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ANEK [815]
3 years ago
11

The Filthy Chemical Company dumps 100 tons of pollutants every year in the Pristine Lake. The Trout Fishing Co., the only other

user of the lake, estimates that if Q tons of pollution were cleaned up every year its profits would rise according to the relation ∆???? = 10 ???? − 1 10 ???? 2 Filthy estimates it can clean the pollutants at a constant average cost of $2 per ton. (a) In the interest of efficiency, how much pollution should be cleaned up every year? (b) Suppose Filthy bought the Trout Co. How much would it clean up? What if Trout bought Filthy? (c) State the Coase Theorem. Does your answer to (b) confirm or deny the theorem? Explain briefly.

Business
1 answer:
Maurinko [17]3 years ago
4 0

Answer

The answer and procedures of the exercise are attached in the following archives.

Explanation  

You will find the procedures, formulas or necessary explanations in the archive attached below. If you have any question ask and I will aclare your doubts kindly.  

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Consider two neighboring island countries called Bellissima and Dolorium. They each have 4 million labor hours available per wee
liubo4ka [24]

Answer:

Bellisima's opportunity cost:  

  • Production of corn per million hours of labor = 8 / 16 = 0.5 pairs of jeans
  • Production of jeans per million hours of labor = 16 / 8 = 2 bushels of rye

Dolorium's opportunity cost:  

  • Production of corn per million hours of labor = 5 / 20 = 0.25 pairs of jeans
  • Production of jeans per million hours of labor = 20 / 5 = 4 bushels of rye

Dolorium has a comparative advantage int he production of rye while Bellisima has a comparative advantage in the production of jeans.

If both countries specialize:

  • Dolorium will produce 80 million bushels of rye.
  • Bellisima will produce 32 million pairs of jeans.

Total production of rye has increased by 12 million bushels.

Total production of jeans has increased by 9 million pairs.

6 0
3 years ago
Which one of these is covered by a specific type of insurance policy?
irina1246 [14]

Answer:

A.Off grid homes

Explanation:

Specific type of insurance policy covers the most common perils except those specifically excluded perils such as earthquake, flood, nuclear disaster, landslide.

OFF GRID HOMES refer to homes which are self-sufficient without reliance on  modern technology and public utilities. That means that this homes do not have access to electricity, gas, water, etc.

Therefore, these homes can be insured by a specific type of insurance policy.

4 0
3 years ago
Growth has which positive effect for businesses?
Crank

Answer:

A. It widens the area inside the frontier on a production possibilities

curve.

Explanation:

3 0
3 years ago
Convertible bondsa. have priority over other indebtedness.b. are usually secured by a first or second mortgage.c. pay interest o
zmey [24]

Answer:

d. may be exchanged for equity securities.

Explanation:

Convertible bonds

It is a debt security , which is fixed and which yields the  interest payments , but it can be converted to a predetermined number of the equity shares or common stock .

The bond to stock conversion can be done at a number of times during the life of the bond .

These bonds are mostly issued by the companies which have low credit ratings and have potential of higher growth .

4 0
3 years ago
Ahrends Corporation makes 46,000 units per year of a part it uses in the products it manufactures. The unit product cost of this
IgorC [24]

Answer: 49.10 pee unit

Explanation:

Direct materials = $14.30

Add: Direct labor = 23.90

Add: Variable manufacturing overhead = 3.00

Add: Avoidable overhead = 28.30 - 28.40 = 0.10

Avoidable cost = 41.10

The maximum amount that the company should be willing to pay an outside supplier per unit for the part if the supplier commits to supplying all 53,000 units required each year will be:

= 41.10 × 53000 + 424,000 / 53000

= 49.1 per unit

6 0
3 years ago
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