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labwork [276]
3 years ago
12

Suppose that electricity producers create a negative externality equal to $5 per unit. Further suppose that the government impos

es a $5 per-unit tax on the producers. What is the relationship between the after-tax equilibrium quantity and the socially optimal quantity of electricity to be produced?
Business
2 answers:
VashaNatasha [74]3 years ago
8 0

Answer:

They are equal

Explanation:

Negative externality is when the benefits of economic activities to third parties is less than its costs.

A tax is levied on negative externality to reduce quantity produced to the social optimal quantity.

If the amount of tax is equal to the amount of total negative externality, then after-tax equilibrium quantity will be equal to social optimal quantity.

If the amount of tax is less than the amount is equal to the amount of total negative externality, then after-tax equilibrium quantity will be greater than the social optimal quantity.

If the amount of tax is greater than the amount is equal to the amount of total negative externality, then after-tax equilibrium quantity will be less than the social optimal quantity.

I hope my answer helps you

Veronika [31]3 years ago
5 0

Answer:

They are equal

Explanation:

The relationship between the After-tax equilibrium quantity and the socially optimal quantity of electricity to be produced would be equal this is because the negative externality which is $5 is equal to the government imposed tax of $5 per-unit of electricity produced by the producers

since the equilibrium quantity produced by the producers already have a negative externality attached before the government imposed tax on the producers hence the socially optimal quantity would not be affected at all.

If  the tax imposed by the government is higher than the negative externality. the after-tax equilibrium quantity will be lower than the socially optimal quantity and vice versa

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A group of newly recruited employees were bullied by senior members of the facilities team. Jodie, one the team members who witn
ch4aika [34]

Answer:

B) Upward communication

Explanation:

Upward communication defines that the employees follow hierarchy from downward to upward which means a lower employee to a higher. For example Worker to supervisor and supervisor to Manager. Upward communication is the most effective source in every organization as traditional forms of communication increasingly become less common.

Therefore as per the situation, Senior members of the facilities team had intimidated a group of newly hired workers. Jodie, one of the team members who observed the event, wrote a letter detailing the harassment incident to her division manager. In this case, Jodie is engaging in upward communication.

5 0
4 years ago
Sales $200,000 Net income 100,000 Depreciation 20,000 Interest 10,000 Taxes 5,000 What is the company’s operating profit margin?
WITCHER [35]

Answer:

57.5%

Explanation:

Data Provided:

Total Sales =  $ 200,000

The net income = $ 100,000

Depreciation = $ 20,000

Interest = $ 10,000

Taxes = $ 5,000

Now,

the operating profit is the from the income before the taxes and interest. Thus,

the interest and taxes will be included in the net income for the operating profit

therefore,

The operating profit = income + Interest + Taxes

or

The operating profit = $ 100,000 + $ 10,000 + $ 5,000 = $ 115,000

Now,

the operating profit margin = ( Operating profit / Sales ) × 100

or

= ( $ 115,000 / $200,000 ) × 100 = 57.5%

3 0
3 years ago
Agricultural output is affected by the weather. Excessively high temperatures and a lack of rainfall are detrimental too crop yi
Dimas [21]

Answer:

<u>Scenario:</u>

1. Agricultural output is affected by the weather.

2. Excessively high temperature + lack of rainfall = less crop yields.

3.  Farmers desire to maximize crop yields under the best growing conditions and accept whatever the weather offers.

4. For a particular crop, actual yield < desired yield.

<u>Solution: </u>

1. Conditions for less than desired yield to be beneficial for farmers revenue:

a) Higher market demand:  The market demand for the crop this year may be far higher than the supply since the yield is less than desired.

b) With market demand outstripping supply, price for the crop will skyrocket, according to the law of demand and supply.

c) Total revenue may become more this year, given the increased demand, less supply, and increased price per unit.

2. a) The surprising result is possible, because more people will want to buy the crop.  The total quantity they may require will be higher than the actual quantity available for sale.  The sellers will take advantage of this situation to raise the price per unit.

b) For example, yam tubers cost $2 per pound last year.  The total pounds of yam produced was 200 pounds.  The total revenue for all sellers would not exceed $400 ($2 * 200 pounds).  If the yam produced this year is 50 pounds and the price per pound is $10.  The farmers revenue will be $500 ($10 * 50 pounds).  With this hypothetical example, it can be clearly seen that total revenue increased by $100 despite the reduced crop yield.

Explanation:

What is operational here is the economic law of demand and supply.  The law states that when the demand is higher than the supply, the price will be higher.  On the other hand, when the supply is higher than the demand, the price will be lower.  Equilibrium price is achieved when demand equals supply, all things being equal.

All things are equal when there is a perfect market with information available equally to sellers and buyers.  This enables transactions to be carried out at an arm's length between knowledgeable buyers and sellers.  The implication is that buyers and sellers do not take advantage of the other party to cheat on price or act on a cartel basis.

4 0
3 years ago
A bakery would be willing to supply 500 bagels per day at a price of $0.50 each. At a price of $0.80, the bakery would be willin
son4ous [18]

Answer:

1.63

Explanation:

The computation of the pricing elasticity of supply using the midpoint method is shown below:

= (change in quantity supplied ÷ average of quantity supplied) ÷ (percentage change in price ÷ average of price)  

where,  

Change in quantity supplied would be

= Q2 - Q1

= 1,100 - 500

= 600

And, the average of quantity supplied is

= (1,100 + 500) ÷ 2

= 800

Change in price would be

= P2 - P1

= $0.80 - $0.50

= $0.30

And, average of price would be

= ($0.80 + $0.50) ÷ 2

= 0.65

So, after solving this, the price elasticity of supply is 1.63

6 0
3 years ago
On january 1, applied technologies corporation (atc) issued $510,000 in bonds that mature in 10 years. the bonds have a stated i
irina [24]

Answer:

The correct answer for both is $510,000.

Explanation:

According to the scenario, the computation of the given data are as follows:

Issued in Bonds = $510,000

Interest rate = 10%

Market rate = 10%

As, interest rate is equal to market rate of the the bond, So it can be considered as bonds are issued at the face value.

So, the issued price = $510,000

The issuance amount = $510,000

7 0
3 years ago
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