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Goshia [24]
3 years ago
10

Suppose the government wants to reduce the total pollution emitted by three local firms. Currently, each firm is creating 4 unit

s of pollution in the area, for a total of 12 pollution units. If the government wants to reduce total pollution in the area to 6 units, it can choose between the following two methods:
Business
1 answer:
sveta [45]3 years ago
3 0

Answer:

178 and 186

Regulation= 1,645

Tradable permits= 745

Elimination of pollution will be LESS costly

Explanation:

Calculation to Determine the total cost of eliminating six units of pollution using both methods

Computation for Method 1

REGULATION

Firm X = 95+120 = 215

Firm Y= 450+800 = 1,250

Firm Z= 80+100 = 180

Computation for Method 2

TRADABLE PERMITS

The prices at which firm Z willing to sell one of its permits to firm Y, but firm X is not will be :

178 and 186

Firm Initial permit Action Final Amount Cost of reduction

X 2 Sell 1 permit 3 95+120+200 = 415

Y 2 Buy 2 permit 0 0

Z 2 Sell 1 permit 3 80+100+150 = 330

REGULATION vs TRADABLE PERMITS

Regulation= 215+1250+180

Regulation= 1,645

Tradable permits = 415+330

Tradable permits= 745

Based on the above calculation for both regulation and tradable permits we can come to conclusion that elimination of pollution will be LESS costly to the society in a situation where the government distributes tradable permits because tradable permits is cheaper than regulation.

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The following selected transactions relate to liabilities of Chicago Glass Corporation for 2016. Chicago's fiscal year ends on D
melisa1 [442]

Answer:

cash   7,600

   nearned revenue   7,600

cash    7,300

   refundable deposist 7,300

cash                           57,100

refundable deposist   7,300

unearned revenue      7,600

      service revenue              76,000

sales tax expense 45,600

     state tax payable    30,400

     local tax payable    15,200

Explanation:

(1) as the services are not yet perform, this is a liability for Chicago Glass Corportation. It assumes to obligation of do this services.

(2)This will be refund once the job are complete and the containers returned in good form

(3) 72,000 - 7,600 = 64,400 - 7,300 = 57,100

Chicago deduct rom the invoince the previous payment and the refundable deposits once the transaction is finished.

(4)

760,000 x 4% = 30,400

760,000 x 2% = 15,200

30,400 + 15,200 = 45,600

5 0
3 years ago
Causes of low economic growth
Olenka [21]

Answer:

Effect on living standards. ...

Pressure on public services and government borrowing.

increase in aggregate demand (AD).

7 0
3 years ago
Read 2 more answers
Barbara Jones is interested in buying a five-year zero coupon bond with a face value of $1,000. She understands that the market
nordsb [41]

Answer:

Zero-cupon bond= $612.52

Explanation:

Giving the following information:

Face value= $1,000

Number of periods= 5 years

Interest rate= 10.3% = 0.103

<u>To calculate the price of the bond, we need to use the following formula:</u>

<u></u>

Zero-cupon bond= [face value/(1+i)^n]

Zero-cupon bond= [1,000 / (1.103^5)]

Zero-cupon bond= $612.52

7 0
2 years ago
Question 8
Darya [45]

Answer:

A

Explanation:

people have to make choice due to limited (opportunity cost)

3 0
3 years ago
Compare and contrast John Keats’s “To Autumn” and Susan Hartley Swett’s “July.” In your response, make sure you include the answ
Vera_Pavlovna [14]
The principle is the loan amount so it would be $1,000.
Hope it helps!
6 0
3 years ago
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