Peartree Company Provides the Following Data

question 112

Essay

Peartree Company provides the following data:
Additional information:
How much is the days in inventory ratio for 2014?
A)252.2
B)176.3
C)0.008
D)129.4

• A)252.2
• B)176.3
• C)0.008
• D)129.4

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Definitions:

Externalities

Costs or benefits that affect parties who did not choose to incur those costs or benefits, often leading to market inefficiencies.

MSB

Marginal Social Benefit, which refers to the additional benefit society gains from consuming one more unit of a good or service.

MSC

MSC stands for Marginal Social Cost, which is the total cost to society of producing an additional unit of a good or service, including both private and external costs.

Coase Theorem

An economic theory that suggests that if property rights are clearly defined and transaction costs are negligible, private negotiations will lead to the efficient resolution of disputes regardless of the initial allocation of rights.