Answers
Answer:
As a result of the technology change, the price of pollution will be same as price of pollution with pollution permits.
The quantity of pollution with corrective tax will be lower than quantity of pollution with pollution permits.
Explanation:
The pollution permits are issued to reduce pollution by firms. The companies will reduce the pollution and will only be able to emit pollution up to certain limit. The price of pollution with corrective tax will be same as the price of pollution with pollution permits.
Final answer:
The change in technology will effect an increase in the price of pollution due to the increased cost of production factoring in the social cost of pollution, hence shifting the supply curve upward. The quantity of pollution will decrease as firms adopt cheaper technologies for pollution reduction influenced by the corrective tax policy and pollution permits.
Explanation:
The subject of your question is concerned with corrective tax policy and pollution permits in the context of a market economy under the influence of advances in technology. Under the original conditions before the social costs of pollution are taken into account, the equilibrium was met at a pollution price of $15 with a quantity of 440. However, once the external cost of pollution has been factored in, the supply curve shifts upward, creating a new equilibrium at a price of $30 and a quantity of 410, indicating an increase in the cost of pollution and a decrease in its quantity.
These policy instruments (corrective tax and pollution permits) induce companies to invest in technologies that reduce pollution higher costs of pollution as a result of the corrective tax motivate firms to seek cheaper technologies for pollution reduction. Those with less costly ways of lessening pollution will do so to reduce their tax expense, while those who would incur large costs in doing so would opt to pay the tax. The option of pollution permits introduces a marketplace where firms can purchase the right to pollute, the cost of which is again a motivator for firms to reduce pollution. Consequently, the demand for pollution permits among firms will influence their pricing. Firms that can reduce pollution at lower costs will do so the most. With no change in demand for pollution permits or corrective tax policies, the price of pollution will change as a result of the conditions set by these policies, and the quantity will change according to the adoption of more efficient technology.
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Related Questions
A labor contract provides for a first-year wage of $15 per hour, and specifies that the real wage will rise by 2 percent in the second year of the contract and by another 2 percent in the third year. The CPI is 1.00 in the first year, 1.09 in the second year, and 1.15 in the third year. What dollar wage must be paid in the third year
The independent cases are listed below that includes all items relevant to operating activities: Case A Case B Case C Sales revenue $ 65,000 $ 55,000 $ 96,000 Cost of goods sold 35,000 26,000 65,000 Depreciation expense 10,000 2,000 26,000 Salaries and wages expense 5,000 13,000 8,000 Net income (loss) 15,000 14,000 (3,000) Accounts receivable increase (decrease) (1,000) 4,000 3,000 Inventory increase (decrease) 2,000 0 (3,000) Accounts payable increase (decrease) 0 2,500 (1,000) Salaries and wages payable increase (decrease) 1,500 (2,000) 1,000 Compute cash flows from operating activities using the direct method. (Amounts to be deducted should be indicated with a minus sign.) Case A Case B Case C Cash Collected from Customers Cash Payments to Suppliers Cash Payments for Salaries and Wages Net Cash Provided by Operating Activities $ 0 $ 0 $ 0
An apparel manufacturing plant has estimated the variable cost to be $21 per unit. Fixed costs are $1M per year. Forty percent of its business is with one preferred customer and the customer is charged at cost(without profit). The remaining 60% of the business is with several differant customers and they are charged $40 per unit. Find. a.The break even volume for this job. b.The unit cost if 100,000 units are made per year. c.The annual profit for this quantity(100,000 units).
Bonds issued by the coleman manufacturing company have a par value of $1,000, which of course is also the amount of principal to be paid at maturity. the bonds are currently selling for $940. they have 10 years remaining to maturity. the annual interest payment is 10 percent ($100). compute the yield to maturity.
Answers
Answer:
Explanation:
The arrival rate (λ) = 20 customers per hour. Since the service times at the pump have an exponential distribution with a mean of 2 minutes, therefore the service rate (μ) = 60 / 2 = 30 customers per hour.
The probability of the no customers being in the system(P₀) is given as:
If no customer is in the system we can sell gasoline for $4/gallon to the next customer. The expected price p of gasoline is given by:
P = $3.665 per gallon
Answers
Answer:
Barney is not entitled to a loss deduction.
Explanation:
Barney is not qualified for a loss deduction. Barney cannot have any realization because the stock has not been sold or become worthless. If Barney's stock becomes worthless then generally he may deduct its tax basis in the stock as a worthless stock loss for the year in which the stock becomes worthless.
Answers
Answer:
140 pounds of tuna
Explanation:
Lago
- opportunity cost of producing 1 unit of oat = 20 / 5 = 4 pounds of tuna
- opportunity cost of producing 1 pound of tuna = 5 / 20 = 0.25 units of oat
Abuta
- opportunity cost of producing 1 unit of oat = 5 / 20 = 0.25 pounds of tuna
- opportunity cost of producing 1 pound of tuna = 20 / 5 = 4 units of oat
Lago should produce tuna while Abuta should produce oat. If they specialize:
- total production of tuna = 20 x 20 = 400 pounds
- total production of oat = 20 x 20 = 400 units
Lago trades 60 pounds of tuna in exchange for 60 units of oat, so it will have 140 pounds of tuna and 60 units of oat in total.
2. Interest owed on a loan but not paid or recorded (accrual) is $275.
3. There was no beginning balance of supplies and $550 of office supplies were purchased during the period. At the end of the period $100 of supplies were on hand.
4. Legal service revenues of $4,000 were collected in advance. By year-end $900 was still unearned.
5. Salaries incurred by year end but not yet paid or recorded amounted to $900.
Answers
Answer:
1. Debit Depreciation expense $1,340
Credit Accumulated depreciation $1,340
2. Debit Interest expense $275
Credit Accrued Interest $275
3. Debit Supplies expense $450
Credit Supplies Account $450
4. Debit Unearned Service revenue $3,100
Credit Service revenue $3,100
5. Debit Salaries expense $900
Credit Accrued Salaries $900
Explanation:
Depreciation is the systematic allocation of the cost of an asset to the income statement over the estimated useful life of that asset.
It is determined as the depreciable value of the asset over the estimated useful life of the asset where the depreciable value is the difference between the cost and salvage value of the asset
Mathematically,
Depreciation = (Cost - Salvage value)/Estimated useful life
It is recorded by debiting depreciation and crediting accumulated depreciation.
When interest is incurred as an expense but yet to be paid, it will be accrued for by Debiting Interest expense and crediting accrued Interest. The same applies to salaries incurred but yet to be paid.
When Supplies is purchased, Debit supplies and credit Cash/Accounts payable. As Supplies are used up, debit supplies expense (with the amount used) and Credit Supplies account.
Amount of supplies used up = $550 - $100
= $450
When a fee is received in advance for a service yet to be rendered, the revenue for such fee is said to be unearned. The entries required are
Debit Cash account and Credit Unearned fees or deferred revenue.
As the service is performed and the revenue is earned, debit Unearned fees and credit revenue.
Earned revenue = $4,000 - $900
= $3,100
Answers
Answer:
2014 Fixed Assets TO: 11.47
2015 Fixed Assets TO: 13.08
2106 Fixed Assets TO: 10.29
Explanation:
Fixed turnover ratio:
where:
2014 DATA
Profit: 120,119
Beginning 4960
Ending 9380
Average 7170
Inventory TO 16.75299861
2015 data
Profit: 163,500
Beginning 9380
Ending 15,620
FA TO 13.08
2016
Profit: 167,910
Beginning 15,620
Ending 17,000
Inventory TO 10.2949111
Answers
Answer:(a) $8,900
(b) -($4,200)
(c) -($13,100)
(d) -($13,100)
Explanation:
Given that,
Amount invested by shareholders = $230,000
Debt securities purchased for cash = $101,000
Received cash interest on securities = $8,900
unrealized holding loss on these securities = $13,100
(a) Net Income = $8,900(Cash interest received)
(b) Comprehensive Income = Net Income - unrealized holding loss
= $8,900 - $13,100
= -($4,200)
(c) Other Comprehensive Income = unrealized holding loss
= -($13,100)
(d) Accumulated other comprehensive income:
Ending Balance of other comprehensive income = Beginning Balance + During this year
= $0 + (-$13,100)
= -($13,100)