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just olya [345]
2 years ago
8

Two firms, A and B, each currently emit 100 tons of chemicals into the air. The government has decided to reduce the pollution a

nd from now on require a pollution permit for each ton of pollution emitted into the air. The government gives each firm 50 pollution permits, which it can either use of sell to the other firm. It costs Firm A $200 for each ton of pollution that it eliminates before it is emitted into the air, and it cots Firm B $100 for each ton of pollution that it eliminates before it is emitted into the air. After trading the permit, how many tons of pollution will Firm A emit
Business
1 answer:
katrin2010 [14]2 years ago
4 0

Answer:

20 more tons of pollution into the air, and Firm B will emit 100 fewer tons of pollution into the air.

Explanation:

It is given that :

Amount of tons of pollutants emitted by the two firms A and B earlier = 100 tons

Cost of pollutants by firm A = $ 200 per ton of pollutions

Cost of pollutants by firm B = $ 100 per ton of pollutions

Since the cost for eliminating the pollutants into the air is more for the firm A, the ticket is also more valuable for firm A. And therefore, firm A will buy all the tickets form firm B for an amount around $ 101 to $ 199. It will do so as to have a positive consumer and also to produce surplus.

So firm A will eliminate 20 tons of pollution and will use 80 ton capacity from the tickets. And for firm B, it will eliminate all 100 tons of pollutions.

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Marketing research indicates that almost 70 percent of all women drivers who have driven a Volkswagen Cabrio prefer it to any ot
hoa [83]

Answer:

Demographic

Explanation:

A market segment is a portion of a large market in which the individuals, groups or organizations share one or more characteristics that cause them to have relatively similar products needs.

A market segment consist of a group of customers that share a similar set of needs and wants.

Are four categories of segmentation:

-Geographic

-Psychographic

-Behavioral

-Demographic. The process of dividing a market through variables such as age, gender, education level, family size, occupation, income, and more. This is one of the most used strategies amongst marketers.

7 0
3 years ago
Castille Corp. purchases, for $600,000, land upon which a building and a dilapidated shed are situated. Castille plans to use th
Alchen [17]

Answer:

b. $120,800.00

Explanation:

Cost of the land $ 600,000/-

Associated expenses:

Razing down the shed: $ 5000

income from scrap: $ 1000

Total expenses $ 4000

The total cost of land =600,000+4000= $ 604,000

Tax allocation: land and building $ 500,000

land allocation will be: 100,000/500,000 x$ 604,000

     =0.2x604,000

     =$120,800.00

5 0
3 years ago
The main purpose of project plans is to:__________ a. define project scope b. guide project execution c. schedule management pla
Llana [10]

Answer:

b, guide project execution

Explanation:

The main purpose of project plans is to guide project execution from start to finish. Project plans are formal, approved documents that is put together that details the processes, steps, resources, etc that is needed to bring a project to life. Project plans is also useful for project control.

Cheers.

3 0
3 years ago
The Playa Company has the following information in its records. Certain data have been intentionally omitted ($ in thousands). R
Zinaida [17]

Answer:

Explanation:

using the following formulars

Net purchase = (Gross Purchase) - (purchase return) - (purchase discount) + freight-in

Beginning inventory + Net purchases = cost of goods available for sales

Cost of goods sold = cost of goods available for sale - ending inventory

for 2013 we have that

beginning inventory = cost of goods available for sale - net purchases

Net purchases = 630 - 24  - 18 + 13 = 601

2013, beginning inventory = 876- 601 = 275

Ending inventory = 876 - 627 = 249

2014,

Begning inventory = closing inventory of 2013 = 249

Cost of goods available for sale = 621  + 225 = 846

Net purchase  -Cost of goods available for sale - beginning inventory = 846   - 249 = 597

Gross purchase = 597 + 15 + 30 - 32 = 610

2015

Cost of good sold = 800 - 216 = 784

Net purchase = 800 - 225 = 575

purchase discount = 585 -575 - 14 + 16 = 12

4 0
2 years ago
Firm B Firm T Shares outstanding 4,800 1,800 Price per share $ 47 $ 20 Firm B has estimated that the value of the synergistic be
zmey [24]

Answer:

A. Share Offer Is Better

B. .4569

Explanation:

A. Based on the information given the shareholders of Firm T will be better off with the STOCK OFFER because cash offer is the amount of $22 per share.

B. Calculation to determine the exchange ratio of B shares to T shares

First step is to calculate the New shares created

New shares created = 1,800(1/2)

New shares created = 900 new shares

Second step is to calculate the value of the merged firm

Value of the merged firm= 4,800($47) + 1,800($20) + $9,100

Value of the merged firm= $270,700

Third step is to calculate the price per share of the merged firm

Price= $270,700/(4,800 + 900)

Price= $270,700/5,700

Price= $47.49

Fourth step is to calculate the Equity offer value

Equity offer value = (1/2)($47.49)

Equity offer value = $23.75 per share

Fifth step is to calculate the post merger share price

Value of the merged firm= $270,700

Shares in new firm = 4,800 + 1,800x

Hence:

Post merger share price:

P= $270,700/(4,800 + 1,800x)

Sixth step

For the target firm’s shareholders to be indifferent which means they have to receive the same wealth

Hence;

1,800(x)P= 1,800($22)

Let solve this equation for P

P= $22/x

Now Let Combine the two equations

$270,700/(4,800 + 1,800x) = $22/x

x= .4569

Seventh step is to calculate the NPV

NPV = 1,800($20) + $9,100 – 1,800($22)

NPV = $5,500

Eight step is to calculate the Share price

Share price = [4,800($47) + $5,500]/4,800

Share price = $48.15

Now let calculate the Exchange ratio

Exchange ratio = $22/$48.15

Exchange ratio = .4569

Therefore the exchange ratio of B shares to T shares that the shareholders in T would be indifferent between the two offers is .4569

8 0
3 years ago
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