Construction is an example of a(n) ____ externality. One way to correct this problem is to impose a tax equal to the externality
1 answer:
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Answer:
The weekly revenue is maximum at x=1.67.
Explanation:
The given function is
.... (1)
where, f(x) is the total revenue at price x.
We need to find the price x at which the weekly revenue is maximum.
The leading coefficient of the given function is -300, which is a negative number. So, it is a downward parabola and vertex of a downward parabola is the the point of maxima.
If a parabola is defined as
... (2)
then the vertex of the function is
From (1) and (2) it is clear that
The given function is maximum at
Therefore the weekly revenue is maximum at x=1.67.
Answer:
Therefore, the UK pound is at a discount against the U.S. dollar, because it is worth less in the One-month forward market than in the spot market.
Explanation:
Given:
Selling price = $1.5137
Spot price = $1.5139
We'll calculate how much pound is worth in the forward market.
We'll use the formula:
(selling - spot price )/spot price * 12/months of contract
= -0.0015853
Therefore, the UK pound is at a discount against the U.S. dollar, because it is worth less in the One-month forward market than in the spot market.