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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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Gore Inc. recorded a liability in 2021 for probable litigation losses of $2 million. Ultimately, $5 million in legitimate warran
KengaRu [80]

Answer:

Gore is not required to make any accounting adjustments

Explanation:

Gore won't be required to make any accounting adjustments because the litigation loss is already $2,000,000 leading to him recording a liability in his account in which

$5 million in legitimate warranty claims were as well filed by his customers which is why he won't be making any further Accounting adjustment in 2021.

4 0
3 years ago
Dotterel Corporation uses the variable cost concept of product pricing. Below is cost information for the production and sale of
skad [1K]

Answer:

$11.2 per unit

Explanation:

The computation of the variable cost per unit is shown below:

= Variable direct materials cost per unit + Variable direct labor cost per unit + Variable factory overhead cost per unit + Variable selling and administrative cost per unit

= $4.34 per unit + $5.18 per unit + $0.98 per unit + $0.70 per unit

= $11.2 per unit

We simply added the entire variable cost per unit so that the accuracy per unit could be reached

3 0
3 years ago
Studies on a machine that molds plastic water pipe indicate that when it is injecting 1-inch diameter pipe, the process standard
Otrada [13]

Answer:

b. 0.67

Explanation:

UCL = 1 + 0.10

        = 1.10 inch

LCL = 1 - 0.10

       = 0.9 inch

standard deviation = 0.005 inch

mean = 1 inch

Cpk

= min[(UCL - mean)/(3*standard deviation) , (mean - LCL)/(3*standard deviation))]

= min[(1.10 - 1)/(3*0.05) , (1 - 0.9)/(3*0.05))]

= min[0.67 , 0.67]

= 0.67

Therefore, Theprocess capability index (Cpk) if the long-run process mean is 1 inch is 0.67

3 0
3 years ago
Market equilibrium Consider the demand function of tofu given by Qd = 150 – 10p + 5pb and the supply function of tofu given by Q
ser-zykov [4K]

Answer:

a) Qs = 50 + 20p - 7ps

= 50 + 20p - 7×(2)

= 50 + 20p - 14

= 36 + 20p

At equilibrium, Q_{d} = Q_{s}

So, 150 - 10p + 5p_{b} = 36 + 20p

So, 20p + 10p = 30p

= 150 - 36 + 5p_{b}

= 114 + 5p_{b}

So, p = (114/30) + (5/30)p_{b}

= 3.8 + 0.17p_{b}

Thus, p_{e} = 3.8 + 0.17p_{b}

Q = 36 + 20p

= 36 + 20(3.8 + 0.17p_{b})

= 36 + 76 + 3.4p_{b}

= 112 + 3.4p_{b}

Thus, Q_{e} = 112 + 3.4p_{b}

b) p_{e} = 3.8 + 0.17p_{b}

= 3.8 + 0.17×(5)

= 3.8 + .85

= 4.65

Q_{e} = 112 + 3.4_{b}

= 112 + 3.4(5)

= 112 + 17

= 129

c) Qd = 150 - 10p + 5pb = 150 - 10(2.5) + 5(5) = 150 - 25 + 25 = 150

Qs = 36 + 20p = 36 + 20(2.5) = 36 + 50 = 86

Thus, there is excess demand as Q_{d} > Q_{s}

d) New Q_{d}= 180 - 10p + 5p_{b}

= 180 - 10p + 5×(5)

= 180 - 10p + 25

= 205 - 10p

Now, new Q_{d} = Q_{s} gives,

205 - 10p = 36 + 20p

So, 20p + 10p = 205 - 36

So, 30p = 169

So, p = 169÷30

So, p_{e} = 5.63

Q = 205 - 10p = 205 - 10×(5.63) = 205 - 56.3 = 148.7

So, Q_{e} = 148.7

6 0
3 years ago
A certain company reorders envelopes when it stock drops to 15 boxes, although demand for envelopes during lead time is normally
marissa [1.9K]

Question: The options were not given in the question. here are the options;

a. 50%

b. 75%

c. 5%

d. 95%

e. 25%

Answer:

The correct option is D. 95%

Explanation:

ROP = demand during lead time + (Z * standard deviation of lead time demand)

15 = 10 + (Z * 3)

Z = 1.667

For Z = 1.667, service level is nearly 95%

6 0
2 years ago
Read 2 more answers
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