Answer:
The correct option is D
Explanation:
External cost is the form of an expense which occur while consuming or producing the goods and services that imposes the cost or expense ( with negative effect) on the third party.
If there are the external costs while consuming the good, then the social costs would be greater than the private cost.
So, the external cost is defined as the cost that is imposed without any compensation on someone other than the person who cause or incur it.
Answer and Explanation:
a. The crabs are a Common Good. They means can run out of supply if their use gets too much by society. Therefore, the decline of the Alaska king crab fishery can be explained by stating that the plenty types of boats such as those from California and Japan, has caused people to overfish, excessive fishing has brought about a decline in the supply of crabs.
b. There are 2 ways to avoid this
1. fishing permits have to be sold to the fishermen coming to fish for the crabs. Then the persons with the highest willingness to pay will come and buy the permits to fish.
2. Issuing just a particular amount of permits this would cause the fishermen to trade these permits. These open-market strategies have proved to be effective in organizing economic activity and are good stimulators in an economy.
c. They have been successful because regulations have been placed on fishing by the government. Also, if there are restrictions on other countries using up their spots and Canadians are the only ones fishing salmon, then there will be reduction in the decay rate of the population of the salmon, the salmon can easily repopulate, then Canadians would be able to come back the next year to fish again..
$700 at any given time, but that is presuming that you have paid your monthly premiums every month without fail until the accident occurs.
Answer:
Option (A) is correct
Explanation:
Given that,
Free cash flow in Year 3, FCF3 = $40 million
FCF to grow at a constant rate, g = 5%
Weighted average cost of capital, WACC = 10%
Cost of equity = 15%
Therefore,
Horizon Value at year, t = 3:
= $ 840
