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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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A point on the production possibilities curve represents a combination of goods that is

Elodia [21]

Answer:

The correct answer is: feasible and efficient.

Explanation:

The production possibility curve or frontier shows the different bundles or combinations of two goods that be produced using the given resources and state of technology.

All the points on the production possibilities curve represent the combinations that are feasible and efficient.

The points below the curve show the points that are feasible but inefficient.

The points above the curve show the points that cannot be attained using the given level or resources and technology.

6 0

3 years ago

If you start investing a little money now you will most likely have a lot more mone than those who start investing later on in l

Afina-wow [57]

True, usually the earlier you invest the more money you will get later down the road.

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3 years ago

Read 2 more answers

g Given the information below: ASSETS LIABILITIES Cash and cash equivalents $10,000 Current debts for the year $15,000 Other liq

artcher [175]

Answer:

The solvency ratio is closest to: B. 33%.

Explanation:

<em>The solvency ratio = After tax Net Operating Income ÷ Total Debt</em>

Thus,

The solvency ratio = $75,000 ÷ ($15,000 + $200,000)

= 35.88%

Therefore this is closest to B. 33%.

6 0

3 years ago

I the united states what the youngest you can get a payng job not soemthing big like train conductoring but like at a little sho

gulaghasi [49]

It depends on the state. I think the youngest is 13 years old. But you have to work with high supervision.

4 0

3 years ago

The BVM Corp., construction company, purchased a used hybrid electric pickup truck for 30,000 and used MACRS depreciation in the

Alina [70]

Answer:

The BVM Corp.

The After-tax Rate of Return for the truck = After-Tax Income/Investment in Truck x 100

= $10,200/$30,000 x 100 = 34%

Explanation:

a) Calculations:

Current Value of the Truck =

Sale of Truck = $9,000

Savings from Truck = $38,000 ($9,500 x 4)

Total $47,000

Investment increase = $17,000 ($47,000 - 30,000)

Combined Tax = $6,800 (40% x $17,000)

After Tax Income = $10,200 ($17,000 - 6,800)

b) MACRS means the modified accelerated cost recovery system. It is an allowance by the IRS for faster depreciation in the first years of an asset's life and the depreciation slows later on in order to allow a business to recover the cost basis of certain assets that deteriorate over time.

c) Rate of return (ROR) is the percentage increase or decrease of an investment (truck) over a set period of time (4 years), which is calculated by taking the difference between the current (or expected) value ($47,000) and original value ($30,000), dividing by the original value, and then this is multiplied by 100.

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3 years ago