According to the Coase theorem, private parties can solve the problem of externalities if a. the cost of bargaining is small. b. the initial distribution of legal rights favors the person being adversely affected by the externality. c. the number of parties involved is sufficiently large. d. All of the above are correct.

Answers

Answer 1

Answer:

the cost of bargaining is small.

Explanation:

A good has externality if other economic agents that are not involved in either production or consumption are affected by economic activities

types of externalities

A good has positive externality if the benefits to third parties not involved in production is greater than the cost. an example of an activity that generates positive externality is research and development. Due to the high cost of R & D, they are usually under-produced. Government can encourage the production of activities that generate positive externality by granting subsidies.

A good has negative externality if the costs to third parties not involved in production is greater than the benefits. an example of an activity that generates negative externality is pollution. Pollution can be generated at little or no cost, so they are usually overproduced. Government can discourage the production of activities that generate negative externality by taxation. Taxation increases the cost of production and therefore discourages overproduction. Tax levied on externality is known as Pigouvian tax.

Coase theorem has been proposed as a solution to externality. According to this theory, when there are conflicting property rights, bargaining between parties involved can lead to an efficient outcome only if the bargaining cost is low


Related Questions

Organizations can use common core security principles recommended as industry best practices when developing policies, standards, baselines, procedures, and guidelines. Which principle states that policy and standards library documents should be written to consider everyone affected, including technical, administrative, organizational, operational, commercial, educational, and legal personnel

Answers

Answer:

Multidisciplinary principle

Explanation:

In simple words, multidisciplinary approach refers to the framework for business management under which the administration makes rules and procedures to operate in such a way that every individual at stake will be equally impacted from them.

This is a modern technique for management and avoids every kind of bias like gender, race etc.

Which phrase best completes the diagram?

A) Unlimited liability
B) Few employees
C) Complex regulations
D( Multiple owners

Answers

Answer:

D) Multiple owners

Explanation:

if it's a partnership there's more than one owner and if it's a corporation, controlled by shareholder"S" then i don't know, they'd both have multiple owners in common??

Multiple owners best complete the diagram. The correct option is D.

How is ownership divided in a partnership?

Profits, liabilities, and management responsibilities are assumed to be distributed equally among partners in general partnerships. If you choose an unequal distribution, the partnership agreement needs to specify the percentages that were given to each partner.

A corporation is a type of business organization that is owned by shareholders, who own a portion of the company through the purchase of stocks or shares. Because a corporation is owned by multiple shareholders, it is a form of business that is considered to be separate from its owners, or shareholders, in terms of legal liability and management.

This means that the corporation can enter into contracts, own assets, and be sued or sue others in its own name, rather than in the name of its individual shareholders. The shareholders of a corporation elect a board of directors, who are responsible for making decisions about the management and direction of the company.

Thus, the ideal selection is option D.

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Monetary Policy in Flosserland In Flosserland, the Department of Finance is responsible for monetary policy. Flosserland has had an inflation rate of 25% for many years.

Refer to Monetary Policy in Flosserland. Suppose that the Flosserland Department of Finance has run a public relations campaign claiming it will reduce inflation to 12.5% but it actually raises inflation to 30%. Suppose that the public had expected that the Department of Finance would reduce inflation but only to 22%. Then

A. unemployment falls, but it would have fallen less if people had been expecting 25% inflation.
B. unemployment rises, but it would have risen less if people had been expecting 12.5% inflation.
C. unemployment falls, but it would have fallen less if people had been expecting 12.5% inflation.
D. unemployment rises, but it would have risen less if people had been expecting 25% inflation.

Answers

Answer:

A. unemployment falls, but it would have fallen less if people had been expecting 25% inflation.

Explanation:

Due to the Flosserland Department of Finance it decreased the inflation to the 12.5%. In the case when the inflation is too high so it would develop the high unemployment but when the FDE plans to decreased it to 12.5% so only 22% would be decreased

Now when the inflation fall to 12.5% so it rise the unemployment as people predicted the inflation to be 25% but if the inflation is decline to 12.5% so the unemployment would also be decline

Therefore the option a is correct

What would you pay for a stock expected to pay a $2.50 dividend in one year if the expected dividend growth rate is zero and you require a 10% return on your investment?

Answers

Answer:

$25

Explanation:

according to the constant dividend growth model

price = d1 / (r - g)

d1 = next dividend to be paid

r = cost of equity

g = growth rate

$2.5 / (0.1 - 0) = $25

The government in Chile recently informed Clint Travis' company that his retail grocery chain in Chile would have to be gradually turned over to the people of Chile by the year 2050. Additionally, starting next year fifty percent of the board of directors of the Chilean operation of the company must be Chileans. Which of the following political risk actions is Mr. Travis' company facing in Chile?
A. Confiscation
B. Expropriation
C. Domestication
D. Patronization
E. Socialization

Answers

Answer:

Option C

Explanation:

In simple words, Domestication happens when host nations gradually shift foreign capital to indigenous administration as well as possession through with a succession of governmental decrees that mandate local ownership and increasing national participation in administration.

Hence, from the above we can conclude that the correct option is C.

Which part of an insurance application will contain information regarding the cause of death of the applicant's deceased relative

Answers

Answer:

Medical Information

Explanation:

Medical Information of the application includes certain information on the  insured's prospective medical background, his or her present health conditions, any kind of visits to the medical in the recent years, the medical status of the living relatives, and also causes of death of the deceased relatives.

The medical information are used by the insurance companies to underwrite the policies.

________ refers to searching for information that is not immediately evident and sorting through that information to interpret what is important.
A) Competitive skimming
B) Data classification
C) Environmental scanning
D) Knowledge browsing
E) Information foraging

Answers

Answer:

C) Environmental scanning

Explanation:

Environmental scanning is a management strategy that focuses on systematically acquiring informations about occasions, trends, events or patterns through surveys and analysis of these information in an organisation's external and internal environment. The informations acquired through environmental scanning is then used by the executive management in strategically planning the organisation's future and exploitation of available opportunities for the success of the organization.

The internal environmental scanning offers an organization strength and weakness while the external environmental scanning provides information about opportunities and threats.

Generally, the external environmental scanning gives an overview of the opportunities in the market as well as potential threats to an organization.

Hence, the search for an information that isn't immediately evident and sorting through or analyzing that information to interpret what is important to an organization is generally referred to as environmental scanning.

Accounts receivable f. The right to receive cash in the future from customers for goods sold or for services performed. 2. Other receivables e. A miscellaneous category that includes any other type of receivable where there is a right to receive cash in the future. 3 Debtor b. The party who receives a receivable and will collect cash in the future. 4. Notes receivable c. A written promise to pay a specified amount of money at a particular future date. 5. Maturity date d. The date when the note receivable is due. 6. Creditor

Answers

Answer:

1. Account receivable.

2. Other receivables.

4. Notes receivable.

5. Maturity date.

Explanation:

1. Account receivable: the right to receive cash in the future from customers for goods sold or for services performed. Accounts receivable can be defined as an account which gives information about legally enforceable monetary claims that are to be recovered by a company from a customer who is yet to make payment.

2. Other receivables: a miscellaneous category that includes any other type of receivable where there is a right to receive cash in the future.

3. Debtor: the party who receives a receivable and will collect cash in the future.

4. Notes receivable: a written promise to pay a specified amount of money at a particular future date.

5. Maturity date: it is the date when the note receivable is due.

Search... Unlock all answers JOIN FOR FREE jswagballerlife4060 01/08/2020 Business College answered LO 5.3Direct material costs $3 per unit, direct labor costs $5 per unit, and overhead is applied at the rate of 100% of the direct labor cost. What is the value of the inventory transferred to the next department if beginning inventory was 2,000 units; 9,000 units were started; and 1,000 units were in ending inventory? $1,000 $13,000 $130,000 $20,000

Answers

Answer:

$130,000

Explanation:

Calculation to determine the value of the inventory transferred to the next department

First step is to calculate the Cost per unit

Using this formula

Cost per unit = Direct material costs + Direct labor costs + Overhead

Let plug in the formula

Cost per unit=$3+$5+(100%*$5)

Cost per unit = $3 + $5 + $5

Cost per unit = $13

Second step is to calculate the inventory transferred using this formula

Inventory transferred = Beginning inventory + Started Inventory - Ending inventory .

Let plug in the formula

Inventory transferred = 2,000 + 9,000 - 1,000

Inventory transferred = 10,000 units

Now let calculate the value of the inventory transferred

Using this formula

Value of inventory transferred = Inventory transferred × Cost per unit

Let plug in the formula

Value of inventory transferred = 10000 × $13

Value of inventory transferred = $130,000

Therefore the value of the inventory transferred to the next department is $130,000

How can business activity affect the government?

Answers

Businesses often engage in a variety of tactics to influence government policy. This includes lobbying, political contributions, and interest group politics.

A co-worker who has to leave work early to deal with a personal matter asks that you complete some time-sensitive paperwork and turn it into your supervisor before leaving at the end of the day. You agree and urge your co-worker to leave in order to address his personal matter, assuring him it will be taken care of. At the end of the day, you neglect to carry through on your promise and do not complete the paperwork. The next day, your supervisor chastises your co-worker, indicating that a reprimand will be placed in their personnel file because of the failure. Your co-worker does not disclose that you had promised to complete the work. Using the Golden Rule as a guideline, you should: _______.

Answers

Answer:

intervene and tell the supervisor you had assumed responsibility for the paperwork and forgot

Explanation:

The golden rule is based on a principle of reciprocity and it states that one should treat others the way they want to be treated.

Different religions overtime have the same principle embedded in their doctrines.

In the given scenario where a coworker told you to compete some work for him before leaving and you failed to do so, when the coworker is being reprimanded you should take responsibility for the paperwork and say you forgot.

This is only fair on your coworker seeing it wasn't his fault the work was not done.

Also when you treat people fairly you can also be expected to be treated fairly too.

Who has the most goals in fifa history​

Answers

Answer:

Pele

explanation:

In 1.9k+ goals

A government acquires as an investment a 30-year U.S. Treasury bond having a face value of $10,000. At the end of year 20, with 10 years remaining until maturity, the bond had a fair value of $10,200. Taking into account the discount at which the government initially purchased the bond, its amortized cost was $9,760. Assuming that it held the bond in a governmental fund, the government should report the bond at a value of

Answers

Answer:

$10,200

Explanation:

Based on the information given Assume that it held the bond in a governmental fund, the GOVERNMENT SHOULD REPORT THE BOND AT A VALUE OF THE AMOUNT OF $10,200 reason been that we were told that the bond had a FAIR VALUE of the amount of $10,200.

Therefore the government should report the bond at a value of $10,200.

Write any four benefits of working in a positive workplace.

Answers

Answer:

1. Self-comfort

2. Get interested

3. Get interacted with others

4. Having good work.

Companies striving for global market leadership pursue strategic alliances or collaborative partnerships with foreign companies in order toMultiple Choicerevamp the global industry value chain, raise needed financial capital from foreign banks, and wage price wars against foreign competitors.exercise better control over efforts to revamp the global industry value chain and combat the bargaining power of foreign suppliers.exercise better control over efforts to revamp the global industry value chain, insulate a company from the impact of the five competitive forces, and use the brand names of their partners to make sales to foreign buyers.increase the bargaining power of foreign suppliers and help defend against the competitive threat of substitute products produced by foreign rivals.get into critical country markets quickly, gain inside knowledge about unfamiliar markets and cultures, and access valuable skills and competencies that are concentrated in particular geographic locations.

Answers

Answer:

get into critical country markets quickly, gain inside knowledge about unfamiliar markets and cultures, and access valuable skills and competencies that are concentrated in particular geographic locations.

Explanation:

Globalization can be defined as the strategic process which involves the integration of various markets across the world to form a large global marketplace. Basically, globalization makes it possible for various organizations to produce goods and services that is used by consumers across the world.

Some examples of international economic organizations involved in global economy and trade are;

I. World Trade Organization (WTO).

II. United Nations (UN).

III. International Monetary Fund (IMF).

IV. United Nations Conference on Trade and Development (UNCTAD).

When a company or business firm strive for global market leadership, its main focus would be to pursue strategic alliances or collaborative partnerships with foreign companies. This would enable it get into critical country markets quickly and effectively, it would also gain an inside knowledge and understanding about unfamiliar markets, consumer demographics and cultures, as well as getting hold of valuable skills and competencies that are concentrated in specific geographic locations in the world.

Factories that produce smartphones can also produce smart watches. Which of the following events in the market for smartphones illustrates the law of supply?
1. The price of a smart watch falls.
2. A new robot technology lowers the cost of producing smartphones.
3. The price of a smartphone falls.
4. The price of a smartphone is expected to rise next year.
5. The wage rate paid to smartphone factory workers increases.
A, Event #1 only
B. All 5 events listed
C. Events #1, #4, and #5
D. Events #2, #3, and #4
E. Event #3 only

Answers

Answer:

e

Explanation:

according to the law of supply, the higher the price, the higher the quantity supplied and the lower the price, the lower the quantity supplied.

Only a change in the price of he good affects the law of supply

When The price of a smartphone falls, quantity supplied falls

other factors lead to a change in demand

Will the fact that the euro has become the standard currency in the EU help or hinder a new McDonald's franchise in Europe?

Answers

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Answer:

a new McDonald's franchise in Europe?

Domestic production is also known as? 
(a) Surplus
(b) Local
(c) Traditional
(d) Subsistence​

Answers

Answer:

Domestic production is also known as (d) Subsistence.

Explanation:

Gross Domestic Product (GDP) is the final monetary value of the goods and services produced within the country during a specified period of time, normally a year. In simple terms, GDP is the measure of the country's economic output in a year.

It’s also known at Subsistence D

All of the following are skills needed by an accountant except: O Communication O Time management O Speed O Critical Thinking​

Answers

Answer:

O Speed.

Explanation:

An accountant is someone who keeps an account of the financial records of a person or a business. They are responsible for performing accounting functions such as analyzing accounts, auditing, and reporting the financial transactions of a person or a business.

Among the various skills needed to be an accountant, speed is not one of them. Communication, be it oral or written is one important aspect of the requirement while time management and critical thinking are also important aspects of an accountant.

Thus, the correct answer is the third option.

Difference between profession and professional human resource

Answers

Answer:

Professional in Human Resources (PHR) human resource management profession. The certification, awarded by the Human Resource Certification Institute (HRCI), signifies that individuals possess the theoretical knowledge and practical experience in human resource management necessary to pass an examination demonstrating a mastery of the body of knowledge in the field. The Senior Professional in Human Resources (SPHR) is the senior-most human resources certification for those who have also demonstrated a strategic mastery of the HR body of knowledge.

Give examples of the ways in which each of the five factors of production can affect the business performance of McDonald's or Walmart.

Answers

Explanation:

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Answer:

Give examples of the ways in which each of the five factors of production can affect the business performance of McDonald's or Walmart.

An economy can produce either guns or butter with all available resources. Suppose it currently produces all butter and it chooses to produce some guns, thereby giving up some production of butter. As a result, the first 200 units of guns are produced at the cost of only 50 units of butter. Not surprisingly, the next 200 units of guns are produced at the cost of 150 units of butter and the last 200 units of guns at the cost of 300 units of butter. What does this describe?

Answers

Answer: The law of increasing opportunity costs

Explanation:

The scenario given describes the law of increasing opportunity costs. This law explains that when there's an increase in output in the production of a good, this will then bring about a scenario whereby the opportunity costs of the additional units of the other good will then be less.

As there is an increase in the production of one good, then this will lead to the increase in the opportunity cost of producing the next unit.

Due to a mild winter, Florida experienced a bumper crop of oranges. This would best be represented by a(n) movement down the U.S. production possibility frontier. movement off the U.S. production possibility frontier to some point inside the frontier. movement up the U.S. production possibility frontier. outward shift of the U.S. production possibility frontier away from the origin.

Answers

Answer:

movement up the U.S. production possibility frontier.

Explanation:

The Production possibilities frontiers is a curve that shows the various combination of two goods a company can produce when all its resources are fully utilised.  

The PPF is concave to the origin. This means that as more quantities of a product is produced, the fewer resources it has available to produce another good. As a result, less of the other product would be produced. So, the opportunity cost of producing a good increase as more and more of that good is produced.  

Point outside the curve or to the right of the curve means that the production level is not attainable given the level of resources

Points inside the production possibilities curve means that the nations resources are not being fully utilised

Factors that cause the PPF to shift  

1. changes in technology.  

2. changes in available resources.  

3. changes in the labour force.

Due to the winter, there would be a movement up along the PPF

Maddie noticed that many students on campus had t-shirts and sweatshirts with Greek organization letters or club names on them. Recognizing that there was a huge market for this attire, Maddie rented a store front and a silk screening machine to get into the t-shirt business. Maddie's rent is $1,000 a month, including utilities. The silk screen machine leases for $300 a month. Maddie can buy blank t-shirts for $6 each and sweatshirts for $10 each. Maddie calculated the cost of materials for the silk screening at $2 per unit. If Maddie sells a screened t-shirt for $15 and a sweatshirt for $25 each, which would she prefer the customer purchase?
A) Sweatshirt because the contribution margin is higher
B) T-shirt because the cost of production is lower
C) Sweatshirt because the selling price is higher
D) T-shirt because the contribution margin is higher

Answers

Answer:

D

Explanation:

Contribution margin is the level of output at which revenue would equal zero

Contribution margin = fixed cost / (price - variable cost)  

fixed cost = 1000 + 300 = 1300

variable cost :

t shirt = 6 + 2 = 8

sweats = 10 + 2 -= 12

1300 / ( 15 - 8) = 185.71

1300 / ( 25 - 12)

Product ABC has a contribution margin per unit of $10.00. Each unit of ABC requires 5 minutes of machine time. Product XYZ has a contribution margin per unit of $15.00 and each unit requires 10 minutes of machine time. If the company's constraint is machine hours, to maximize profit, they should first fill the demand for____.

Answers

Answer:

Product ABC

Explanation:

Calculation to determine the maximize profit, they should first fill the demand for if the company's constraint is machine hours.

Product ABC's CM per unit= $10/5 minutes

Product ABC's CM per unit=$2 per minute of machine time

Product XYZ's CM per unit=$15/10 minutes

Product XYZ's CM per unit= $1.50 per minute of machine time

Therefore If the company's constraint is machine hours, to maximize profit, they should first fill the demand for PRODUCT ABC because it has the HIGHEST CM PER UNIT.

As the CEO of your company, you can use only the planning and controlling functions to reach your organizational goals.
Select one:
O True
O False

Answers

Answer: False

Explanation:

CEOs are top management and top management use all five functions of management to ensure that the company reaches its goals and objectives.

The CEO has to use planning to to decide what long term strategies the company will use to achieve its goals. They have to use controlling to evaluate and improve the methods the company is taking to achieve its long term goals.

They also have to use staffing to hire the best top level and middle level talents that can push the company forward. As management they have to use leading to get the employees inspired to move the company forward and finally they will use organizing to put the various processes in the company together to ensure that the company's goals are met.

define the term display work?​

Answers

it’s like to show another copy or something like an example of a movie how there’s a copy of a book and there’s a movie or television form.

Identify and explain two disadvantages to PShirts of being a private limited company.​

Answers

Answer:

Cannot quote stock on Stock Exchange

A private limited company by definition will not be allowed to trade on stock exchanges like a public limited company would. This means that they will not be able to go into the stock market to seek additional funding if needed thereby reducing their chances of getting investment funds.

Number of shareholders limited.

Private limited companies face a limit on the number of people that can hold shares in the company. Some countries have different limits but generally the number of shareholders should be somewhere between 2 and 200.

This again restricts the amount that can be raised from issuing stock.

Football Contractors, INc., which reports under US GAAP, has contracted to build a stadium for the City of Washburn. The contract price is $100 million and costs are estimated at $60 million. Costs are not assured, however, because there is a material risk, which Football Contractors has assumed, that ground water problems might slow construction and increase costs by as much as $40 million. In 2004, the first year of the agreement, Football Contractors, Inc. billed $30 million, received $20 million payment, and incurred $15 million in costs. For 2004 Football Contractors, INc. should recognize revenue from the CIty of WAshburn transaction in the amount of:
A) $0.
B) $30 million.
C) $20 million.

Answers

Answer:

The answer is A. $0

Explanation:

It is stated in the question that the total costs to completely deliver this contract has not been clearly defined due to uncertainty in ground water problem.

Thus, the method should be applied under US GAAP in this situation is complete contract method which indicates that No revenue should be recorded until the contract is completed and the total cost to deliver contract is defined.

Thus, in 2004, the revenue from contract is not recorded at all which gives us the answer to be A. $0

Answer:

A) $0.

Explanation:

Under the US GAAP, when there are uncertainties surrounding costs and cannot be estimated reliably, the completed contract  method would be applied.

Completed contract method means that no revenue would be recognized on the contract until contract completion, in other words, Football Contractors, Inc. should not recognize any revenue e from the CIty of Washburn transaction in the year 2004.

In short, the correct option is A with $0 revenue in the year 2004.

Which of the statements below is​ FALSE?
A. Shareholders with super voting right shares have multiple votes per share a fact that increases their influence and control over the company.
B. Some firms issue several classes of common​ stock, and these classes may have unequal voting rights.
C. The standard of one vote for each share cannot be altered.
D. Common stock usually carries the right to participate in the management of the firm through the right to vote for the members of the Board of Directors and for changes to the charter and bylaws of the company.

Answers

Answer:

C. The standard of one vote for each share cannot be altered.

Explanation:

Shares are sold to individuals that now obtain ownership rights of a company.

Common share holders are entitled to voting in of new board members and also have the ability to vote for changes in bylaws of the company.

Also common shareholders are shares have different classes with different voting rights.

However it is not true that the standard of one vote for each share cannot be altered.

When more shares are issued by a company it can result in dilution of shares. That means for example if a person has 10,000 shares in a company with 1 million shares, and the company now issues an extra 1 million shares making 2 million in total now.

The shareholder's standard of vote for each share is now halved

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