell phones is an oligopoly. Further assume that cell phone consumption and production generate no negativ
Svetllana [295]

Answer:

D. This agreement is not in the best interest of society, because there will be less competition and the price of cell phones will be significantly below marginal cost.

Explanation:

If the market for cell phones is an oligopoly market(Oligopoly market is  a market situation where few firms are dominating the market), and the consumption and production of cell phone generate no negative externalizes and the major companies desired to collude and charge a single price for their product then this agreement is not in the best interest of society, because there will be less competition and the price of cell phones will be significantly below marginal cost.

3 0
4 years ago
A professional office center is purchased for $475,000. The land value is 20% of the total acquisition cost. What is the annual
Vika [28.1K]

Answer:

$9,744

Explanation:

In the case of the annual  IRS depreciation deduction, the time period for each category assets are different. Like for commercial real estate, the time period is 39 years, for residential real estate, it would be 27.5 years.

The computation is shown below:

= (Purchase value of professional office center × remaining percentage) ÷ (applicable time period)

= ($475,000 × 80%) ÷ (39 years)

= ($380,000) ÷ (39 years)

= $9,744

3 0
3 years ago
18. Acidic foods, such as tomatoes or wine, are important in a braise to
Ksivusya [100]

A. thicken the sauce.

Acidic foods, such as tomatoes or wine, are important in a braise to thicken the sauce.

5 0
4 years ago
Read 2 more answers
The Safe-T Airbag Company manufactures airbags that are used in automobiles. Fly Motor Company manufactures automobiles in which
melamori03 [73]

Answer:

(A)Requirements Contract

Explanation:

A requirements contract is defined as a contract in which one party agrees to supply as much good/service as desired by the other party. In exchange, the other party implicitly promises that it will obtain its goods or services exclusively from the first party.

Since Fly Motor Company agrees to purchase all the airbags it will need from Safe-T. Airbag company, the requirement of exclusive purchase is satisfied.

6 0
4 years ago
Yall know candice you guy like wendys
Grace [21]

Answer:

Y'all know we laugh at your slogan "fresh, never frozen" right? ... It's a bit late, but I feel like getting a burger from the place, read the drama guy's comments.

Explanation:

5 0
3 years ago
Read 2 more answers
Other questions:
  • From net earnings of $740 per month, Lisa Jones must spend $200 for her portion of the rent on an apartment she shares with two
    14·1 answer
  • Discuss the reasons due to which cash book and passbook balances may not match. Is there a method to address the issues related
    12·1 answer
  • Producer surplus is A. the market price multiplied by the number of units sold by a firm. B. the difference between the highest
    10·1 answer
  • John sat down with the project sponsor to gather information needed before drawing up the project plan. He knew the budget, the
    14·2 answers
  • On Saturday morning, you rank your choices for activities, from most preferred to least preferred, in the following order: go to
    7·1 answer
  • New-Tech Corporation borrowed $20,000 from the bank on March 1, 2011. The note carried a 9% annual interest rate and a 1-year te
    8·1 answer
  • 71. When making decisions that are ethical under either profit maximization or corporate citizenship theories, a business should
    12·2 answers
  • A machine makes three different components used in a gyroscope. Call these components A, B, and C. The following repeating sched
    15·1 answer
  • Acellus: into to accounting ?
    14·2 answers
  • An ad for ford did not advertise any models, but instead described the first 100 years of ford history. this ad is an example of
    15·1 answer
Add answer
Login
Not registered? Fast signup
Signup
Login Signup
Ask question!