Answer: Not change the amount of pollution reduction because the marginal benefit and marginal cost of pollution reduction will not change.
Explanation:
Externality exits when one persons action affects others who are not engaged in the activity. In such situations the optimal amount of the good (externality) is determined at the point where the marginal benefit is equal to the marginal cost. When the utility is made liable for the damages it does not affect the marginal benefit or marginal cost of pollution reduction. Thus, making the utility legally liable will not change the amount of pollution reduction because the marginal benefit and marginal cost of pollution reduction will not change.
Answer:
A. There is a moderately good fit between the regression line and the individual data points on the scatterplot.
Explanation:
A -.5 correlation coefficient indicates a moderate negative correlation, which means that as the x variable increases in value, the y value decreases in value, but only in around half of the situations.
In a scatter plot, this will look like a small cloud of data points that fit more or less well around the regression line. The regression line slopes downward because the variables are inversely proportional (hence the negative coefficient).
Answer:
To maximize profit , the firm should shut down
Explanation:
In this question we are tasked with stating what a firm should do to maximize profits or minimize loss.
In this particular situation, what the firm should do is to shut down. why?
The reason why the firm should shut down is that the price per unit is less than the average variable cost. In the question, we can identify that the price per unit is $3 while the average variable cost is $3.50. We can see that the price per unit is less than the average variable cost from their values.
And hence to minimize loss or maximize profit, what the firm has to do is to shut down its operations
Answer:
The bond interest expense to be shown in profit or loss as t 30 June 2021
$9,838.56
Explanation:
The bond interest expense is the actual finance cost of using the funds made available by bondholders while the coupon payment is the portion of the finance cost paid to them periodically.
Interest expense=bonds cash proceeds*yield to maturity*6/12
bonds cash proceeds is $163,976
yield to maturity is 12%
interest expense=$163,976*12%*6/12=$9,838.56
