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Suppose the government wants to increase farmers’ incomes. Why do price supports or acreage limitation programs cost society more than simply giving farmers money?
Price acreage and supports limitations cost society more than the dollar cost of these programs as the higher price that results in either case will decrease quantity demanded and hence consumer surplus, leading to a deadweight loss since the farmer is not able to capture the lost surplus. Giving the farmers money does not result in any type of deadweight loss, but is merely a redistribution of surplus from one group to another.
What are retained earnings? Why are they important? Retained earnings denote the sum of all the earnings obtainable to common stockholders of a business throughout its whole h
a) An approx. 3% defect rate (i.e. 0.03 x 300m units) = 9m units per year. b) A apparent definition of Quality Assurance should be awarded, e.g. the management process of guaran
What can be the reason for the negative synergistic gains for British acquisitions of U.S. firms? Negative synergies for British acquisitions of U.S. firms (united state firms) m
When a borrower uses repo market for fund financing, he has to deliver the securities to the lender. One way to do this is to deliver the collateral to the lender
External Financing with Same Cost of Capital and Same Proportions as Existing: If a firm raises new capital funds in the same proportion as at present and at the same specific cos
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What are the negative consequences of a company holding too much cash? A company holding so much cash would be giving up the opportunity to invest much more in income producing a
Q. Define leverage? Meaning of Leverage: - The dictionary significance of the term leverage refers to 'an increased means of accomplishing some purpose'. For instance leverage
nd held it until it matured, what annual rate of return would she have earned? (Do not round intermediate calculations and round your final answer to 2 decimal places. (e.g., 32.16
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