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AlexFokin [52]
3 years ago
11

Obama drives up​ miles-per-gallon requirements Emissions from all new vehicles must be cut from 354 grams to 250 grams. To meet

this new​ standard, the price of a new vehicle will rise by​ $1,300. ​Source: USA Today​, May​ 20, 2009 What is the opportunity cost of reducing the emission level by 1​ gram?
Business
1 answer:
Temka [501]3 years ago
6 0

Answer:

$12.5 per gram

Explanation:

Opportunity cost is the cost which is:

  • Future related cost
  • Cash flow in nature
  • Incremental Cost or Differential

In simple words, opportunity cost is the benefit lost due to given up another best alternative.

To reduce the pollution level from 354 to 250 gram, the price of new vehicle will increase by $1300.

Hence

The increase in price per gram = $1,300 / (354 - 250) = $12.5 per gram

This is the opportunity cost per gram increase in Carbon dioxide emission which the companies will have to bear if they don't opt to environmental free vehicles.

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McGregor allows customers to pay with credit cards. the company charges McGregor 3% of the sale. when a customer uses a credit c
KengaRu [80]
Charge a total of $206
6 0
3 years ago
When a movie theater charges a lower ticket price for senior citizens and/or students, the movie theater is engaging in_________
MariettaO [177]

Answer:

b) third-degree price discrimination.

Explanation:

The price gouging happens on prices when is carried out by the seller, goods, services or goods to a higher level than what is considered acceptable or fair and potentially considered unethically. This usually occurs after a demand or supply shock. Common examples include price increases for basic needs after hurricanes or other natural disasters.

First-degree discrimination (perfect price discrimination) appears when a business charges the maximum possible price for each unit consumed because prices are diverse among some units. In this case, where a company charges a different price for every good or service sold.

Second-degree price discrimination is the concept in which a company charges a different price when there are demands for different quantities consumed, such as quantity discounts on bulk purchases.

Third-degree price discrimination is the case in which a company charges a different price to different consumer groups. This is the type of most common type of price discrimination. If we see in the question there is given distinctive ticket price offers to senior citizens and/or students. That’s why we should choose third-degree price discrimination.

8 0
3 years ago
A company resells 10,000 shares of treasury stock for $22 per share. The stock was purchased in a previous year for $18 per shar
lys-0071 [83]

Answer:

$0, income statement s not affected.

Explanation:

The purchase and resale of treasury stock does not affect the income statement. When a company's treasury stock is resold, additional paid-in capital increases (if the stock were sold at a price above cost) or decreases (if the stock were sold at a price below cost).

5 0
2 years ago
Mr. Smith put his laptop up for sale. He is aware of the fact that the laptop malfunctions frequently. However, none of the pote
zaharov [31]

Answer: The presence of asymmetric information

                                               

Explanation:  In simple words, asymmetric information refers to the situation when one party to a contract have extra information regarding a subject than the other party of the contract.

Asymmetric information creates the potential of misconduct from the leading party as they can easily cheat the other party by concealing that important information.

In the given case, Mr. Smith was aware that his laptop is not working properly but still he sold its to a customer who was not aware of it. Thus, we can conclude that the correct option is C.

5 0
3 years ago
What is one drawback of pure competition compared to monopolies?
frutty [35]

Answer:

D. Pure competition spreads resources between many different

firms.

Explanation:

Pure competition is a market structure with many suppliers and many buyers. All the suppliers sell a homogeneous product. There is intense business competition among the suppliers. Other characteristics of pure competition include

  • There are no dominant suppliers.
  • There is ease of entry and exit into the market
  • Suppliers/firms are price takers.

In pure competition, resources are shared among the many competing firms in the industry, unlike in a monopoly that has only a single supplier. Resources include raw materials and profits.

8 0
3 years ago
Read 2 more answers
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