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Arada [10]
3 years ago
5

In a market, demand is given by P = 100 − Q and the (private) marginal cost of production for the aggregation of all firms (the

industry supply curve) is given by MC = Q. Pollution by the industry creates external damages given by the (constant) marginal external cost curve MEC = 30.
(a) Calculate the output and price of if the industry operates under com petitive conditions without regulation.

(b) Calculate the socially efficient price and output of the industry.

(c) Calculate the deadweight loss due to operating at the competitive level of output rather than the socially efficient level of output.
Business
1 answer:
elena-14-01-66 [18.8K]3 years ago
4 0

Answer:

Market price , quantity = 50 , 50

Social price , quantity = 65 , 35

Deadweight Loss = 112.5

Explanation:

In perfectly competitive markets , optimal equilibrium is where :

[Marginal Revenue = Price] = [Marginal Cost]

[ MR = 100 - Q] = [MC = Q]  

100 - Q = Q

Q + Q = 100

2Q = 100 → Q = 100/2

Market Q = 50

P = 100 - Q →  P = 100 - 50

Market P = 50

Socially efficient markets are where : additional (external) cost or additional benefit is also used to determine socially optimum quantity

[ MR = 100 - Q] = [TC = MC + EC]

100 - Q = Q + 30

100 - 30 = Q + Q

2Q = 70 → Q = 70 / 2

Social Q  = 35

P = 100 - Q →  P = 100 - 35

Social P = 65

Deadweight Loss

1/2 [ (P2 - P1) (Q1 - Q2)]

1/2 [ (50 - 35) (65 - 50) ]

1/2 (15x15)]  → 1/2 (225)

Deadweight Loss = 112.5

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Selected operating data for two divisions of Outback Brewing, Ltd., of Australia are given below: Division Queensland New South
Svet_ta [14]

Answer:

1. Quuen Land Division

Margin 6.50%

ROI 11.70%

New South Wale Division Margin

Margin 3.50%

ROI 15.75%

2. New South wale Division

Explanation:

1. Computation for each division's margin, turnover, and return on investment (ROI)

QUUEN LAND DIVISION MARGIN

Using this formula

Margin =Net operating income/Total Sales

Let plug in the formula

Margin =$70,200/ $ 1,080,000

Margin=6.50%

QUUEN LAND DIVISION ROI

First step is to determine the Turnover using this formula

Turnover=Total sales/Average Asset

Let plug in the formula

Turnover= $ 1,080,000 /$600,000

Turnover =1.8 times

Now let determine the ROI using this formula

ROI =Margin * Turnover

Let plug in the formula

ROI=6.50%*1.8

ROI=11.70%

NEW SOUTH WALE DIVISION MARGIN

Margin =$ 83,475 / $ 2,385,000

Margin=3.5%

NEW SOUTH WALE DIVISION ROI

First step is to determine the Turnover using this formula

Turnover=Total sales/Average Asset

Let plug in the formula

Turnover= $ 2,385,000 /$530,000

Turnover =4.5 times

Now let determine the ROI using this formula

ROI =Margin * Turnover

Let plug in the formula

ROI=3.5%*4.5

RO1=15.75%

2. Based on the above calculation the divisional manager that seems to be doing the better job

Is NEW SOUTH WALE DIVISION because the ROI is greater.

3 0
2 years ago
Interest-on-Interest Consider a $1,500 deposit earning 4 percent interest per year for 7 years. How much total interest is earne
valentina_108 [34]

Answer:

<em>Interest earned </em>     =   $420

Explanation:

T<em>he total worth of the investment after the the investment period compounded at certain rate  is called the Future Value.</em>

Future Value= Principal + compounded interest i.e

FV = P × (1+r)^n

r- rate, FV- future value , n- period

FV = ? , P -1,500, r- 4%, n-7 years

FV = 1,500  ×1.04^(7)

FV = 1973.897669

<em>Interest earned (compound intrest) = FV - Principal amount</em>

                         = 1973.897669 - 1,500

                        =  $473.89

Without interest earning interest.

The amount of interest earned will be computed on the principal only

Interest earned = $1,500× 4%× 7

                         = $420

7 0
3 years ago
Accounting is the information system that A. processes information into reports. B. measures business activity. C. communicates
Natalka [10]

Answer:

The correct answer is letter "D": All of the above.

Explanation:

Accounting is the activity by which the economic transactions of a company are registered in ledgers that together form a group where information is recorded to be summarized at the end of an accounting period in Financial Statements. That report is useful for top managers since they can make decisions about what the firm should implement or replace to maximize the firm's resource allocation and profits.

8 0
3 years ago
Identify when change management is not requiredChange in leadershipTime of crisisChange in organizational cultureEvent managemen
djyliett [7]

Answer:

brainstorming method i choose this because no one can judge on what i suggest because sometimes i feel so underestimated

5 0
3 years ago
If the current dividend (D0) is $3.00 and the growth rate is 6%. How much will the dividend be at Time 5?
katen-ka-za [31]

The dividend will be $4.015

<u>Explanation:</u>

The given data is: Initial dividend given is = $3 and growth rate given is = 6%

the following formula is used in order to calculate the dividend

dividend at time 5 = d0 multiply with (1+growth rate) power 5

= $3.00 multiply with (1+0.06) power 5

=>$3.00 multiply (1.33822558)

=>$4.015 (rounded to two decimals).

<u>Note :</u> The dividend is the amount that is paid by the company to its shareholders. The amount of dividend may vary from year to year depending upon the profitability level of the company that it earned during the year.

5 0
3 years ago
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