Can someone be my friend?

Suppose that the U.S. government decides to charge cola producers a tax. Before the tax, 50 billion cases of cola were sold ever

Georgia [21]

Answer:

U.S. Tax Burden on Cola:

The amount of the tax on a case of cola is $4 per case. Of this amount, the burden that falls on consumers is $1 per case, and the burden that falls on producers is ___$3______ per case.

The effect of the tax on the quantity sold would have been larger if the tax had been levied on consumers.

a. True

b. False

Explanation:

The tax burden on consumers, which is represented by the difference in the price of cola from $5 to $6 per unit is $1 ($6 - $5). However, the cash received by producers reduced by $3 from $5 to $2. This shows that the total tax burden on both consumers and producers is $4 ($1 + $3).

This represents a total tax burden of $4 or about 67% based on the new selling price of cola or 80% based on the old selling price of cola.

"The effect of the tax on the quantity sold would have been larger if the tax had been levied on consumers alone. This because the price of cola would have increased to $9 per unit. Since the demand for cola in this instance is elastic, this change in price would have caused a more than 80% change in the quantity demanded.

4 0

3 years ago

The mission of the Securities and Exchange Commission (SEC) is to: a. PROTECT SHAREHOLDERS' RIGHTS BY MAKING SURE THAT STOCK MAR

lilavasa [31]

Answer:

b. PROTECT SHAREHOLDERS' RIGHTS BY MAKING SURE THAT STOCK MARKETS ARE RUN FAIRLY

Explanation:

The U.S (SEC) securities and exchange commission is an independent agency of the American government and is responsible for enforcing the federal security laws and rules and regulated the industry.

The SEC was created by the securities exchange act of 1934, mission as to protect the investors, maintain fair and orderly, and have an efficient market.

<u>Publishes quarterly and semi quarterly reports form the companies that are crucial for investors to make a sound decision when investing in the capital markets.</u>

8 0

3 years ago

The following data pertains to activity and maintenance costs for two recent years: Year 2 Year 1Activity Levels in units 12,000

iragen [17]

Answer:

Total cost= 0.75x + 6,000

Explanation:

Giving the following information:

Year 2:

Units= 12,000

Cost= $15,000

Year 1:

Units= 8,000

Cost= $12,000

To determine the cost formula, first, we need to calculate the unitary variable cost and fixed cost.

Variable cost per unit= (Highest activity cost - Lowest activity cost)/ (Highest activity units - Lowest activity units)

Variable cost per unit= (15,000 - 12,000) / (12,000 - 8,000)= $0.75 per unit

Fixed costs= Highest activity cost - (Variable cost per unit * HAU)

Fixed costs= 15,000 - (0.75*12,000)= $6,000

Fixed costs= LAC - (Variable cost per unit* LAU)

Fixed costs= 12,000 - (0.75*8,000)= $6,000

Now, the cost formula is:

Total cost= unitary variable cost + fixed cost

Total cost= 0.75x + 6,000

7 0

3 years ago

You have $140,000 to invest in a portfolio containing Stock X and Stock Y. Your goal is to create a portfolio that has an expect

dedylja [7]

Answer:

Amount investment in Sock Y = - $126,000

Beta of portfolio = 1.636

Explanation:

Data provided in the question:

Total amount to be invested = $140,000

Stock X Y

Expected return 14% 10%

Beta 1.42 1.18

Expected return of portfolio = 17.6%

Now,

let the weight invested n stock X be W

therefore,

Weight of Stock Y = 1 - W

thus,

( W × 14% ) + (1 - w) × 10% = 17.6 %

or

14W + 10% - 10W = 17.6%

or

4W = 7.6

or

W = 1.9

Therefore,

weight of Y = 1 - 1.9 = -0.9

Thus,

Amount investment in Sock Y = Total amount to be invested × Weight

= 140,000 × ( - 0.9 )

= - $126,000 i.e short Y

Beta of portfolio = ∑ (Beta × Weight)

= [ 1.42 × 1.9 ] + [ 1.18 × (-0.9) ]

= 2.698 - 1.062

= 1.636

6 0

3 years ago

Assuming suppliers produce 75 lawnmowers per week:

Irina-Kira [14]

Answer:C

Explanation: this quantity is allocatively inefficient because the marginal cost of producing the last lawnmower exceeds the marginal benefit to consumers.

6 0

3 years ago