Answer:
The answer is 80%
Explanation:
Profit = revenue - cost of sales
=[(50* 300) per 50 front-foot lot * 3 lots ] - 25000 *100
=(45000-25000)/25000 *100
<u>=80%</u>
Answer: a tax equal to the external cost.
Explanation:
The most efficient taxes are those that will be equal to the external cost of production that a company is imposing on the environment. This means in effect that a company is paying for the pollution it is inflicting on the environment.
Companies polluting less would pay less and those polluting more would pay more. This is the logic of a tax equal to the external cost.
It gives you more ideas to make the final product better than what it original product
Answer:
230
Explanation:
Calculation for Champ’s budgeted production (in units) for May
CHAMP INC.
Production Budget For month ended May 31
Sales during the month 230
Less: Opening Stock (138)
(60%*230)
Sales units required to produce in May 92
(230-128)
Sales during June 230
Add: Closing stock of May 138
(230*60%)
Budgeted production (in units) for May: 230 (138+92)
Therefore Champ’s budgeted production (in units) for May will be 230
Answer:
less than the government spending multiplier
Explanation:
Given :
Percentage spends by a households for the increase in the income = 75%
So the mpc = 0.75
Potential output = 600 billion arcs
The government multiplier is = 
= 4
The tax multiplier is = 
= 3
Thus we see that the tax multiplier is less than the government spending multiplier.
