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11Alexandr11 [23.1K]
3 years ago
5

A firm can produce steel with or without a filter on its smokestack. If it produces without a filter, the external costs on the

community are $ 500,000 per year. If it produces with a filter, there are no external costs on the community, and the firm will incur an annual fixed cost of $ 300,000 for the filter. Use the Coase Theorem to answer how costless bargaining will lead to a socially efficient outcome, if the property rights are owned by the community. A. the community will have an incentive to pay the firm some price above $ 300,000 (perhaps $ 499,999) to induce the firm to install the filter. B. The firm would install the filter at a cost of $ 300,000. C. the socially efficient outcome is for the firm to not install the filter
Business
1 answer:
Licemer1 [7]3 years ago
6 0

Answer:  B. The firm would install the filter at a cost of $ 300,000.

Explanation:

If the community owns the property rights, they would be able to demand that the firm pay the external cost of $500,000 per year.

If on the other hand the company installed a filter, it would cost them $300,000 but then they would not have to pay the community the $500,000.

The lower cost option would be to install the filter for $300,000 which is what the firm would do.

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Jeanie acquires an apartment building in 2008 for $280,000 and sells it for $480,000 in 2019. At the time of sale there is $60,0
Evgen [1.6K]

Answer:

$60,000

Explanation:

According to section 1250 of the Internal Revenue Service, the depreciation previously allowed as a deduction would now be taxed in the case of ordinary income at the highest tax level.

And,  For this, the asset should be depreciated real property.

In the question, there is depreciation charged for apartment building so the same is eligible

The eligibility is allowed up to $60,000 and the same is to be considered

8 0
3 years ago
A company has the following account balances: Sales revenue $2,000,000: Sales Returns and Allowances $250,000: Sales Discounts $
Naily [24]

Answer:

0.25 or 25%

Explanation:

The computation of the gross profit rate is shown below:

Gross profit rate = Gross profit ÷ Net sales revenue

where,

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= $2,000,000 - $250,000 - $50,000

= $1,700,000

And, the Cost of goods sold is $1,275,000

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So, the gross profit rate is

= $425,000 ÷ $1,700,000

= 0.25 or 25%

6 0
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The Aggarwal Corporation needs to save $10 million to retire a $10 million mortgage that matures in 10 years. To retire this mor
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See the formula of the future value of annuity ordinary through Google
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Which of the following should you NOT wear to an interview?
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Answer: I think Anything tight, bright, short, or sheer should absolutely be avoided.

Explanation:

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