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egoroff_w [7]
2 years ago
8

Suppose that smoking creates a negative externality. If the government imposes a per-cigarette tax equal to the per-cigarette ex

ternality, then Group of answer choices the after-tax equilibrium quantity of cigarettes smoked will be less than the socially optimal quantity of cigarettes smoked. the after-tax equilibrium quantity of cigarettes smoked will be greater than the socially optimal quantity of cigarettes smoked. the after-tax equilibrium quantity of cigarettes smoked will equal the socially optimal quantity of cigarettes smoked. There is not enough information to answer the question.
Business
1 answer:
lapo4ka [179]2 years ago
4 0

The after-tax equilibrium quantity of cigarettes smoked will equal the socially optimal quantity of cigarettes smoked. The correct option is C.

<h3>What is the externality of smoking?</h3>

The externalities of smoking refers to the costs imposed by smoking on people other than smokers themselves, in particular through the health effects of passive smoking and the effects of smoking on health care costs and productivity.

Therefore, The after-tax equilibrium quantity of cigarettes smoked will equal the socially optimal quantity of cigarettes smoked. The correct option is C.

Learn more about externality of smoking:

brainly.com/question/17093736

#SPJ1

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Answer:

False

Explanation:

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e-lub [12.9K]

Answer:

(A) 1,200 Margin of Safety_{units}

(B) 330,000 Margin of Safety_{usd}

(C) Margin of Safety 40% of Sales

Explanation:

(A)

Sales \: Revenue - Variable \: Cost = Contribution \: Margin

275 - 150 = <u>125 CM per unit</u>

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\frac{225,000}{125} = 1,800 = Break\: Even\: Point_{units}

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3,000 - 1,800 = 1,200 Margin of Safety_{units}

HOW? we Calculate the contribution per unit. Then the BEP in units and with that the margin of safety in units.

(B)

\frac{Contribution Margin}{Sales Revenue} = $Contribution Margin Ratio

125/275 = 0.45454545 = <u>5/11 CM ratio</u>

\frac{Fixed\:Cost}{Contribution \:Margin \:Ratio} = Break\: Even\: Point_{dollars}

225,000/(5/11) = 495,000 BEP USD

{current \:sales - BEP_{USD} = margin \: of \: safety

825,000-495,000 = 330,000 Margin of Safety_{usd}

HOW? we Calculate the contribution ratio by dividing CM over sales. Then the BEP in dollars and with that the margin of safety in dollars.

<em><u>Important:</u></em> When posible to avoid rounding errors express as fraction iof posible

(C)

\frac{current \:sales - BEP_{USD}}{current \:sales} \times 100 = margin \: of \: safety

\frac{330,000}{825,000} \times 100 = margin \: of \: safety

Margin of Safety 40%

8 0
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Explanation:

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8 0
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Able Towing Company purchased a tow truck for $90,000 on January 1, 2012. It was originally depreciated on a straight-line basis
attashe74 [19]

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$14,620.00

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For able towing, depreciation  expenses for 2012 and 2013 will be

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Depreciation will be $72,000 /10 years which will be $7200 per year

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At the beginning of 2014, the book value will be $90,000 - $14,400=$ 75,600

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Depreciable amount is $75,600- $2,500=$73100

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The depreciation rate for 2014 is  $73,100 /5 years

=$14,620.00

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Which of the following is most likely used by a seller to target an impulse buyer? a. contest b. coupon c. display d. rebate Ple
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