Capital budgeting decisions ______. Multiple select question. involve an immediate cash outlay in order to obtain a future return are day-to-day decisions made by managers require little or no thought before being made require a great deal of analysis prior to acceptance

Answers

Answer 1

Answer:

involve an immediate cash outlay in order to obtain a future return

require a great deal of analysis prior to acceptance

Explanation:

A capital budgeting decision refers to an investment and the financial commitement. If we considered a project so here the business is making the financial commitment and at the same time it invest in the longer period that have an influence on the future projects

So it is an instant cash outflow for gaining a future return and also have a great deal before accepting it


Related Questions

If Suzette responds to an increase in the interest rate by decreasing her saving, then, for Suzette, Select one: a. consumption when young and consumption when old are perfect substitutes. b. the increase in the interest rate creates an income effect that is greater than the substitution effect. c. the increase in the interest rate creates a substitution effect that is greater than the income effect. d. consumption when young and consumption when old are perfect complements.

Answers

Answer:

b. the increase in the interest rate creates an income effect that is greater than the substitution effect.

Explanation:

Interest rate can be regarded as amount that is been charged by lender for using an assets, this asset could be cash, goods, and this is usually display as a percentage of the lent principal.

The income effect gives shows how increased purchasing power can impact consumption, substitution effect on other hands, shows how changing relative income as well prices impact consumption. Both economics concepts give expression of changes that occur in the market as well as how this changes impact consumption patterns as regards consumer goods and services.

It should be noted that the increase in the interest rate creates an income effect that is greater than the substitution effect.

David opened his own bicycle shop 30 years ago, and although he enjoyed his work, he needed more free time. When Josie requested to work as an apprentice, David was very willing. Before long Josie was able to run the store without any help. This is an example of how:

Answers

Answer:

This is an example of how an apprenticeship can benefit both the business owner and the apprentice.

Explanation:

Apprenticeship is the system or process of hiring someone to train him/her to learn the trade. This method is used in companies and other jobs to train new generations about the trade and also pass on the job.

David may have had the bicycle shop for three decades but now that he desired more free time, he had to pass on the work to someone who can take care of the shop in his place. The apprenticeship of Josie enabled him to have the desired free time while his shop still runs. This is an example of how apprenticeship is beneficial for both parties.

The management at Kohler Inc., a manufacturer of sinks, tubs, and other plumbing products, thinks that there will soon be a major growth in home remodeling due to rising interest rates. The management decides to use ____ in several key cities to provide support services for its sales force in those areas, carry inventory, and offer credit and other services to its retail plumbing customers.

Answers

Answer:

sales branches.

Explanation:

A sales branch can be defined as a wholesaler owned by a manufacturer and takes product title, assumes the risk associated with the ownership of this product, resells the product, as well as providing services to the end users or consumers. Thus, it's a form of business management set up by manufacturers in order to improve on their inventory control, sales, as well as the promotion of goods and services.

In this scenario, the management at Kohler Inc. is using sales branches in several key cities because it provide support services for its sales force in those geographical areas, carry inventory, as well as offering credit and other services to its retail plumbing customers.

A student buys a cell phone for $200 and is offered protection insurance for the phone.
What should the student consider in order to determine whether or not to buy the
insurance?
What texting capabilities does the phone have?
O is the phone a need or a want?
What is the risk of losing or damaging the phone?
Is there a fee for cancelling the phone contract?
Helppppp

Answers

Answer: What is the risk of losing or damaging the phone?

Explanation:

Insurance is a form of protection from a financial loss. After purchasing the phone for $200, if the student is offered protection insurance for the phone, the main thing to consider is the risk of losing or damaging the phone.

The value of buying insurance for a cell phone is simply for the person to be able to replace the cell phone in case of a scenario whereby the phone is lost or stolen.

Jill's parents are concerned because she does not have a job despite graduating from college. Her parents tell her that they got jobs right out of high school, so she should be able to get a job very easily. They conclude that she must be lazy. Jill tells them that they need to consider larger economic trends and changes in technology to understand why she is having trouble finding a job. Jill is using __________________ to explain her inability to get a job:

Answers

Answer:

Her sociological imagination.

Explanation:

From the question, we were informed about Jill's parents who were concerned because she does not have a job despite graduating from college. Her parents tell her that they got jobs right out of high school, so she should be able to get a job very easily. They conclude that she must be lazy. Jill tells them that they need to consider larger economic trends and changes in technology to understand why she is having trouble finding a job. Jill is using

Her sociological imagination to explain her inability to get a job. The sociological imagination can be regarded as a practice that involved having ability to “think ourselves away” from some of our daily and familiar routines of our lives, so that see them with critical and new eyes, Sociological imagination is ability gotten by individual to focus away from his/her particular situation then think from other point of view or alternative perspective. Sociological imagination can be regarded from other point of view as capacity of individual to shift his/her thought from one perspective to another perspective.

An industry can be defined as a group of: a. companies offering products or services that are close substitutes for each other. b. brands that offer different products but are owned by a single firm. c. different kinds of companies that are based in the same geographic location. d. companies that are different but generate similar amounts of revenues. e. manufacturing plants of a single company.

Answers

Answer:

A

Explanation:

An industry is a group of companies that provide good and services that are closely related. An example of an industry is the beauty industry. Companies that would be included in this industry would include companies that produce lipstick, powder, foundation, cream, exfoliators etc

Classification of industries

1. primary industry : they are involved in the getting of raw materials e.g. the fishing industry

2. secondary industry :  they make use of raw materials to manufacture products e.g. automobile industry

3. tertiary industry : they provide services e.g education industry

Lavanya is a startup founder who is working on the design of a smart bracelet. She needs to sketch out some ideas with a designer who lives in another country and wants to try using an online collaborative whiteboarding program for their design session. Lavanya is nervous about their design ideas being lost or getting into the wrong hands, however. Which of these is not a way that the whiteboarding data could be lost or stolen

Answers

Answer:

Wow design is sweet on the bracelet

A firm with $600,000 in sales, cash on hand of $750,000, liabilities of $200,000 and total assets of $1 million has a total asset turnover of ______ times. A firm with $600,000 in sales, cash on hand of $750,000, liabilities of $200,000 and total assets of $1 million has a total asset turnover of ______ times.

Answers

Answer: 0.6

Explanation:

Sales = $600,000

Cash on hand = $750,000,

Liabilities = $200,000

Total assets = $1 million

The formula for assets turnover is:

= Sales / Assets

where,

Sales = $600,000

Assets = $1,000,000

Therefore, asset turnover = $600,000 / $1,000,000 = 0.6

Therefore, the assets turnover is 0.6

A month after your mutual aid agreement is activated for an incident, a participating jurisdiction claims that their responders are suffering from health problems and that is your responsibility to pay for their care. Your first step in this situation should be to: A. Check the Insurance and Liability section of your mutual aid agreement. B. Check the Demobilization section of your mutual aid operational plan. C. Reimburse them. D. Tell them to file a claim with your insurance company.

Answers

Answer:

A. Check the Insurance and Liability section of your mutual aid agreement

Explanation:

Firstly, a mutual aid agreement is a documents that sets the rules or terms under which help or assistance can be provided between two parties, jurisdictions, NGO, etc.

From the above question, it is important that before any step is taken, it is important to check the insurance an liability section of the mutual aid agreement. This will help to ascertain if indeed you are responsible for the healthcare payment of the responders as claimed by the participating jurisdiction.

This helps to clarify who is responsible for the responders.

Cheers

Consider Luis's decision to go to college. If he goes to college, he will spend $21,000 on tuition, $11,000 on room and board, and $1,800 on books. If he does not go to college, he will earn $16,000 working in a store and spend $7,200 on room and board. Luis's cost of going to college is

Answers

Answer:

$42,600

Explanation:

The computation of the cost of going to college is given below:

the total cost when he goes to college he spends

21,000 on tuition

11,000 on room and board

1,800 on books

So, the total should be $33,800

Now in the case when he does not go to college

So,  

he will earn 16,000 working in a store

and spend 7,200 on room and board

So, the saving amount should be

=  16,000 - 7,200

= $8,800

Now the cost should be  

= 33,800+8,800

= $42,600

A major financial institution hired a renowned security firm to attempt to compromise its computer network. A few days later, the security firm reported that it had successfully entered the financial institution's computer system without being detected. The security firm presented an analysis of the vulnerabilities that had been found to the financial institution. This is an example of a

Answers

Answer:

detective control.

Explanation:

Cyber security can be defined as preventive practice of protecting computers, software programs, electronic devices, networks, servers and data from potential theft, attack, damage, or unauthorized access by using a body of technology, frameworks, processes and network engineers.

IDS is an acronym for intrusion detection system and it can be defined as a security system which is typically used to monitor network traffic and it notifies the engineer when there's a malicious activity.

Generally, the detection methods used by the Intrusion Detection Systems (IDS) are;

1. Statistical anomaly-based detection.

2. Stateful protocol analysis detection.

3. Signature-based detection.

Hence, the operations in this scenario is an example of a detective control which avails a business firm information about vulnerabilities that exist in its network system.

The answer to this question

Answers

CPI in 1960 = 29.6

CPI in 1970 = 38.8

Dozen Tangerines in 1960 = 0.31

Dozen tangerines in 1970 = 0.39

Option B

Answered by Gauthmath must click thanks and mark brainliest

The AD Curve ________. A) indicates the level of aggregate output corresponding to different goods-market-clearinglevels of the inflation rateB) is downward sloping, because with higher inflation comes higher interest rates and lower spending, so equilibrium aggregate output declines C) explains how inflation affects output in the short runD) all of the above

Answers

Answer:

D) all of the above

Explanation:

The AD curve shows the aggregate output level that should be for different kinds of goods have the inflation rate

It is downward sloping due to more inflation that raised the inflation rate due to this less spending should be there

Also it described how the inflation impacts the output for the short period of time

Therefore the option d is correct

A company that uses the accrual method of accounting started the fiscal year with assets of $600,000 and liabilities of $400,000. During the fiscal year the company recorded credit sales of $250,000, of which $8,000 remained to be collected at year end, and incurred expenses of $90,000, of which $72,000 was paid in cash. A stock dividend valued at $10,000 was declared and issued to stockholders during the year. What is the year-end balance of total equity

Answers

Answer:

$360,000

Explanation:

Calculation to determine What is the year-end balance of total equity

First step

Beginning equity = Total assets - Total liabilities.

Beginning equity= $600,000 - 400,000

Beginning equity= $200,000

Second step

Net income = Revenues - Expenses

Net income= $250,000 - $90,000

Net income= $160,000

Last step

Ending balance of Equity = Beginning equity + Net income

Ending balance of Equity = $200,000 + $160,000

Ending balance of Equity = $360,000

Therefore the year-end balance of total equity is $360,000

The two neighbors of the United States do a lot more trade with the United States than European economies of equal size. A) This contradicts predictions from gravity models. B) This is consistent with predictions from gravity models. C) This is irrelevant to any inferences that may be drawn from gravity models. D) This is because these neighboring countries have exceptionally large GDPs. E) This relates to Belgium's trade record with the U.S.

Answers

Answer:

B) This is consistent with predictions from gravity models.

Explanation:

Gravity model suggests that the volume of trade that occurs between countries close to one another exceeds those with other countries that are are away.

Distance between nations is seen to have a negative effect on the volume traded between two nations. So the further a nation the less trade that will be done with it.

In the given scenario where two neighbors of the United States do a lot more trade with the United States than European economies of equal size, it is consistent with the gravity model.

During the current fiscal year, the Gateway City government recorded a $15,000 transfer from the General Fund to an internal service fund, a $25,000 transfer from the General Fund to an enterprise fund, a $10,000 transfer from an enterprise fund to an internal service fund, and a $5,000 transfer from an enterprise fund to the General Fund. In the Business-type Activities column of the government-wide financial statements, Gateway City should report: Multiple Choice

Answers

Answer:

$10,000

Explanation:

Calculation to determine what Gateway City should report in the government-wide financial statements

Using this formula

Net Transfer=+Transfer from the General Fund to an enterprise fund-Transfer from an enterprise fund to an internal service fund-Transfer from an enterprise fund to the General Fund

Let plug in the formula

Net Transfer =+$25,000-$10,000-$5,000

Net Transfer=$10,000

Therefore In the Business-type Activities column of the government-wide financial statements, Gateway City should report:Net Transfer in of $10,000

You are assisting a manager from your company's headquarters in New York. The manager needs to interact online in real time with one of your company's affiliate overseas. The manager wants to make sure that her communications with the overseas affiliate won't be intercepted. What should you suggest to the manager

Answers

Answer:

A virtual private network connection

Explanation:

In order to stop the interception that could be normally happened within a weak or the communciation line that should be non-secure

Also the main objective of the virtual private network is to protect and it could be protected via interception

So we can suggest the manager that there should be the virtual private network connection

Hence, the same should be relevant

What is price index number?​

Answers

Answer:

Price index number can be defined as a measure of how the price of goods and services change over a specific period of time.

Explanation:

Price can be defined as the amount of money that is required to be paid by a buyer (customer) to a seller (producer) in order to acquire goods and services. Thus, it refers to the amount of money a customer or consumer buying goods and services are willing to pay for the goods and services being offered.

Generally, the price a consumer (buyer) would pay for goods and services are primarily being set by the seller or service provider.

In sales and marketing, pricing of products is considered to be an essential element of a business firm's marketing mix because place, promotion and product largely depends on it.

Price index number can be defined as a measure of how the price of goods and services change over a specific period of time.

Hence, it's a statistical value (number) that is typically used for expressing the price change of goods and services as a percentage of prices in a base year.

On a related note, the consumer price index (CPI) is a measure used to analyze and examine the weighted average or aggregate of prices of a basket of goods and services paid for by consumers such as medical, food, and transportation.

Suppose the price elasticity of supply for dog biscuits is 0.8 in the short run and 1.4 in the long run. If an increase in the demand for dog biscuits causes the price of dog biscuits to increase by $15, then the quantity supplied of dog biscuits will increase by about

Answers

Answer:

12% short run, 21% long run

Explanation:

In the short run, the price elasticity for biscuits is 0.8

0.8×15

= 12%

In the long, run the price elasticity for biscuits is

= 1.4×15

= 21%

Hence the quantity of supplied dog biscuits will increase by 12% in the short run and 21% in the long run

1. Frank is a 60- year-old man who is well-loved in his community since he was a boy. He is someone who is outgoing, a party lover, and love to have fun hanging out with peers. Frank is confident about life. From an early age he knew exactly what he wanted to become, and now as a man, he is confident about his career and family and want to leave them a good life when he departs this life. Frank express that he is not afraid of dying but he wants them to be ok when he is gone.
At work Frank is helpful to his colleagues, and even in his community he is well-known among the elderly since he is always putting on Christmas treats for them.

Imagine that Frank is your colleague, and that your boss asks you to write a character reference for Frank. Using Jung’s personality theory to guide your writing, present a minimum one- page character reference in which you spell out Franks behaviour, his outlook on life, his philosophy about people and all the other important things you know about him. Ensure you point out how these different parts of Franks life fits into Jung’s theory and overall what Jung’s theoretical concept says about him

Answers

The answer is "Extroversion as a character trait Has a significant effect on attitudes".

Life's outlook:

The people with just an extroversion type of personality are renowned for their sociability, talkativeness, assertiveness, and hyperactivity. Frank is also an outgoing, party-loving individual who enjoys spending time with friends. Frank is enthusiastic about his future, and in terms of his profession or family , and he feels confident.

People's philosophy:

Like Frank, individuals with high levels of assertiveness wish to obtain out social stimulation and opportunities to socialize. Individuals with any of these characteristics are typically described as having a high level of vitality, energy, and a positive attitude.When in a group setting, extraversion is likely to comment and assert themselves. Frank is also one of those guys who enjoys producing enthusiasm and ideas for others and the public events with and working in teams. Showing others how to solve a problem, collaborative work, and problem-based learning are types of educational processes that are beneficial to this group of individuals. Additionally, He enjoys instructing others, engaging inside a group, and learning by just doing.

Characteristics of Franks:

Social connection is all he needs to get a boost in energy levels. Extroverted and in need of social stimulation.Speaking and discussing ideas with everyone was a source of motivation for him in the past, as well as excitement.Activision and attention seeker, he loves being the focus of attention.When he is around, some are made to feel confident and satisfied by him.Has the ability to lead, engage, and voice an opinion at a certain time without hesitation.His leadership style is mirrored in his actions. He is much more prone to assert himself in groups, thus it makes perfect sense why he typically takes on leadership duties when dealing with others. Sometimes, he jumps headfirst, with no help.

There are two dimensions to extroverted learners, as per Psychological personality traits:

It is a desire of these students that help people by producing thoughts & enthusiasm. They enjoy socializing with one another and working in teams.Teaching someone else how to solve problems, collaborative work, and problem-based education are all educational activities that assist these aspects of learning.A feeling-based learning style is used by extroverts whenever they handle knowledge based on the immediate emotional reactions that the knowledge produces. A personal bond, a feeling of well-being, and communal harmony are important to them and these people make emotional decisions, and we do not like to deal with conflict.

Conclusion:

The extrovert person's personality is defined by Jung as being among the most cheerful.

Learn more:

brainly.com/question/24264999

(Choose the most appropriate answer from the choices below) In an assembly line balancing problem, work station cycle time.
I. will decrease as the required production per day increases, other things remaining the same.
II. will increase as the required production per day increases, other things remaining the same.
III. will decrease as the production time per day increases, other things remaining the same.
IV. will increase as the production time per day increases, other things remaining the same.
A. IV
B. II
C. I
D. III
E. I. and IV

Answers

Answer:I need points

Explanation:

Hola

10. Publishing representatives who call on college professors to inform them of their company's new publications have a great deal of freedom in their jobs. They have only a general sales pitch, which they tailor as needed. Based on this information, we can say that the job of these publishing representatives ________.

Answers

Answer:

Scores low on degree of formalization

Explanation:

Degree of formalization of a process is the level to which the process is free of the personal input of the individual executing the process.

It implies that in high degree of formalization process execution is set and the same steps are followed by all participants.

In the given instance Publishing representatives have a great deal of freedom in their jobs.

They tailor their sales pitch as they see fit.

This shows a low degree of formalization in the sales process

Assume that corn and soybeans are alternatives that could be grown by most farmers. An increase in the price of corn will Group of answer choices increase the supply of corn. increase the supply of soybeans. decrease the supply of soybeans. decrease the supply of corn. have no effect on the supplies of corn and soybeans.

Answers

An increase in the price of corn will lead to an increase the supply of corn.

According to the law of supply, when there's an increase in price of a particular good, the quantity of that good that is supplied by the producer will increase.

In this case, since there's an increase in the price of corn, the farmers will prefer to supply more of corn in order to maximize profit.

Therefore, the correct option will be that there will be an increase the supply of corn.

Read related link on:

https://brainly.com/question/1222851

An agreement between countries to encourage free trade and promote thegroup's collective economic interests is an__
O A. comparative advantage
OB. trade bloc
O C. absolute advantage
D. trade barrier

Answers

Answer:

OB. trade bloc.

Explanation:

A trade bloc is when a group of countries come together and form or create an agreement that reduced or even eliminates any restrictions on trade between themselves. This type of intergovernmental agreement allows the participating countries to have cordial economic relationships with each other.

Through this type of agreement, the regional barriers to international trade are open or given fewer restrictions to allow or encourage free trade between themselves. Moreover, it also allows them to trade among themselves and prevent the non-members from participating in any economic trade with the member nations.

Thus, the correct answer is option B.

b) State the minimum monthly income and hourly wage per worker needed to cover monthly expenses for the family you used in part a. Then, explain how to calculate the hourly wage based on the monthly income and state the hourly wage. Assume that each full-time worker works four 40-hour work weeks per month, and each part-time worker works two 40-hour weeks per month.

Answers

Answer:

Minimum monthly income for a full-time employee[tex]= \$ 7,846.40[/tex]

Minimum monthly income for a part-time employee[tex]= \$ 7,846.40[/tex]

Per hour for a full-time employee[tex]=\$49.04[/tex]

per hour for a part-time employee[tex]=\$98.08[/tex]

Explanation:

To accurately answer this question, let's review the facts provided.

A family of two adults and three children in the Modesto metro region pays [tex]\$ 7,846[/tex] a month.A full-time worker is someone who works 40 hours per week for 4 weeks each month.A part-time worker is someone who works 40 hours a week for 2 weeks a month.

Consider calculating the worker's minimum monthly income as well as his or her average hourly compensation.  

Hourly wage of a full-time worker:

[tex]= \frac{Monthly\ costs}{160}=\frac{7,846}{160}=\$ 49.04[/tex]

Minimum monthly income for a full-time worker: [tex]= Hourly\ wage \times 160=\$ 7,846.40[/tex]

Hourly pay for a part-time worker:

[tex]=\frac{Monthly\ costs}{80}=\frac{7,846}{80}=\$98.08[/tex]

Minimum monthly income for a part-time worker:[tex]= Hourly \ wage \times 80=\$ 7,846.40[/tex]

I am planning to go to universal studios Florida with my friends we are a 15-16 year age group, is their any way we can go inside without supervision?

Answers

yes i believe so try it out

When there are economies of scale, (1pts) Question 12 - When there are economies of scale, Select d) output does not affect per-unit costs as your answer d) output does not affect per-unit costs Select a) per-unit costs increase as output increases as your answer a) per-unit costs increase as output increases Select b) per-unit costs decrease as output increases as your answer b) per-unit costs decrease as output increases Select c) per-unit costs are constant as output increases as your answer c) per-unit costs are constant as output increases

Answers

Answer:

per-unit costs decrease as output increases

Explanation:

In simple words, Economies of scale can be understood s the cost benefits that businesses receive as a result of their size of operation. As the expense per unit of production decreases because scale increases. Because expenses are dispersed among a greater quantity of items this occurs.

Thus, from the above we can conclude that the correct option is B.

An investor has $150,000 to invest in two types of investments. Type A pays 5% annually and type B pays 6% annually. To have a well-balanced portfolio, the investor imposes the following conditions. At least one-third of the total portfolio is to be allocated to type A investments and at least one-third of the portfolio is to be allocated to type B investments. What is the optimal amount that should be invested in each investment

Answers

Answer:

Investment in A $50,000

Investment in B $100,000

Explanation:

The total amount available for two investments is $150,000. There are two different investment options available. Type A has 5% annual return and Type B has 6% annual return. The objective equation will be;

0.05A + 0.06B [tex]\leq[/tex] 5.5%

One third should be allocated to investment A and investment B.

0.33A + 0.33B [tex]\geq[/tex] 0

The risk factor of investments is assumed to be equal then investment B provides more return than investment A.

Investment in A = $150,000 * 0.334 = $50,000

Investment in B = $150,000 * 0.667 = $100,000

Jay Bird is a partner in Soundview Partnership. The adjusted basis of his interest is $19,000, of which $15,000 represents his share of partnership liabilities. Jay's share of the partnership's unrealized receivables is $6,000. The partnership has no substantially appreciated inventory items. Jay sold his partnership interest for $28,000 cash plus $15,000 of his liability relief. What is the amount and character of his gain

Answers

Answer:

Ordinary income of $6,000; Capital gain of $18,000

Explanation:

Calculation to determine the amount and character of his gain

First step is to calculate the The total gain on the sale of his partnership

Using this formula

Total gain on the sale of his partnership = ( Cash + Relief of his share of liabilities -Basis )

Let plug in the formula

Total gain on the sale of his partnership=$28,000+$15,000+$19,000

Total gain on the sale of his partnership=$24,000

Now let determine the amount and character of his gain

The UNREALIZED RECEIVABLES amount of $6,000 will be the ORDINARY INCOME while the remaining amount of $18,000 Calculated as ($24,000-$6,000) will be the CAPITAL GAIN.

Therefore the amount and character of his gain will be: Ordinary income of $6,000; Capital gain of $18,000

Externalities may prevent competitive markets from operating efficiently because A. consumers may buy goods in the black market. B. market prices may reflect the activities of consumers or producers on others. C. the market may goods that generate externalities on others. D. the market may goods that generate externalities on others. E. producers may sell goods outside of the market.

Answers

Answer:

D. the market may oversupply goods that generate negative externalities on others.

Explanation:

A product can be defined as any physical object or material that typically satisfy and meets the demands, needs or wants of customers. Some examples of a product are mobile phones, television, microphone, microwave oven, bread, pencil, freezer, beverages, soft drinks, radio, table, etc.

In Economics, an externality could either be positive or negative depending on its effect on a third party.

A positive externality arises when the production or consumption of a finished product or service has a significant impact or benefits to a third party that isn't directly involved in the transaction.

On the other hand, a negative externality arises when the production or consumption of a finished product or service has a negative effect and/or impact (cost) on a third party.

This ultimately implies that, an externality is typically an unwarranted cost or benefit by a manufacturer or producer of goods and services that eventually affects a third party.

On a related note, externalities may prevent competitive markets from operating efficiently because the market may oversupply goods that generate negative externalities on others. Some examples of a negative externality is John declining to buy his favorite candy due to an increase in its price, a manufacturing plant that causes noise and pollution to the people living around where it is situated, etc.

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