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solniwko [45]
3 years ago
5

A landfill site produces an obnoxious odor. Homes downwind of the site rent for $1000 per month while homes upwind of the site r

ent for $1500 per month. If the odor is the only detectable difference between two neighborhoods, the difference in the rent is the ________ of the odor. Group of answer choices
Business
1 answer:
Eddi Din [679]3 years ago
5 0

Answer:

External cost

Explanation:

External cost is a cost that is gotten from any economic transaction, in which the person or entity bearing the cost is not directly involved in. They are also known as spill over costs. The offensive odor in the question has generated an external cost at different locations from the site, the cost of rent differs. External costs usually have negative effects, from our question we can see that the odor from the landfill site must be intolerable for people residing in the area.

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Primary market explain how the treasury uses the primary market to obtain adequate funding
Contact [7]
<span>Each week, the Treasury holds an auction to issue T-Bills. When the auction opens, investors are able to place bids on the bills. The Treasury is then able to select the highest bids in order to obtain adequate funding.</span>
6 0
3 years ago
Vital Silence Corp. has just issued a 30-year callable, convertible bond with a coupon rate of 6.4 percent and annual coupon pay
Aleks04 [339]

Answer:

a. $880.74

b. 13 years

Explanation:

a.  Conversion ratio = Current Value of bond / Conversion price  = 1,000 / 93.4 = 10.71

Conversion price of bond = 10.71 × 28.60  = $306.31

Coupon = Par value of bond * Coupon rate  = $1,000 * 6.4% = $64

Present value of straight debt is calculated below:

Present Value = $64 × [1-(1+7.4%)^-30 / 7.4%] + [$1,000 / (1+7.4%)^30]

= $64*11.93 + $117.46

= $763.28 + $117.46

= $880.74 .

Therefore, the minimum value of bond is $880.74

b. Conversion ratio = 10.71

Current stock price = $28.6

Suppose number of year the stock will take to reach above $1,140 is t.

Conversion value = Current stock price * Conversion ratio*(1+10.8%)^t

$1,140 = $28.6 * 10.71 * (1.108)^t

(1.108)^t = 3.7218

t = 12.8145 year.

t = 13 years

8 0
3 years ago
If a tax is imposed on a market with inelastic demand and elastic supply, then:
Natali5045456 [20]

Answer:

Buyers will bear most of the burden of the tax

Explanation:

Hope it helps

6 0
3 years ago
A competitive firm produces output using three fixed factors and one variable factor. The firm's short run production function i
Nesterboy [21]

Answer:

D) 75

Explanation:

Our initial production function is:

q = 305X - 2X²        

we calculate the derivative of q:

(q') = 305 - 4X

MP = 305 - 4X

$10 / $2 = 305 - 4X

5 = 305 - 4X

4X = 305 - 5 = 300

x = 300 / 4

x = 75

6 0
3 years ago
Suppose that you are an orange grower. Would you expect the demand for your
aksik [14]

It should be noted that the demand for orange will be elastic because when there's a change in price, there'll be a larger change in quantity demanded.

It should be noted that an elastic demand simply means a situation whereby a change in the price of a good lead to a larger change in the quantity demanded.

In this case, the demand for orange will be elastic because when there's a change in price, there'll be a larger change in quantity demanded. For example, an increase in price will make the customers buy other fruits.

Learn more about demand on:

brainly.com/question/25585026

8 0
2 years ago
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