1answer.
Ask question
Login Signup
Ask question
All categories
  • English
  • Mathematics
  • Social Studies
  • Business
  • History
  • Health
  • Geography
  • Biology
  • Physics
  • Chemistry
  • Computers and Technology
  • Arts
  • World Languages
  • Spanish
  • French
  • German
  • Advanced Placement (AP)
  • SAT
  • Medicine
  • Law
  • Engineering
alexandr402 [8]
3 years ago
15

Suppose a firm pollutes a river with harmful chemicals when it produces a product. To achieve the efficient amount of output, th

e government could impose a _____ that equals the ______ of the pollution.
Business
2 answers:
alexdok [17]3 years ago
8 0

Answer:

tax; marginal external cost

Explanation:

Here are the options to this question :

tax; marginal external cost

subsidy; marginal social benefit

tax; marginal social benefit

subsidy; marginal external benefit

Externality is when the activities of economic agents affect third parties not involved in the economic activity.

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

An example of an activity that generates negative externality is pollution. The aim of government would be to reduce pollution. To do this, the government would tax the economic agent involved in the pollution an amount equal to the marginal external cost. Taxes increases cost of pollution to the party involved in causing the pollution and thus would act as an incentive for the firm to reduce pollution produced.

Postive externality is when the benefits of economic activities to third parties exceeds the costs.

Government can encourage the production of activities that generate positive externality by providing subsides at an amount equal to the marginal external benefit

I hope my answer helps you

Evgesh-ka [11]3 years ago
7 0

Answer:

To achieve the efficient amount of output, the government could impose a <u>POLLUTION (PIGOVIAN) TAX</u> that equals the <u>MARGINAL EXTERNAL COST</u> of the pollution.

Explanation:

Pigovian taxes are those taxes imposed on activities that generate negative externalities, specially related to pollution. This way the government imposes an economic cost on companies that create harmful externalities in an attempt to make them reverse their actions. E.g. gas guzzler taxes imposed on vehicles that are not fuel efficient.

This type of taxes were developed by a British economist named Arthur Pigou in 1920 as a way to fight excessive pollution.

You might be interested in
Lorenzo Company applies overhead to jobs on the basis of direct materials cost. At year-end, the Work in Process Inventory accou
Sergio039 [100]

Answer and Explanation:

1. The computation of the predetermined overhead rate is shown below:

= Overhead applied ÷ direct material cost

= $846,000 ÷ $1,800,000

= 47%

2. The direct labor and overhead cost assigned to the job is shown below:

Total cost $89,000

Less: direct material cost $32,000

Less: overhead cost  $15,040 ($32,000 × 0.47)

Direct labor cost $41,960

7 0
3 years ago
Alexandria has gone to the store to shop for a new backpack. She looks for the same brand she has always bought in the past but
Sergio [31]

Answer:

The correct answer is aesthetic.

Explanation:

The aesthetics in the design of products refers to the response or reaction of people with an object, artifact or system, this response is manifested through the senses: vision, touch, hearing, taste and smell. Each one contributes to the perception of the product considering whether it is pleasant, pleasant, or if it evokes attraction in the person.

In this case, Alexandria has noticed a change in the design, which may affect your purchase decision, because you may have preferences towards a specific color.

4 0
3 years ago
Volusia, Inc. Is a U. S. -based exporting firm that expects to receive payments denominated in both euros and Canadian dollars i
NARA [144]

From the details that are contained in the question, the portfolio standard deviation is 0.0544 or 5.44%

<h3>How to solve for the portfolio standard deviation</h3>

w1 = weight of euros 1 = 500000/800000

w2 = weight of canadian dollars = 300000/800000

Standard deviation 1 = 8%

Standard deviation 2 = 3%

Correlation coefficient = 0.30

(w1*σ1)² + (w2*σ2)² + (2* w1*σ1* w2*σ2 * 0.30)^0.5

((0.625*0.08)^{2} +(0.375*0.03)^{2} +(2*0.625*0.08*0.375*0.03*0.3)^0^.^5\\\\= 0.0544

Therefore the portfolio standard deviation is given as 0.0544 or 5.44%

Read more on standard deviation here: brainly.com/question/475676

5 0
2 years ago
An Uber driver faces costs for driving that include sunk costs like insurance that contribute to the average cost per mile of $.
crimeas [40]

Answer: sunk costs don't increase as driving increases.

Explanation: sunk costs are irrelevant costs because they have already occured in the past and cannot be avoided. Sunk costs thus do not differ between alternatives, and are unavoidable. The calculation for insurance and other sunk costs are likely not based on the amount of rides the Uber picks up, but rather calculated at a constant rate. So regardless of whether or not the rider pays more or less than the $.50 on the insurance, this will not have any effect on the insurance that is constant and has likely already been paid out.

4 0
3 years ago
Grove Inc. is a publicly traded chemical company that reported the following financial statements for the most recent year. $1,0
Oksi-84 [34.3K]

Answer:

FCFF = $335.50

Explanation:

Formula of Free Cash Flow to the firm ( FCFF) :

FCFF= Net Income+ Interest(1- tax rate)+ Depreciation+ working capital changes- capital investment

Now let us note some critical points and assumptions which are necessary to solve the question.

As the question says that the company will maintain its existing after tax return on capital invested next year, hence that means that the net income for the next year remains the same, which is $140.

It is also that the company expects it's Operating Income(EBIT) to increase by 6% every year, hence it's operating income(EBIT) for the next year will be $250*(1.06)= $265

Tax rate remains the same, that is, (60/200*100)= 30%

As there is no details with respect to working capital changes and any capital investment made, hence it is assumed to zero changes and no additional investment.

It is assumed that the depreciation method being followed is straight line method, hence depreciation value next year would be the same, that is, 150

Now let's finalise our income statement:

EBIT = $265 given in the question

Interest = ( $65) backward calculation

Taxable Income = $200

Taxes (30%) = ($60)

Net income = $140 given in question.

Hence our FCFF will be :

$ 140 + $65*(1-0.30) + $150 = $335.50

8 0
3 years ago
Other questions:
  • Here is an example of a positioning statement for Volvo:
    6·1 answer
  • Whole Foods Market ordered 12 cases of organic vegetable soup with a list price of $18.90 per case and 8 cases of organic baked
    13·1 answer
  • An illness that affects the brain and reduces a person's ability to cope, to adjust to every day life changes, or to get along w
    12·2 answers
  • A simple index of three stocks have opening values on day 1 and day 8 as shown in the table below. What is the rate of change of
    14·1 answer
  • In the systems planning phase, a key part of the preliminary investigation is a feasibility study that reviews anticipated costs
    5·1 answer
  • Fetzer Company declared a $0.35 per share cash dividend. The company has 200,000 shares authorized, 190,000 shares issued, and 8
    10·1 answer
  • An attorney came to work on a Saturday. When he signed in, he was advised by the morning security guard employed by the building
    15·1 answer
  • We refer to the Federal Reserve as ?<br> “The b... b..”
    13·1 answer
  • g 2. Problems and Applications Q2 Indicate whether each of the following transactions represents an increase in net exports, a d
    13·1 answer
  • You are sitting around the fire at a lodge in Dillingham, Alaska, discussing a fishing expedition you are planning with your col
    9·1 answer
Add answer
Login
Not registered? Fast signup
Signup
Login Signup
Ask question!