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Mashcka [7]
3 years ago
6

Suppose the U.S. National Marine Fisheries Services (NMFS) is considering implementing one of the two policies on fishers in the

Gulf of Mexico with an objective to reduce sea turtle bycatch.
Policy A: Regulation – an allowable bycatch standard (number of turtles) for each fisher. If the fisher violates the bycatch standard (i.e., ends up catching more turtles than the standard allows) at the end of the fishing season, he has to pay a lump sum fine.
Policy B: A bycatch tax on each bycatch (i.e., each turtle caught).

Let us assume NMFS has a perfect monitoring system to see how many turtles are being caught.

If Policy A is implemented, each fisher can either meet the standard by adjusting his fishing behavior. Or, he can pay the fine and harvest as much he wants to maximize his profits without worrying about sea turtle bycatch. If the fisher meets the standard, his profit is $4500 and NMFS benefit is 800 units (think of it as a benefit to society from reduced sea turtle bycatch). If the fisher chooses to pay the fine, fisher’s profit is $3000 and NMFS benefit is $500 (no benefit from reduced turtles but NMFS can use $500 for conservation efforts to protect turtles).

If Policy B is implemented, the fisher can either (i) adjust his fishing behavior, stay away from sea turtles and not pay taxes, or (ii) save on the cost of altering his fishing choices but pay taxes. In reality (from what we saw in class), fishers will typically choose to abate till the efficient level and then pay tax for the remaining amount. Abstract from this scenario for now and construct your tree using the options given to you in the problem. If fisher chooses to abate, firm profit is $3200 and NMFS benefit is $400. If the fisher chooses to pay taxes, firm profit is $3600 and NMFS’s benefit is $450.

What will be the subgame perfect Nash Equilibrium (SPNE) strategies for NMFS and fisher?

A. NMFS will choose policy A (regulation). If NMFS chooses policy A, fisher will choose to pay the fine. If NMFS chooses policy B, fisher will choose to adjust his fishing behavior.
B. NMFS will choose policy B (bycatch tax). If NMFS chooses policy A, fisher will choose to pay the fine. If NMFS chooses policy B, fisher will choose to adjust his fishing behavior.
C. NMFS will choose policy A (regulation). If NMFS chooses policy A, fisher will choose to meet the standard. If NMFS chooses policy B, fisher will choose to pay the bycatch tax.
D. NMFS will choose policy B (bycatch tax). If NMFS chooses policy A, fisher will choose to meet the standard. If NMFS chooses policy B, fisher will choose to pay the bycatch tax.
Business
1 answer:
enot [183]3 years ago
7 0

Answer and Explanation:

A. NMFS will choose policy A (regulation). If NMFS chooses policy A, fisher will choose to pay the fine. If NMFS chooses policy B, fisher will choose to adjust his fishing behavior.

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Which statement below best describes the accounting equation? Multiple Choice The change in retained earnings equals net income
8_murik_8 [283]

Answer:

The correct answer is Resources of the company equal creditors' and owners' claims to those resources.

Explanation:

It can be used to determine that the income or income of the consumer is exactly equal to the expense (purchase) of goods, for the determined period of consumption. In other words, by adding the value spent on the acquisition of goods "x" and goods "y". To have such values it is enough to multiply the number of possible units to acquire - in each of the points - by their respective price and then add them; This can be done at any point in the price line.

4 0
3 years ago
Consider the owner of a local boutique. She is deciding if she should upgrade the storage and display containers. The total cost
miv72 [106K]

Answer:

a) $3077

b) The owner should make this investment because the marginal benefit is greater than the marginal cost

Explanation:

Given data :

Total cost = $2000

depreciation rate = 8% per year

expected increase in revenue (CF ) = $400

interest rate = 5%

a) Determine the present value of the stream of revenue due to the upgrades

= CF / ( 1 + r ) ^t      where ( 1 + r )^t = 13%

= 400 / 13%

= $3077

b) The owner should make this investment because the marginal benefit is greater than the marginal cost

8 0
2 years ago
What is savings?, How can you save in a bank? And why is it important?
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Explanation:

Savings are the money one has saved, especially through a bank or official scheme.

You can save in a bank by frequently depositing money into a bank account.

Savings are important for the availability of money during emergencies or to avoid going into debt to pay for your necessities.

3 0
3 years ago
A bond with a maturity value of $100,000 has a stated interest rate of 8 percent. Interest is paid annually. The bond matures in
Mademuasel [1]

Answer:

$87,710.87

Explanation:

In this question, we use the present value formula which is shown in the spreadsheet.  

The NPER represents the time period.

Given that,  

Future value = $100,000

Rate of interest = 10%

NPER = 10 years

PMT = $100,000 × 8% = $80 00

The formula is shown below:

= -PV(Rate;NPER;PMT;FV;type)

So, after solving this, the answer would be $87,710.87

5 0
3 years ago
You are a freshman in college and are planning a trip to Europe when you graduate from college at the end of four years. You pla
aksik [14]

Answer:

We will have $3227 at the end of 4 years.

Explanation:

In this case we are saving money each year starting with $650 in the first year, $670 in the second. $670 in the third and $830 in the last year which means the $650 saved in the first year will earn interest for 4 years, $670 for 3 years , then $670 for 2 years and $830 for 1 year. Now we have to find out the ending amount of each payment and add them up.

Future Value = Present value*(1+Interest rate)^Number of years.

FV 1st year savings=650*(1.0570)^4=811

FV 2nd year savings= 670*(1.0570)^3=791

FV 3rd year savings = 670*(1.0570)^2=748

FV 4th year savings= 830*(1.0570)^1=877

Add them all up to find how much will we have at the end of four years

=$3227

6 0
3 years ago
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