Answered step by step

Verified Expert Solution

Link Copied!

Question

1 Approved Answer

Posted on Dec 31, 2018

If firms do NOT account for external costs of production, then marginal social cost A. is greater than marginal cost. B. is less than marginal

If firms do NOT account for external costs of production, then marginal social cost

A. is greater than marginal cost.

B. is less than marginal cost.

C. equals marginal cost.

D. is zero.

Step by Step Solution

★★★★★

3.43 Rating (153 Votes )

There are 3 Steps involved in it

Step: 1

A is greater than marginal cost Explanation Often firms dont include various social cost su... blur-text-image

Get Instant Access to Expert-Tailored Solutions

See step-by-step solutions with expert insights and AI powered tools for academic success

Step: 2

Step: 3

Document Format ( 2 attachments)

6097490077b16_27695.pdf

180 KBs PDF File

6097490077b16_27695.docx

120 KBs Word File

Ace Your Homework with AI

Get the answers you need in no time with our AI-driven, step-by-step assistance

Get Started

Recommended Textbook for

Introduction to Corporate Finance

Authors: Laurence Booth, Sean Cleary, Ian Rakita

4th edition

1119171288, 978-1119171287

More Books

Students also viewed these Accounting questions

Question

★★★★★

If firms do not pay any dividends, then we cannot use the Dividend Growth Model (DGM) to evaluate the stock price In such circumstance, do we have any other ways to evaluate the stock price, as...

Answered: 1 week ago

Question

★★★★★

What mistakes can occur if firms do not make the appropriate adjustments?

Answered: 1 week ago

Question

★★★★★

The refractive index of material A is greater than the refractive index of material B. A ray of light is incident on the interface between these two materials in a number of ways, as the drawings...

Answered: 1 week ago

Question

★★★★★

Anon Amus Inc. operates a woodworking shop that makes tables and chairs. He has 25 employees working 40 hours per week and he has 750 hours per week available in machine time. Ralph knows that he...

Answered: 1 week ago

Question

★★★★★

Selected accounts and related amounts for Clairemont Co. for the fiscal year ended May 31, 2016, are presented in Problem 5-5A. In Problem 5-5A The following selected accounts and their current...

Answered: 1 week ago

Question

★★★★★

9-18. Why is timing an important consideration when evaluating the distribution of a data set?

Answered: 1 week ago

Question

★★★★★

Coping with competitive pressure and sport performance anxiety

Answered: 1 week ago

Question

★★★★★

The Beasley Corporation has been experiencing declining earnings, but has just announced a 50 percent salary increase for its top executives. A dissident group of stockholders wants to oust the...

Answered: 1 week ago

Question

★★★★★

What is the value of a stock that is expected to pay a constant dividend of $16 per year if the required return is 9%? (Tip Zero Growth Case)

Answered: 1 week ago

Question

★★★★★

In 2018, Kida Company purchased more than $10 million worth of office equipment 11-6, 11-9 under its special ordering system, with individual orders ranging from $5,000 to $30,000. Special orders...

Answered: 1 week ago

Question

★★★★★

Pattern of relationship of headquarters and business units, what are criteria of success business units ? Are the criteria same for business units ? why ?

Answered: 1 week ago

Question

★★★★★

4. The Citizens Bank commissioned a study to determine processing times for new accounts. Five samples of four observations each have been taken, as shown in the following table: Totals Sample 1...

Answered: 1 week ago

Question

★★★★★

R1. A gas purification system needs to produce 3 kg/hour of purified product. If the purification membrane area is 40 m and 0.06mm thick, determine: (4) A. Flux of gas required for desired production...

Answered: 1 week ago

Question

★★★★★

Matrix Inc performs following job and it wants you to compute Actual Costing and Nominal Costing Based on following info:

Answered: 1 week ago

Question

★★★★★

Question 18 2 Points As a result of continuously measuring and evaluating their performance, Dana Pastries identified five areas that require improvement. Accordingly, they launched a new initiative...

Answered: 1 week ago

Question

★★★★★

Debate the following statement: 'Big Data' and the buzz of the so-called 'green marketing' and 'sustainable marketing' are being used nowadays by marketing professionals to increase the grip and the...

Answered: 1 week ago

Question

★★★★★

I ONLY NEED 3&4 ANSWERED PLEASE: Write and test a MIPS program consisting of four functions. In the following descriptions, the symbol & means address of. 1). void main(): The main function must 1)...

Answered: 1 week ago

Question

★★★★★

In Problem use absolute value on a graphing calculator to find the area between the curve and the x axis over the given interval. Find answers to two decimal places. y = x 3 ln x; 0.1 x 3.1

Answered: 1 week ago

Question

★★★★★

Sam and Bob are arrested and placed into the back seat of a police car. When the arresting officer steps away from the vehicle, Sam and Bob begin to talk about the fact that they hid evidence of...

Answered: 1 week ago

Question

★★★★★

What complications arise when firms are rationed in terms of their available capital budget?

Answered: 1 week ago

Question

★★★★★

What tax benefits can occur in an M&A?

Answered: 1 week ago

Question

★★★★★

How is a traditional bond structured?

Answered: 1 week ago

Question

★★★★★

Explain why a simulation model with only discrete probability distributions produces the same results as the corresponding decision tree model even though it uses very different solution methods.

Answered: 1 week ago

Question

★★★★★

Explain why in decision analysis we are concerned with the expected value of information.

Answered: 1 week ago

Question

★★★★★

If you were to make Leah Sanchezs decision of how many calendars to order, what order amount would you chose? Why?

Answered: 1 week ago

Previous Question Next Question