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Economics, Accounting & Business: Post your doubts here!

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As per my knowledge bridges are public goods, not pure piblic good. So private firm will build and operted and charge for it so it will now be private good no more public good. Consumers surpluse relates to consimer willingness that what is the maximum he can pay...but conumer might use other routes or for public good free rider problem exist if it starts to charge for the bridge net benifits to society like to decline...
Tell me the year and session

sorry din get you.
 
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the question clearly states, private company would charge the public to use the bridge, so the public would have to pay, before it can benefit from the new bridge, that is, they can be easily excluded,
imagine it like a toll booth, only who pay can use the road,
rest b and c dont make sense, so must be a , although i am not sure why consumer surplus cannot be obtained, maybe the government set the price
hope this helps
thanks for the er.
but i still dont understand the A part.
 
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I am hoping that absorption costing comes in Accounts p2 instead of marginal costing. Ufffffffffffff I hate Accounts
 
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when it is index linked it means that the price of the asset or the money value rises in line witht the rate of inflation. therfore the money value risrs.now as you knw real value is the value after inflation hs been deducted from the money value . hence the REAL value remains the same. hope i helped . :)

Thank you :)
I was just wondering if the "non interest bearing asset" would have any impact on our answer.
Are there like any occasions that the real value could actually rise??
 
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sorry din get you.

Examiner Report says about Question 16

Question 16 proved a problem, with the largest proportion of candidates, including some of the higher performing candidates, preferring option D to the correct option A. The nature of the operation of a bridge is not non-excludable as the existence of many toll bridges illustrates, therefore this would not prevent private firms from earning a profit from building and operating the bridge.
 
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Thank you :)
I was just wondering if the "non interest bearing asset" would have any impact on our answer.
Are there like any occasions that the real value could actually rise??

yes it does affect. if the interest earned on the asset increased by the same rate as that of inflation then its money value and real vaue will increase.
but in this case no interest is earned on the asset.
 
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/how exactly does international trade improve producion possibilities i.e. shift the PPC outward ??
 
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partnership changes and company account
these are the new topics for accounts right?
is there any papetpaper for them, i know there are questions in p4, but some easy as level questions
these are the partnership questions from paper 4 they are not very hard just try to understand them as they are really good for practice
winter 2007 - paper 4 - question 1
winter 2010 - paper 4 - question1
summer 2008 - paper 4 - question1
 
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/how exactly does international trade improve producion possibilities i.e. shift the PPC outward ??
the ppc shifts outwards because of the imports
the curve shows wht maximum can be produced but if u import the supply of the goods in the country increases and therefore shifting it outwards
 
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Hi,
The question talks about income elasticity of demand and NOT PED. Option A talks about PED. And as you know according to YED a negative result would mean that its an inferior good. Hence, the answer should be D.
oh yeah, i forgot that, thankyou
 
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hey, can someone please explain to me what net investment income is?
Also if a person invests in another country, whats the effect on short term current account of both countries?
 
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Country | X | Y |
rice | 9 : 1 |
wheat | 6 : 1 |

ideal trade (w.r.t wheat) = (9+6)/6 = 2.5 rice
Ans: C. 1 wheat = 2.5 rice

hey dude can u explain me why did u add both of them....is this some formula....plzz explain me na...god bless u...
 
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Hey guys, please help in this question and its accounts
A company has total production costs of $6000 to make 10000 units and $13000 to make 24000 units. What is its total cost to make 20000 units?
A. $1000
B. $10000
C. $11000
D. $12000
 
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the ppc shifts outwards because of the imports
the curve shows wht maximum can be produced but if u import the supply of the goods in the country increases and therefore shifting it outwards
alright thanks
 
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29 Other things being equal, what will happen if a British company raises the sterling (£) price of
goods it sells to Pakistan by the full extent of a depreciation of sterling against the Pakistan
rupee?
A The demand for the company’s goods will fall in Pakistan.
B The company’s earnings in Pakistan will remain constant in pounds sterling.
C The company’s earnings in Pakistan will remain constant in Pakistan rupees.
D The profit margin on sales to Pakistan will decline.
correct answer is c
 
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