Answer:
a. the cost of reducing it's existing pollution by one unit.
Explanation:
Marginal cost refers to the addition to total cost when one more unit of output is produced. Marginal cost in the given case would refer to the additional cost incurred for reducing the current pollution level by one unit.
In the given case, a firm is charged $250 for each unit of pollution emitted under the pollution tax option.
It is also stated that all the firms experience increasing marginal costs of pollution reduction.
This means, as additional units of pollution are reduced, the additional costs would go on increasing.
If a firm finds that, reducing 1 unit of pollution from the current level costs it equal or more than $250, it will opt to pay $250 since, for each subsequent unit of pollution reduction, the additional costs would rise.
Answer:
Inelastic
Explanation:
Inelastic demand is when the buyer's demand does not change as much as the price changes. When price increases by 20% and demand decreases by only 1%, demand is said to be inelastic.
Inelastic demand in economics is when people buy about the same amount, whether the price drops or rises. This situation happens with things that people must have, like gasoline and food. Drivers must purchase the same amount even when the price increases.
Answer:
DR Cash $599,000
CR Notes Payable $599,000
Explanation:
As this is the entry for the issuance of the note, interest will not be recorded as it is incurred as during the loan period.
Entry will be;
Date Details Debit Credit
Jan 1 Cash 599,000
Notes Payable 599,000
The first step that an investor should take before beginning to invest should be to establish investment objectives.
