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Svetlanka [38]
3 years ago
12

Suppose the production of cotton causes substantial environmental damage because the pesticides used by cotton farmers often mak

e their way into nearby rivers and streams, and are very harmful to fish and other wildlife. If cotton farmers do not have to pay for the environmental damage caused by the pesticides used to grow cotton, then the market equilibrium price will be ______ and the market equilibrium quantity will be ______.A. inefficiently high; inefficiently low
B. inefficiently high; inefficiently high
C. inefficiently low; inefficiently high
D. inefficiently low; inefficiently low
Business
1 answer:
Sidana [21]3 years ago
6 0

Answer:

C. Inefficiently low; inefficiently high

Explanation:

This is a case of a negative externality. If the farmers were forced to pay the cost of this damage, the Marginal Private benefit of farmers will be less than the Marginal Total cost and then they would produce less and the price will be higher.

When farmers don't have to pay the external cost they produce at

PMB = PMC ,

(PMB is private marginal benefit and PMC is private marginal cost)

If they had to pay external costs this equation would be as,

PMB < PMC + External Cost.

This raises total cost for farmers and thus they produce less with cotton at higher prices, as they have higher costs this way.

Therefore without these costs, the prices will be inefficiently low and quantity inefficiently high.

Hope that helps.

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A Company just starting in business purchased three merchandise inventory items at the following prices. First purchase $80; Sec
gogolik [260]

Answer: $65

Explanation: Under the FIFO method, that is, first in first out method inventory is recorded on the assumption that the goods that were purchased first will also be sold first and the remaining inventory will have the latest purchased units.

So, in the given question the two units sold would be costing $80 and $95

Hence,

Gross profit = $240 - ($80 + $95)

                    = $65

3 0
3 years ago
g Suppose the Federal Reserve begins to increase the supply of money at an increasing rate. What impact would that have on GDP,
satela [25.4K]

Expansionary monetary policy shifts AD to the right.

<h3>What is Expansionary monetary policy?</h3>
  • Expansionary policy, often known as loose monetary policy, expands the availability of money and credit in order to stimulate economic growth.
  • During difficult economic circumstances, a central bank may use expansionary monetary policy to reduce unemployment and stimulate growth.
<h3>Impacts on GDP, unemployment, and inflation by the increase of supply of money:</h3>
  • The Federal Reserve begins to grow the money supply at an increasing rate.
  • The impact on GDP, unemployment, and inflation would be significant.
  • AD is shifted to the right by expansionary monetary policy.

Therefore, expansionary monetary policy shifts AD to the right.

Know more about Expansionary monetary policy here:

brainly.com/question/18939014

#SPJ4

8 0
2 years ago
A financial analyst is attempting to assess the future dividend policy of Environmental Systems by examining its life cycle. She
GrogVix [38]

Answer:

Consider the following calculations

Explanation:

A. Dividend per Share = Dividend Payout Ratio * Earnings Per Share

Putting the values given to calculate dividend per share we get,

Stages DPS = Payout Ratio * EPS DPS

Stage 1 =0.00*$0.30                         $0

Stage 2 = 0.13*1.95                         $0.25

Stage 3 =0.31 * $ 2.80                         $0.868

Stage 4 = 0.56*$3.40                         $1.90

b. Calculation of Investors After Tax Income from Cash Dividend:-

Cash Dividend = Number of Shares * DPS in Stage IV

= 290 * $ 1.90

= $552.16

After Tax Income = DIvidend ( 1 - Tax Rate)

= $ 552.16 ( 1- 0.15)

= $ 469.34

C:- In Stage II and Stage III for Growth & Expansion respectively, the firm is likely to utilise stock dividend or stock split.

5 0
3 years ago
Suppose the government increases the corporate income tax rate. this is
ExtremeBDS [4]
<span>part of a contractionary fiscal policy</span>
3 0
3 years ago
Effective delegation involves:
Afina-wow [57]

Answer:

The correct answer is C. Identifying the appropriate person for the task.

Explanation:

In the transfer of authority from a boss to a subordinate. Most organizations promote delegation of authority in order to provide maximum flexibility in meeting customer needs.

Additionally, the delegation allows people to move within an environment of freedom to contribute ideas that facilitate the performance of their work in the best possible way. By getting involved in this way at work, you get an individual satisfaction that generally becomes a better performance. When they refuse to delegate, managers end up doing the work themselves and underutilizing the capacity of their workers.

6 0
3 years ago
Read 2 more answers
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