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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.

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Patterson Co. is considering a project that has the following cash flow and cost of capital (r) data. What is the project's NPV?
diamong [38]

Answer:

NPV= $60.52

Explanation:

Giving the following information:

Robbins Inc. is considering a project that has the following cash flow: −$950 $500 $400 $300

Cost of capital= 10.00%

To calculate the net present value we need to use the following formula:

NPV= -Io + ∑[Cf/(1+i)^n]

Cf= cash flow

For example= Year 3: 300/1.10^3= 225.39

NPV= $60.52

8 0
3 years ago
Why did Guardbark want people to not disturb the trees?
vichka [17]

Answer:

Why did the Guardbark want people to leave trees alone? ... He wanted the trees to be left alone because they give us oxygen and are the habitats of lots of diverse species.

I found this answer on google so I hope this helps.

3 0
3 years ago
Read 2 more answers
1. Contrafic Corporation used the following data to evaluate its current operating system. The company sells items for $21 each
olga_2 [115]

Answer:

 $470,000 F

Explanation:

The computation of the static budget variance of operating income is shown below:

Particulars  Actual results         Static budget         Static budget variance Units sold        180,000 units        185,000  units

Revenues        $3,780,000            $4,440,000             $660,000 U

Variable costs  $1,080,000            $1,295,000              $215,000 F

Contribution margin  $2,700,000   $3,145,000             $445,000 F

Fixed costs         $800,000              $775,000              $25,000 U

Operating income   $1,900,000     $2,370,000            $470,000 F

Note:

Multiply the selling per unit with unit sold to get the revenue amount

6 0
3 years ago
Which of the following statements about normal costing is not true? Group of answer choices Manufacturing overhead is allocated
Katena32 [7]

Answer:

Direct costs are traced using an actual rate, and indirect costs are allocated using a budgeted rate

Explanation:

Normal costing refers to the actual cost of direct materials, direct labor, and manufacturing overhead applied. This cost is calculated by using a predetermined annual overhead rate.

Direct costs are expenses involved in producing goods or providing services and indirect costs are general expenses that are involved in operating.

The statement about normal costing which is not true is ''Direct costs are traced using an actual rate, and indirect costs are allocated using a budgeted rate''

5 0
3 years ago
The interest yields on U.S. Treasury securities in early 2009 fell to very low levels as a result of the combined events surroun
Leni [432]

Answer and Explanation:

The computation is shown below:

For three months

Simple yield is

= Discount ÷ Price at sale

= 6.07 ÷ 9993.93

= 0.0607%

And, the annualized yield is

= 0.0607% ÷ 3 × 12

= 0.2428%

For 6 months

= Discount ÷ Price at sale

= 23.07 ÷ 9976.74

= 0.2312%

And, the annualized yield is

= 0.2312% ÷ 6 × 12

= 0.4625%

4 0
3 years ago
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