Answer:
a) loss caused to fisheries by pollution is an externality. B) Graph is attached
Explanation:
a) Externality is the cost benefit or loss to a 3rd party due to any activity that is not under its control. An exampe is pollution. In this scenario, losses to fisheries resulting from pollution by surf factory is an externality over. The pollution created by surfboard factory is not under the control of fisheries.
b) Graph is attached. As the production increases, Marginal Private Cost increases and Marginal Social Benefit decreses. Beyond Q2, Government intervention is requried
Answer:
The opportunity cost for a year will be $240,000.
Explanation:
The opportunity cost of any decision is the second-best alternative that is given up or sacrificed.
Here, the manager has a farm of 100 acres of land.
If he sells it to a developer for $40,000 per acre, he will get $4,000,000 for the whole land.
He can invest this amount and get an interest of 6% per year.
The opportunity cost of keeping the farm to the manager himself will be
= 6% of $4,000,000
= 
= $240,000
Answer:
$120,820
Explanation:
The calculation of interest capitalized for 2020 is shown below:-
Date Expenditure Weight Average
02-Jan-20 $607,000 12 ÷ 12 $607,000
01-Sep-20 $1,803,600 4 ÷ 12 $601,200
31-Dec-20 $1,803,600 0 ÷ 12 $-
Accumulated
Expenditures $4,214,200 $1,208,200
Interest Capitalized for 2020 = Total Average × Percentage of construction loan
= $1,208,200 × 10%
= $120,820
So, for computing the interest capitalized for 2020 we simply multiply the total average with percentage of construction loan.
Answer:
False
Explanation:
The expected value of each course of action in a decision tree is not determined by starting at the beginning of the tree, instead it is a process because you need to make a desition and in some extend you espect to have some results but some of them are uncertain or unespected. in this kind of scheme Squares represent decisions, and circles represent uncertain outcomes. Then you need to calcule the desition nodes giving each option a cost or value, This will give you a value that represents the benefit of each decision. at the end calculating choose the option that has the largest benefit, and take that as the decision made. This is the value of that decision node.
Answer:
Portfolio weight - Stock A = 46.473%
Portfolio weight - Stock B = 53.527%
Explanation:
The weightage of portfolio refers to the amount of investment in each stock in the portfolio expressed as a percentage of total investment in the portfolio. The weightage of portfolio can be calculated by as follows,
Portfolio weightage = Investment in Stock A / Total Investment in Portfolio +
Investment in Stock B / Total Investment in Portfolio + ... +
Investment in Stock N / Total Investment in Portfolio
Total investment in portfolio = 190 * 95 + 165 * 126 = 38840
Investment in Stock A = 190 * 95 = 18050
Investment in Stock B = 165 * 126 = 20790
Portfolio weight - Stock A = 18050 / 38840 = 46.473%
Portfolio weight - Stock B = 20790 / 38840 =53.527%
