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docker41 [41]
3 years ago
11

Where there is asymmetric information between buyers and sellers, Multiple Choice product shortages will occur at the equilibriu

m price. product surpluses will occur at the equilibrium price. markets can produce inefficient outcomes. markets will fail due to the over-allocation of resources.
Business
1 answer:
Talja [164]3 years ago
6 0

Answer:

markets can produce inefficient outcomes.

Explanation:

Asymmetric information is when one party to a transaction has more information than the other party. It could be the buyer or seller that has more information

For example, if a person wants to purchase health insurance, he might not disclose the full information about his health status to the insurer. This might lead to underestimation of costs.

Also, a seller might not reveal to the buyer than the item about to be purchased is faulty.

Asymmetric information leads to inefficient outcome inn the market

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__________ is the amount a business earns after deducting what it spends for salaries and other expenses.
Lana71 [14]

Answer:

profit

Explanation:

profit is a financial return or reward that an entrepreneur aims to achieve to reflect the risk it takes. Profit is also an important signal to other providers of finance to a business. Banks, suppliers and other lenders are more likely to provide finance to a business that can demonstrate that it makes a profit and that it can pay debts as they fall due.

4 0
3 years ago
Louis purchased $5,000 worth of stock three years ago and sold it today for $7,000. He received no dividends from this investmen
scZoUnD [109]

Answer:

9.33%

Explanation:

Calculation to determine his annualized real rate of return on this investment

Annualized real rate of return=[($7,000-$5,000/ ($5000*3) *100] -4%

Annualized real rate of return=13.33%-4%

Annualized real rate of return = 9.33%

Therefore his annualized real rate of return on this investment will be 9.33%

5 0
3 years ago
What criteria must normally be met for revenue to be recognized under accrual basis accounting?
Nezavi [6.7K]

The accrual accounting characteristic known as the revenue recognition principle states that revenues must be the  recorded on the income statement in the period in which they are realized and earned, not necessarily in the period in which cash is received.

The earned revenue represents the money that has been spent on goods or services that have been rendered. For the revenue-generating activity to be included in the revenue for the relevant accounting period, it must be finished or almost the finished. The matching principle also mandates that revenue and related costs must be reported in the same accounting period.

To learn more about accounting, click here.

brainly.com/question/5640110

#SPJ4

4 0
1 year ago
An investigator interested in regional differences in breastfeeding attitudes and practices conducts a national survey. The surv
Luba_88 [7]

Answer:

I’m so sorry I needed some points but good luck

Explanation:

6 0
4 years ago
Select all that apply. Select the items that describe what happens at the equilibrium price. Producers supply the exact goods th
malfutka [58]
Answers are: 
<span>Producers supply the exact goods that consumers buy.
Consumers have enough goods, at the given price
</span><span>Producers use their resources efficiently

At the equilibrium price, the quantity bought= quantity sold. Consumers have enough goods at the given price, meaning that there isn't anyone who wants to buy the good at that price but can't, and producers use their resources efficiently.

The whole economy does not waste resources, since this is the market-efficient outcome, and there aren't many shortages or surpluses for the same reason. </span>
5 0
4 years ago
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