Answer:
The government will profit from the sale of the permits, but it affects people without the ability to get the permit.
Explanation:
a side effect or consequence of an industrial or commercial activity that affects other parties without this being reflected in the cost of the goods or services involved, such as the pollination of surrounding crops by bees kept for honey.
Answer:C
Explanation:
Contributions are not deductible and qualified educational expense distributions are taxable
Answer:
Inelastic
Explanation:
When the price elasticity of demand (PED) is lower than 1, the demand is said to be inelastic. This means that a 1% increase in the price of a good or service will result in a proportionally smaller reduction of the quantity demanded. The formula for calculating price elasticity of demand is:
PED = % of change in quantity / % of change in price
For example, if the price of gasoline increases by 5% but the quantity demanded for gasoline decreases only by 2%, the PED = 2% / 5% = 0.4, therefore the demand for gasoline is inelastic.
Answer:
The correct option is is A, predatory pricing
Explanation:
Predatory pricing is an illegal approach to pricing where a firm fixes a very low price in order to send competitors out of business.
This is very applicable to a firm that has economies of scale where its cost per unit reduces as more and more units are produced, making it possible to undercut competitors without feeling much impact in profitability.
This approach is against the anti-trust law as it paves for a monopoly market,where only one firm operating in the market determines the price which is not likely to be favorable to consumers
Answer:
We are going to pay $892.137 or less for the bonds.
Explanation:
We need to calculate the present value of the bond at 11% interet rate
Cashflow from the bond:
Principal x interest = interest service
1,000 x 9.5% = 95
Present value of annuity of 95 during 15 year at 11%
Present value of the interest service 683,1326097
Second we have to calculate the present value of the 1,000 principal in 15 years
209.0043467
Finally we add both together for the present value fothe bond at our rate
209.0043467+ 683,1326097 = 892.1369564 = 892.137