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OleMash [197]
3 years ago
10

Tradable permits are likely to result in less inefficiency, relative to a pollution tax, when ... a. the marginal costs of damag

es are steep and the marginal costs of pollution reduction are relatively stable. b. the marginal costs of damages are steep and the marginal costs of pollution reduction are steep. c. the marginal costs of damages are relatively stable and the marginal costs of pollution reduction are relatively stable. d. the marginal costs of damages are relatively stable and the marginal costs of pollution reduction are steep. e. the marginal costs of damage are elastic and the marginal costs of pollution reduction are also elastic.
Business
1 answer:
Andrej [43]3 years ago
3 0

Answer:

a. the marginal costs of damages are steep and the marginal costs of pollution reduction are relatively stable.

Explanation:

Pollution can be defined as the physical degradation or contamination of the environment through an emission of harmful, poisonous and toxic chemical substances.

Offset trading refers to a type of trading system that is typically designed for the realization of more efficient pollution control.

This ultimately implies that, an offset trading is a strategic program that allows emerging business firms to pay existing business firms in order to significantly reduce their emissions or pollutants below a specific standard.

Free market in tradable pollution permits simply means giving manufacturing companies and individuals the legal right to pollution of the environment. For example, XYZ company is purchasing the permit of 500 units of carbon dioxide (CO2) pollution annually, this simply means it is permitted to pollute the environment by 500 units of CO2 annually.

Additionally, a free market in tradable pollution permits has some sort of benefits as companies can resell their unused permits or devise a cheaper means of reducing pollution. It also compensate companies that significantly reduces its pollution of the environment.

A pollution tax can be defined as a type of tax imposed on business firms that causes pollution and damages to the environment. It is also referred to as Pigovian tax which is a tax on goods with negative externality.

Hence, tradable permits when compared with pollution tax are likely to result in less inefficiency, when the marginal costs of damages are steep and the marginal costs of pollution reduction are relatively stable.

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Bill Dukes has $100,000 invested in a 2-stock portfolio. $35,000 is invested in Stock X and the remainder is invested in Stock Y
Jet001 [13]

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The portfolio's beta is <u>0.98</u>

Explanation:

Stock beta id the weghted average beta of a portfolio, Use following formula to calculate the portfolio beta

Portfolio beta = ( Beta of stock X x Weight of Stock X ) + ( Beta of stock Y x Weight of Stock Y )  

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5 0
3 years ago
8. You need a particular piece of equipment for your production process. An equipment-leasing company has offered to lease the e
elena-14-01-66 [18.8K]

Answer:

Find attached question containing the cash flows under the purchasing option,note that the discount rate in the attached is 7.1% but the main question has 6.9%,hence  I would make use of 6.9%

The present value of leasing option is lower,hence it is preferred.

Explanation:

The cash flows under the purchasing option is $39,200 now and $2000 each year for 5 years.

In determining the better of the two options we determine the present value of each option as follows:

leasing option=$10,100/(1+6.9%)^1+$10,100/(1+6.9%)^2+$10,100/(1+6.9%)^3+$10,100/(1+6.9%)^4+$10,100/(1+6.9%)^5=$ 41,523.11  

Purchase option=$39,200+$2000/(1+6.9%)^1+$2000/(1+6.9%)^2+$2000/(1+6.9%)^3+$2000/(1+6.9%)^4+$2000/(1+6.9%)^5=$ 47,422.40  

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3 years ago
You have just arranged for a $1,800,000 mortgage to finance the purchase of a large tract of land. The mortgage has an APR of 7.
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