The greater the magnitude of the external benefits of production, a. The larger is the deadweight loss from underproduction. b
. The greater would be the optimal tax. c. The less the private market solution would deviate from the socially efficient level of output. d. All of the above are true.
External costs happen if during production or consumption of a good or a service there is a negative effect on another party. The existence of this can bring about market failure. In the presence of externalities social benefit costs are a combination of private costs and also external benefits of production.
All of the options a, n and c are true so d is the answer here.
D. A limited liability company because he will only be liable for what he has invested in the business. His personal assets will be protected, and he can be taxed like a sole proprietorship.
The gross margin ratio is a percentage resulting from dividing the amount of a company's gross profit by the amount of its net sales. In this case it would be 118,350/466,300 = 25.38%