A plastics factory emits water pollutants into a nearby river. The marginal private cost of producing plastics is constant, the marginal external cost of the pollutants increases with the quantity of plastics, the demand for plastics is downward sloping. What happens to the socially optimal level of output and market price if the marginal external cost curve shifts upward? A) Optimal price and quantity decrease.
B) Optimal price increases, optimal quantity remains unchanged.
C) Optimal price increases, optimal quantity decreases.
D) Optimal price and quantity decline.
Answers
As the marginal external cost curve rises, it suggest that marginal returns are falling. Therefore, Optimal price increases, optimal quantity decreases.
So, the correct option is C.
When one factor of production increase while the others remain constant, productivity decreases. This is known as diminishing marginal return.
The decline in productivity levels in this scenario is a result of the marginal external cost of pollutants growing with the quantity of plastics, resulting in optimal price increase and optimal quantity decrease.
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Answer:
The answer is option C) What happens to the socially optimal level of output and market price if the marginal external cost curve shifts upward is Optimal price increase and optimal quantity decrease.
Explanation:
when marginal external cost curve shifts upward, it indicates diminishing marginal returns.
A diminishing marginal return occurs when increases in one factor of production while the others remain constant results in increasingly reduced productivity.
In this scenario, the decrease in productivity levels is a response to the marginal external cost of the pollutants increasing with the quantity of plastics thereby causing optimal price increase and optimal quantity decrease.
Related Questions
Suppose the economy is initially in long-run equilibrium. Then suppose there is an increase in military spending. According to the model of aggregate demand and aggregate supply, what happens to prices and employment in the short run
1. How is inflation measured? Fill in the blanks to complete the passage about the CPI and the GDP deflator. The Consumer Price Index (CPI) and the GDP deflator are both price indices, so they both serve as measures of inflation. However, the CPI uses a smaller basket of goods. The GDP deflator aims to take into account all final goods and services, whereas the CPI only includes goods and services sold to –. So, for instance, prices on farm equipment are included in the – but not in the –.
One year ago, the Jenkins Family Fun Center deposited $3,800 into an investment account for the purpose of buying new equipment four years from today. Today, they are adding another $5,600 to this account. They plan on making a final deposit of $7,800 to the account next year. How much will be available when they are ready to buy the equipment, assuming they earn a rate of return of 6 percent
endrik is in charge of his company’s subsidiary in Beijing. He recently received a large bonus check because the subsidiary had exceeded sales expectations by 25 percent. What aspect of organizational architecture did Kendrik benefit from? Multiple Choice processes incentives forecasts norms
Answers
Answer:
If all the given description follows then:
You are a proponent of the WEAK form of the EMH.
Explanation:
Here, it has been given that:
I am believing that stock prices can reflect or show all the information about it which can be derived by examining the data related to it
i.e. The market trading data
This market trading data depicts the stock prices at the present and also the past values of all the stock prices. It also contains short interests, trading volume.
But i in this case doesn't think that its all correct as i think that the stock prices will reflect all the information's publicly and all the information's related to it fro the inside.
So, If all the given description follows then:
You are a proponent of the WEAK form of the EMH.
Weak form of EMH: The EMH weak form's depicts or supposes that the prices of the stock prices and their current values get reflected in full form.
Also allows to present all the security information of it.
It consists of all the present and current data and also the data related to the volume which have no connection with the information in future direction of the prices of security.
Answers
Income from continuing operations is $61,011 $41,226
What is the Vertical Analysis of Income Statement?
Current Year Previous Year
Revenues:
Admissions 20.28≅ 20.3 20.81 ≅20.8
Event-related revenue 29.61 ≅ 29.6 30.32≅30.3
NASCAR broadcasting revenue 43.80≅ 43.8 42.82≅42.8
Other operating revenue 6.31 ≅ 6.3 6.05≅6.1
Total revenues 100% 100%
Expenses and other:
Direct expense of events 21.01 ≅ 21.0 21.10≅ 21.1
NASCAR event management fees 29.61≅ 29.6 26.48≅ 26.5
Other direct expenses 3.94 ≅ 3.9 3.82≅3.8
General and administrative 35.84 ≅ 35.8 40.08≅40.1
Total expenses and other 87.72 ≅ 87.7 91.49≅ 91.5
Income from continuing operations 12.23% 8.51%
Vertical Analysis =(Income Statement Item/ Sales )*100
We prepared a comparative income statement for these two years in vertical form, stating each item as a percent of revenues.
Current Year Previous Year
Revenues:
Admissions $100,694 $100,798
Event-related revenue 146,980 146,849
NASCAR broadcasting revenue 217,469 207,369
Other operating revenue 31,320 29,293
Total revenues $496,463 $484,309
Expenses and other:
Direct expense of events $104,303 $102,196
NASCAR event management fees 133,682 128,254
Other direct expenses 19,541 18,513
General and administrative 177,926 194,120
Total expenses and other $435,452 $443,083
Income from continuing operations $61,011 $41,226
The complete question is Vertical Analysis of Income Statement The following comparative income statement (in thousands of dollars) for two recent fiscal years was adapted from the annual report of Speedway Motorsports, Inc., owner and operator of several major motor speedways, such as the Atlanta, Texas, and Las Vegas Motor Speedways. Current Year Previous Year Revenues: Admissions $100,694 $100,798 Event-related revenue 146,980 146,849 NASCAR broadcasting revenue 217,469 207,369 Other operating revenue 31,320 29,293 Total revenues $496,463 $484,309 Expenses and other: Direct expense of events $104,303 $102,196 NASCAR event management fees 133,682 128,254 Other direct expenses 19,541 18,513 General and administrative 177,926 194,120 Total expenses and other $435,452 $443,083 Income from continuing operations $61,011 $41,226 a. Prepare a comparative income statement for these two years in vertical form, stating each item as a percent of revenues. Enter all amounts as positive numbers. (Note: Due to rounding, amounts may not total 100%). Round your percentages to one decimal place.
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Final answer:
The comparative income statement for Speedway motorsports Inc. over several fiscal years gives insights into revenue, costs, and profit trends. Increasing revenues coupled with increasing costs might indicate a need for cost efficiency, while a higher rate of profit growth compared to revenues could suggest effective cost management.
Explanation:
The question refers to a comparative income statement of Speedway Motorsports, Inc., a major operator of motor speedways. A comparative income statement compares the income statements of a company across several fiscal years. This can provide valuable insights into how revenues, costs, and profits are developing over time, and thus give indications of how the company's business model is working and where there might be room for improvements.
For example, if Speedway Motorsports' income statements show increasing revenues but also increasing costs, it might indicate that they need to work on cost efficiency. Alternatively, if profits are increasing faster than revenues, it could suggest that their cost management is effective.
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Answers
Answer:
Therefore the amount in the bank after 14 years is $15826.33 (approx).
Explanation:
Compound interest: The amount of the principal is not same all year.
The principal of first year = The initial amount principal
Second year principal = Principal+ interest of first year
Third year principal = The principal of second year + interest of second year.
and so on....
The amount
Here principal = $7000
r = rate of interest = 6% = 0.06
n = Time = 14 year
Amount =
=$ 15826.33 (approx)
Therefore the amount in the bank after 14 years is $15826.33 (approx)
Answer:
The amount which the bank will pay after 14 years amounts to $15,826.33
Explanation:
The amount which is to be paid after 14 years is known as Future Value (FV), which is computed as:
Using the Excel formula of FV as:
=FV(rate,nper,pmt,pv,type)
where
rate is 6%
nper is number of years which is 14 years
PMT is monthly payment which is $0
PV is Present value which is -$7,000
Putting the values above:
=FV(6%,14,0,-7000,0)
= $15,826.33
Therefore, the future value which is to be paid after 14 years amounts to $15,826.33
Answers
Answer: $168,000
Explanation:
Cash balance at the end of the year = Cash Inflows - Cash outflows
Cash Outflows
= (Merchandise purchased - Account payables) + Salaries + Interest + Insurance
= (235,000 - 38,700) + 28,100 + 2,600 + 8,900
= $235,900
Cash Inflows
= (Sales - Accounts receivables) + Investment by partners + Amount borrowed
= (378,000 - 47,000) + 47,000 + 26,000
= $404,000
Cash Balance = $168,000
Note: The options are most probably for a similar question.
Answers
Answer:
3.8%
Explanation:
3 year bonds yielding 3.2%
6 year bonds yielding 5.0
Annual pay bond 4 years
Yielding bond+[(Annual pay bond- Bonds years)/bond years]×(Yielding bond-Yeilding bonds)
Let plug in the formula
Interpolating: 3.2% + [(4 - 3) / (6 - 3)] × (5.0% - 3.2%)
=3.2%+[1/3×(1.8%)]
= 3.2%+(0.33333×1.8%)
=3.2%+0.006
=0.032+0.006
=0.038×100
=3.8%
Alternatively,
Interpolating: 3.2% + [(4 - 3) / (6 - 3)] × (5.0% - 3.2%) =3.8%
In this case the analyst should estimate a YTM for the non-traded bond that is closest to: 3.8%
Answers
Please find schedule attached
Answer and Explanation:
1. Names of employees who are not from Department A00 include employees whose work department isn't A00 such as:
Michael Thompson, Sally Kwan, John Geyer, Irvin Stern etc(please refer to attachment)
2. Average of all employees salary = total employees salary /number of employees = $627415/25=$25096.6
3. There are 16 employees earning above the average salary of the employees, such as Christine Haas, Sally Kwan etc
4. There are 6 employees earning above $35000 such as Christine Haas, Michael Thompson, Sally Kwan, John Geyer etc
5. Ms. Haas currently makes $633000 yearly($52750 per month). If she makes $500000 per year then her salary per month will be $500000/12=$41666