1answer.
Ask question
Login Signup
Ask question
All categories
  • English
  • Mathematics
  • Social Studies
  • Business
  • History
  • Health
  • Geography
  • Biology
  • Physics
  • Chemistry
  • Computers and Technology
  • Arts
  • World Languages
  • Spanish
  • French
  • German
  • Advanced Placement (AP)
  • SAT
  • Medicine
  • Law
  • Engineering
valentinak56 [21]
3 years ago
6

Suppose the production of cotton causes substantial environmental damage because the pesticides used by cotton farmers often mak

e their way into nearby rivers and streams, and are very harmful to fish and other wildlife. If cotton farmers do not have to pay for the environmental damage caused by the pesticides used to grow cotton, then the market equilibrium price will be ______ and the market equilibrium quantity will be
Business
1 answer:
Kipish [7]3 years ago
5 0

Answer: C. inefficiently low; inefficiently high

Explanation:

If the cotton farmers are not made to pay for the damage that their pesticides cost then they will maintain production at a relatively high level because their input costs will be relatively low. As a result of this high level of production, the price of the goods will be relatively low as well. The point at which both market equilibrium quantity and price are at in this scenario are considered inefficient because they are not taking into account, the true cost of production being the effects of the pesticides being used.

However, if they are made to pay for this negative externality that they are the cause of, it will increase their production cost and force them to reduce production to keep these costs low. As they reduce production, the market price will increase as supply is less.

You might be interested in
Supply chain management refers to Question 13 options: A) how the firm compensates the employees who work on the firm's internal
Elden [556K]

Answer:

C

Explanation:

The decisions around which stages of production to handle internally and which to buy from others

5 0
3 years ago
Read 2 more answers
The recognition of the need for organizations to improve the state of people, the planet, and profit simultaneously if they are
romanna [79]

Answer:

The need for organisations (which may be governmental or non-governmental) to improve the condition of living of people and protect their environment whilst they pursue increased profitability has been termed

The Triple Bottomline.

It is also referred to by economists as the 3P - People, Planet and Profit.

It speaks to the fact that other than the usual making financial success the sole metric of measurement by which organisations are evaluated, their impact on people and the environment should be considered as well.

In simple terms, a firm should be termed more successful than others if it's activities besides being profitable also impacts positively on people and protects if not improves the environment.

Cheers!

7 0
3 years ago
In addition to other costs, Grosha Telephone Company planned to incur $600,000 of fixed manufacturing overhead in making 500,000
Whitepunk [10]

Answer:

Please find the detailed answer as follows:

Explanation:

a) Predetermined overhead rate = Estimated manufacturing overhead cost   / Estimated total units in the allocation based

Predetermined overhead rate = 600,000 / 500,000 = 1.2 perunit

b) Total fixed cost spending variance = Actual fixed overhead cost - Estimated overhead cost

                                                         = 599,400 - 600,000

                                                         = 600 (F) Favourable

c) Total fixed cost volume variance = Actual fixed overheads - Estimated fixed overheads

  Actual fixed overheads = Estimated fixed overhead rate * Actual units produced

                                        = 1.2 * 508,000 = $609,600

Total fixed cost volume variance =$ 609,600 - $600,000 = $9600 (F) Favourable

4 0
3 years ago
. How does analyzing fixed and variable costs help you to set a sale price that will generate profit? 2. How is profit affected
ELEN [110]

Answer:

1. Apart from helping to know the average cost of a product, analyzing fixed and variable cost will help to derive the break even point.

2. Profit will go down

Explanation:

1. The size of the selling price and the variable cost determine contribution per unit of a product. Contribution per unit is Price minus variable cost. This shows the  contribution of sales revenue towards covering the fixed cost of a product.

2. Relevant range is the estimated or budgeted activity level which defines a business volume of production or operation, it is both maximum and minimum threshold within which the entity must operate to expect certain level of cost and revenue.

Sometimes fixed costs are fixed within a relevant range of activities and outside such range, fixed cost may become variable, which will all things being equal impact negatively on the price.

Also, within relevant range volume discount may be achieved and outside such range, this may be forfeited which, will also reduce profit all things being equal.

4 0
3 years ago
Company openness depends on the strength of the company’s grapevine.<br> a. True<br> b. False
Morgarella [4.7K]

Answer:

The correct answer is: False

Explanation:

4 0
3 years ago
Other questions:
  • Companies benefit today from interfirm cooperation. One of the ways they cooperate is through networking. Another way is by seek
    8·2 answers
  • On october 1, 2014, donald anderson exchanged an apartment building having an adjusted basis of $375,000 and subject to a mortga
    8·1 answer
  • Why do we have to pay taxes
    8·1 answer
  • Samantha runs a store that exclusively sells handmade vegan cosmetics. The store has a wide range of products manufactured by di
    6·1 answer
  • About how long after WWII did employers first start to push back against union encroachment?
    8·1 answer
  • Bryant Investments is putting out a new product. The product will pay out $32,000 in the first year, and after that the payouts
    8·1 answer
  • "Product planners need to think about products and services on three levels. The most basic level is the ________, which address
    7·1 answer
  • Now discuss with suitable examples how the issue price of bonds payable is determined? When does the issue price results in a di
    7·1 answer
  • Supercircuits is a decentralized company and has a required opportunity cost of capital of 15%. The home computer division, whos
    7·1 answer
  • anna's new business looks like it can grow quickly and become profitable in its first year. anna will likely find possible sourc
    13·1 answer
Add answer
Login
Not registered? Fast signup
Signup
Login Signup
Ask question!