One of the best ways to internalize the externality of market behavior is to satisfy the equilibrium the condition of Notes: MC = Marginal Cost of production MB = Marginal Benefit to consumer MSC = Marginal Social Cost of Production MSB = Marginal Social Benefit ATC = Average Total Cost of Production MR = Marginal Revenue P = Market Price of goods/services sold. O MC - MR-Price O MSC - MSB O MSC - Minimum ATC O MSB>MSC
Answers
One of the best ways to internalize the externality of market behavior is to satisfy the equilibrium the condition of MSC = MSB.
MSC refers to the marginal social cost of production while MSB stands for marginal social benefit. In a market, there may be an instance where the production and consumption of goods/services negatively or positively impact third parties who are not involved in the transaction. Such instances are called externalities.
The existence of externalities in a market causes market failure as the price of goods and services that doesn't take into consideration the externalities leads to misallocation of resources, and consequently, leads to a welfare loss to the society. One of the ways to deal with this market failure is to internalize the externality by satisfying the equilibrium condition of MSC = MSB.
Satisfying this equilibrium condition means that producers and consumers consider the cost and benefits that accrue to third parties when producing and consuming goods/services. If MSC > MSB, it means that social welfare will increase if production is reduced or the externality is mitigated. On the other hand, if MSB > MSC, it means that social welfare will increase if more goods are produced.
In summary, one of the best ways to internalize the externality of market behavior is to satisfy the equilibrium condition of MSC = MSB.
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Related Questions
which of the following commodities is a product of the primary or extractive industry
A. Cars
B. Gold
C. Hair Processing
D . Houses
Answers
Sometimes the government will step in when they feel the need to encourage competition in
a particular industry and to break up companies that have nearly complete control over a
particular market. What is it called when the government initiates action against companies
that appear to have too much power?
A.consumer protection
B.OSHA
C.monopolies
D.antitrust suits
Answers
grande company had credit sales of $32,000 in the current period. accounts receivable had a beginning balance of $7,000 and an ending balance of $8,600. compute its cash collections from its credit sales for the current period.
Answers
$56,000 worth of credit sales were made by Grande Co. during this time. Accounts Receivable had a starting amount of $13,000 and a closing balance of $15,800. Compute.
How are cash receipts from credit sales determined?The average collection period is determined by dividing the total yearly credit sales by the sum of the starting and ending receivables.
What amount does the balance sheet show as accounts receivable?Net Realisable Value
The amount of cash anticipated to be recovered from accounts receivable is expressed as its net realizable value. Based on past patterns and other pertinent data, losses from problematic accounts are foreseen and eliminated.
What is the credit sales equation?Credit sales are calculated as follows: Opening debtors - Opening debtors - Closing debtors + Receipts.
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zoe decides to invest for retirement, beginning with $5,500 this year. she plans to increase the amount she invests each year by 3.5% (each year she will invest 3.5% more than she invested the prior year). she expects her investments to earn 9.5% annually. after 25 years, how much money will zoe have?
Answers
Zoe plans to invest for retirement, starting with $5,500 this year. Each subsequent year, she will increase the amount she invests by 3.5% compared to the previous year. She expects her investments to earn 9.5% annually.
After 25 years, let's calculate how much money Zoe will have.
To find the total amount of money Zoe will have after 25 years, we can use the formula for compound interest:
A = P(1 + r/n)^(nt)
Where:
A = the final amount of money
P = the initial amount invested
r = the annual interest rate (as a decimal)
n = the number of times the interest is compounded per year
t = the number of years
In this case:
P = $5,500
r = 9.5% = 0.095 (as a decimal)
n = 1 (compounded annually)
t = 25
Let's substitute these values into the formula and solve for A:
A = 5500(1 + 0.095/1)^(1*25)
A = 5500(1 + 0.095)^25
A = 5500(1.095)^25
A ≈ $55,269.88
Therefore, after 25 years of investing, Zoe is expected to have approximately $55,269.88.
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Keri is making doll clothes for a holiday craft show. the wholesale cost of the materials for one outfit is $9.38. if she sells an outfit for $15, what is the percent of markup? round to the nearest percent.
Answers
The percent of markup is calculated by dividing the selling price by the cost of the materials:
Markup % = (Selling Price / Cost of Materials) x 100
Rounded to the nearest percent, the markup is 60%.
The percent of markup for Keri's doll clothes can be calculated by using the formula:
Markup Percent = [(Selling Price - Wholesale Cost) / Wholesale Cost] × 100
First, we need to find the difference between the selling price and the wholesale cost:
$15 - $9.38 = $5.62
Next, we need to divide this difference by the wholesale cost:
$5.62 / $9.38 = 0.599
Finally, we need to multiply this number by 100 to get the percent of markup:
0.599 × 100 = 59.9%
Rounding to the nearest percent, the markup percent for Keri's doll clothes is 60%.
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Name three jobs in insurance.
What do administrative support careers do? Name three tasks.
Answers
Answer:
Insurance Investigators. Insurance fraud is a huge problem.
Insurance Claim Adjusters. Adjusters assess the damage involved in an insurance claim, and extend an offer to the policyholder to cover their losses.
Actuaries.
Underwriters.
Loss Control Agents.
Insurance Agent or Broker.
Explanation:
jobs
what types of services are offered by 2022 altima’s available nissanconnect® services powered by siriusxm®?
Answers
The types of services offered by the 2022 car is known as Convenience, Safety and Security.
The car's nissan-connect is a special features which allows the driver or car-user to remotely access the vehicle functions from the mobile device or smart-watch.
Hence, the section of navigation, entertainment and security are remotely control through the device specifically produced for the car.
In conclusion, the types of services offered by the 2022 car is known as Convenience, Safety and Security.
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How important is money
Answers
Answer:
very important
Explanation:
money is a global income source for everyone. we all have different types but it is all still money. now say one country got rid of money and had people pay for stuff using other things. if china did that lots of different countries wouldn't be able to get stuff from there unless they had so much of that product they could just give it up.
How large a payment must this customer make on 4/20/12 to be considered on-time with their payment?
Answers
An on-time payment simply means a payment that's paid back at a particular agreed at a particular due date that has been agreed.
Your information is incomplete. Therefore, an overview will be given. It should be noted that an on-time payment is important for one to run business affectively.
In this case, to be considered on-time with their payment, the customer should pay the agreed amount. Late payments simply impact ones ability to run business and can lead to one incurring more interest.
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At a local grocery store, they sell a Visa card that has a prepaid amount on it. People can use this card anywhere, but it cannot be used for more than its prepaid value. Which type of card is this?
A.
a debit card
B.
a smart card
C.
a stored value card
D.
a retail credit card
Answers
The type of the card is a Retail Credit card. Hence the option (D) is the correct one.
What is the function of retail credit cards work?For retail credit cards, an image You can potentially obtain benefits at some retail establishments if you have a retail store credit card.
Decide if you want a card that restricts the retailers with which you may earn rewards or one that enables you to earn rewards for regular purchases. Benefits could consist of privileged access to funding, exclusive deals, discounts, and awards.
For instance, paying in whole for a motorcycle costing $10,000 would be excessive for a buyer.
Consumer will receive a $10,000 loan from retail credit institutions, which will be repaid with interest over a period of time in the form of monthly installments.
Hence the correct option is (D).
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______ Is a market in which a large number of suppliers compete with each other to satisfy the needs and wants of a large numbers of consumers at a competitive price.???
Answers
Answer : Monopolistic competition
Answer:
Monopolistic Competition
Explanation:
In a monopolistic competitive market, there are large numbers of sellers who do not sell identical products instead they sell differential products. They compete with each other at a competitive price. The products could be differentiated in many ways including quality, style, location and even brand name. Since they compete at a competitive price, if there is a substantial rise in the price of any of the products, the buyers could quickly shift from one product to another. The most crucial factor behind product differentiation is because of geographical factors. Under a monopolistic competitive market, the sellers do not have any influence over customer loyalty and limited control over the price.
Mr. Bartley i taking the theater club on a field trip to ee the muica wicked. The chool treaurer aked me bartley for the group total ticket cot. He wrote the following cot function for the chool treaure
Answers
The most suitable cost function for the school treasurer would be that Tickets cost $25 and each person must contribute $2 for the bus, when it is known that 52 people are going on the trip which means option E is the right answer.
Cost functions are the equations which help in determining the cost of any commodity for producing a required output value. It consists of four variables which are total fixed costs, variable cost, number of units, and total production cost.
The equation given by Mr. Bartley shows that the total cost was $25 and an additional amount of $2 was also asked from each student. Since there are 52 students, so the total collection will be equal to $52(25+2) which is equal to $1404.
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Refer to complete question below:
Mr. Bartley is taking the Theater Club on a field trip to see the musical Wicked. The school treasurer asked Mr. Bartley for the group's total ticket cost. He wrote the following cost function for the school treasurer:
Total Cost = 52(25+2)
Which of the following statements could describe this cost function? Select all that apply.
A = The school will buy 52 tickets for the musical. Tickets cost $25.00 for each student and $2.00 for each teacher.
B = Tickets cost $52.00 each, and there are 25 students and 2 teachers going on the field trip.
C = A total of 52 people, which includes 25 students and 2 teachers, will attend the field trip.
D = The bus fits 52 people, including 25 students and 2 teachers.
E = Tickets cost $25 and each person must contribute $2 for the bus. There are 52 people going on the trip.
Which choice is an example of a charge card?
A. American Express
B. VISA
C. Mastercard
D. Discover
Answers
Answer:
option a
Explanation:
how would recession effect the economic
Answers
Answer:
Recession cause standard monetary and fiscal effects.
Explanation:
Recession impact all kinds of business, large and small,due to tightening credit conditions, slower, demand, and general fear and uncertainty.
The state can issue Gidgits Galore a NPDES permit; it does not need to be issued by the federal government
true or false?
Answers
Answer:
True
The NPDES permit program, created in 1972 by the Clean Water Act (CWA), helps address water pollution by regulating point sources that discharge pollutants to waters of the United States. The permit provides two levels of control: technology-based limits and water quality-based limits (if technology-based limits are not sufficient to provide protection of the water body).Under the CWA, EPA authorizes the NPDES permit program to state, tribal, and territorial governments, enabling them to perform many of the permitting, administrative, and enforcement aspects of the NPDES program. In states authorized to implement CWA programs, EPA retains oversight responsibilities. Currently 47 states and one territory are authorized to implement the NPDES program.
Using your savings to buy something you think will increase in value is known as.
Answers
Using your savings to buy something you think will increase in value is known as investing.
Ways to invest savingsIf you have savings that you want to multiply, it is best to invest them in various assets that have been appreciated over time. Among the alternatives to investing, the following stand out:
Gold is a demanded good that has been appreciated. Also, gold can sell quickly if you need the money.Collectible and classic cars increase their value over time if they are in good condition and are design icons in the automobile industry.Art objects are in high demand depending on their originality, and antiquity. Their value will increase as the artist is more recognized.Learn more about savings and investments here:
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Port's 5 force model for service DOES NOT include?
Answers
Answer:
The Porter's 5 forces include :
1. Competition in the industry
2. Potential of new entrants into the industry
3. Power of suppliers
4. Power of customers
5. Threat of substitute products
Explanation:
Porter's 5 forces is used to analyse how profitable a firm would be.
1. Competition in the industry - the higher the competition, the lower the firm's profitability.
2. Potential of new entrants into the industry : the easier it is for new firms to enter the industry, the lower the firm's profitability.
3. Power of suppliers : the more powerful suppliers, the lower the firm's profitability
4. Power of customers : the more powerful customers, the lower the firm's profitability
5. Threat of substitute products : the more the threat of substitute products, the lower the firm's profitability
Please only answer if you can help!!
Bobby is building a home for Shyla that under the original contract is to be completed by June 3rd. Shyla found the plans for the home in a publication focusing on unique houses and is excited because it will be the only style of home in this area. Because he underestimated the time needed for special antique framing required for Shyla's house, Bobby tells Shyla that he needs to hire additional workers in order to have the home done by that time and that Shyla needs to pay him an extra $5,000. Shyla says that she will pay the extra $5,000. Bobby finishes the home and asks for his $5,000. Shyla refuses to pay. What will happen if Bobby sues? Which theory of contracts/consideration is applicable and then who will win in this scenario.
Answers
Shyla must pay Frank the extra $5,000 because she consented to do so and didn't object to Frank's miscalculation of time when she consented to give him $5,000.
Is an agreement a contract if consent to it was obtained by coercion?When agreement is gained by the exercise of undue influence, the agreement may be revoked at the sole discretion of the individual whose consent was coerced.
What is agreement when it is forced and the outcome of mistake?It is impossible to argue that consent was granted voluntarily if it was obtained under duress, coercion, fraud, misrepresentation, or error. The contract is voidable if there is a mistake in the cause or the factor that led to the mistake.
Is the contract valid when a party's consent is not freely given?When a contract is signed without the parties' express assent, it is deemed voidable. The legislation defines a voidable contract as one that is enforceable by law at the choice of one or more parties, but not at the discretion of the other parties.
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Speech and debate question Which of the following would not be considered a part of a good closing A leaving the audience thinking about something they have learned. B saying that’s it. C saying something interesting or D asking the audience to do something you know they will feel motivated to do
Answers
The option that would not be considered a part of a good closing is saying that’s it.
What are the types of speeches?The four types of speeches are made:
To informTo instructTo entertainTo persuadeA person may have a lot of purposes in mind when giving your presentation and the closing statement is very important.
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Answer:
B) saying "that’s it"
Explanation:
I just took the speech and debate final and got it correct.
Consider a second hand car market where three types of cars are being sold: High quality (H), medium quality (M) and low quality (L). Sellers value an H at $2000, an M at $1200 and an L at $800, whereas buyers value an H at $1800, an M at $1600 and an L at $1400. As discussed in the "Akerloff's Lemons Market", sellers are able to distinguish between different quality cars but buyers are not and a buyer believes that in this market 40% of the cars is an H, 30% of the cars is an M and 30% of the cars is an L. a) Determine which type of cars will be sold at the efficient allocation. b) Determine which type of cars will be sold at the market equilibrium.
Answers
Answer:
a) Determine which type of cars will be sold at the efficient allocation.
All cars would be sold in a Pareto efficient allocation.
In a Pareto efficient market, resources are all allocated in teh most efficient possible way. This is the reason why this is just a theoretical concept that does not necessarily apply in real life.
b) Determine which type of cars will be sold at the market equilibrium.
Since consumers are only willing to pay up to $1,620 for a used car, only medium quality and low quality cars will be sold. The price of high quality used cars is higher than the equilibrium price.
Explanation:
the most a buyer would be willing to pay for a used car is ($1,800 x 40%) + ($1,600 x 30%) + ($1,400 x 30%) = $720 + $480 + $420 = $1,620
DIFFERENT BETWEEN SMALL AND LARGE OFFICE
Answers
Answer:
size
Explanation:
size size size
To arrive at an economic decision, a decision-making grid may be used to evaluate.
Answers
A decision-making grid may be used to evaluate ALTERNATIVES to arrive at an economic decision.
This kind of decision-making grid can assess alternative choices of action. A decision-making grid is essentially a viable technique for identifying, gathering, and then evaluating alternatives when a need for a decision arises.
This is a crucial step in the economists' decision-making process. Economic research is vital since it helps us become better decision-makers.
Actually, making your own decision-making grid can help you, too, solve your problems! Look at the attached image for an example of making a decision while looking at it.
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Yeet TAKE IT ALL SEA URCHINS
Answers
Answer:
thanks i guess?
Explanation:
All of the following characterize both perfectly competitive and monopolistically competitive markets EXCEPT: Price is equal to average revenue. Price is equal to average revenue. A Individual firms produce output where marginal cost equals marginal revenue. Individual firms produce output where marginal cost equals marginal revenue. B Firms can affect the selling price of their product. Firms can affect the selling price of their product. C The market has a large number of firms. The market has a large number of firms. D Firms can easily enter or exit the market.
Answers
outline 2 advantages to H&H of using secondary market research
Answers
Explanation:
It provides quick information and factual background perspectives
It is less expensive and affordable
can someone help me with this business worksheet
Answers
Answer:
uhm heyyyy I can help
If you invest for a single period at an interest rate of r, your money will grow to ______ per dollar invested.
Answers
If you invest for a single period at an interest rate of r, your money will grow to (1 + r) per dollar invested.
How to determine the rate of growth of a single period investmentThe formula for calculating future value of an investment is:
FV = P (1 + r)^n
Where:
FV = Future value P = Present value R = interest rate N = number of yearsFor example, if you invest $100 in an account that earns 10% per annum. The future value is:
$100 X ( 1 + 0.1)
$100(1.1) = $110.
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withdrawn rs 1000 on a permanent basis out of capital.
Answers
Answer:
withdraw a/c...........Dr 1000
To cash a/c 1000
Explanation:
Why is it important to demonstrate a positive work attitude in the workplace?
O to be seen as trustworthy and reliable
O to be seen as coachable and flexible
O to be seen as willing to delegate tasks
O to be seen as easily persuadable
Answers
Answer:
the first one
Explanation:
if you aren't trustworthy you might not get as many opportunities in your workplace
In The Federalist paper number 10, James Madison expressed concern over the possibility that both majority and minority factions would have too much power over government, and he presented ways of minimizing that danger. The United States Constitution established a democratic government but also contained several provisions that limited majority rule. Throughout the next two centuries, the role of majority rule in the United States government and politics continued to change. Respond to all parts of the question:_______.
(a) Identify the part of the national government that was originally most closely tied to citizens and explain how it was tied to citizens.
(b) Explain two ways the United States Constitution limited majority rule.
(c) Choose two of the following twentieth-century developments and explain how each moved the United States from a less democratic system to a more democratic system. Primary elections The Seventeenth Amendment Expansion of suffrage