Answer:
Tradable permits
Explanation:
A tradable permit is a term that describes a market-based technique that provides the government with the chance or power to curb negative externalities produced by a group of companies.
In this situation, permits are traded among companies, whereby a company that has reduced production of the externality can trade permits to companies that are unable to make such reductions and are ready to pay for the permits.
Reason to recommend this Approach its policy:
It has been observed that, in every place where this approach or policy is used, the market for permits obtains the desired effect that is more profitable and productive for society
Answer:
Value Added = Value of Output - Intermediate Consumption = Final Goods . Value
Explanation:
This can be explained with an example:
A produces flour & sells it to Grocer for Rs 100. Grocer produces Wheat & sells it to Baker for Rs 150. Baker produces bread & sells it to Consumers for Rs 200.
Value of Final Product (Used by end consumers) i.e Bread = Rs 200.
However if considering total Value Of Output including all value added at each stage = 100 + 150 + 200 = 450. This is Overestimated value of Final product Bread, because of 'Double Counting' - Grocer's wheat includes the intermediate good (good purchased for further resale/reprocessing) value of flour and Baker's bread includes value of Wheat & flour intermediate products both.
This problem can be solved by: Calculating Value Added (by subtracting intermediate consumption) at each stage & then summing it to get the Final good value.
In this case: Farmer's Value Added = VO - IC = Flour Value - 0 = 100 .
Grocer's Value Added = VO - IC = Wheat - Flour Value = 150 - 100 = 50
Baker's Value Added = VO - IC = Bread - Wheat Value = 200 - 150 = 50
Adding value added by all these 3 we get , 150 + 50 + 50 = 200 i.e equal to final good bread value 200.
Answer:
<u>B) Forming alliances and partnerships with local companies in every country market where the company opts to compete, so as to facilitate use of an act global, think local strategic approach</u>
Explanation:
This is usually not the first or primary strategy that may be employed by a company. For example, a new company that has a lower market reach may not consider going to forming alliances and partnerships with local companies in every country market because of its limited finances.
However, a bigger company like Coca-cola wanting to compete may use this strategy.
Sarah has an absolute advantage in the PRODUCTION OF MUGS. This is because Sarah can produce 32 mugs while Charles in comparison can only produce 25 mugs.
Absolute advantage refers to the capacity of a country or a company or a person to execute a particular economic activity more efficiently than others. Someone who has an absolute advantage will be able to produce a particular good or service at a greater quantity than his competitors using the same resources. In the scenario given above, it can be seen that Sarah is able to produce more mugs efficiently more than Charles in six hours period.
It would be an increase of $6.000 as <span>the effect in net income ($15 selling price less $13 variable cost (the original $12 plus the $1 shipping cost)) or $2 per scale. </span>