Consider a situation in which a utility company emits high levels of sulfur dioxide and the company is not liable for the damages its pollution causes. According to the Coase theorem, government action is ________ to achieve an ________ amount of pollution

Answers

Answer 1

Answer:

not necessary; efficient.

Explanation:

Consider a situation in which a utility company emits high levels of sulfur dioxide and the company is not liable for the damages its pollution causes. According to the Coase theorem, government action is not necessary to achieve an efficient amount of pollution. Coase theorem was developed in 1960 by a British economist and author named Ronald Coase.

Coase theorem states that when the actions of a party (X) negatively affects or harm another party (Y), then party Y should be able to create an incentive for party X to stop or limit the action creating such harm.

Hence, when transaction cost are low, the two parties are able to bargain and reach a mutual agreement in the presence of an externality such as a pollution.


Related Questions

On january​ 1, 2017, finch company issued​ $89,000 of​ five-year, 8% bonds when the market interest rate was​ 12%. the issue price of the bonds was​ $73,000. finch uses the​ effective-interest method of amortization for bond discount. semiannual interest payments are made on june 30 and december 31 of each year. how much interest expense will be recorded when the first interest payment is​ made? (round your answer to the nearest dollar​ number.)

Answers

Answer:

$4,380

Explanation:

The computation of the interest expense recorded in the first year is shown below:

= Issued price of the bond × market interest rate ÷ semi annual period

= $73,000 × 12% ÷ 2

= $73,000 × 6%

= $4,380

Hence, the interest expense would be recorded when the interest payment is made is $4,380

We simply applied the above formula

Emergency Operations Centers are part of the standard, national framework for incident management. This is described in A. the Command and Coordination component of the National Incident Management System (NIMS). B. the Resource Management component of the National Incident Management System (NIMS). C. the Operational Period Planning Cycle and Incident Action Plan for each individual incident. D. the Communications and Information Management component of the National Incident Management System (NIMS).

Answers

Answer:

Correct Answer:

C. the Operational Period, Planning Cycle, and Incident Action Plan for each individual incident.

Explanation:

Emergency Operations Centers are centers in National Incident Management in charge of incident management that is applicable at all  jurisdictional levels and across functional disciplines.

A company signed an operating lease agreement to use office space for 5 years. The company took possession and began to use the building on January 1, Year 1. Annual rent of $24,000 is due on the first day of each year. Assuming an implicit interest rate in the lease of 6%, the present value of the lease payments at the inception of the lease is $107,163. On December 31, Year 3, what amount should the company report as the lease liability balance on its balance sheet

Answers

Answer:

$22,642

Explanation:

The amount of lease liability that will be reported in the balance sheet on December 31 year 3 can be calculated as follows

           Opening    Cash payment     Outstanding   Interest rate   Closing

Year 1    $107,163      $24,000            $83,163           $4990          $88,153

Year 2    $88,153       $24,000           $64,153           $3,849         $68,002

Year 3    $68,002      $24,000           $44,002         $2,640         $46,642

Year 4   $46,642       $24,000           $22,642         $1,358           $24,000

Year 5    $24,000     $24,000                  -                   -                       -        

Total liability = $46,642

Non curret = $46,642 - $24,000 =$22,642

The amount of lease liability that will be reported in the balance sheet on 31 December year 3 is $22,642

Assume Jones Manufacturing begins March with 20 units of inventory that cost $15 each. During March, the following purchases and goods sold were: March 15 Purchased 25 units at $18 30 Sold 30 units Using the FIFO inventory costing method and the perpetual system, what is the ending Merchandise Inventory on March 30?

Answers

Answer:

$270

Explanation:

The computation of the ending inventory using the FIFO method is shown below:

But first we have to determine the ending inventory units which is shown below:

= Beginning units + purchased units - sale units

=  20 units + 25 units - 30 units

= 15 units

Now the ending inventory is

= 15 units × $18

= $270

Hence, the ending inventory is $270

Toyota's just- in- time system is an example of using transfer pricing to avoid price controls. backward (upstream) integration. quasi-vertical integration. horizontal, downstream integration.

Answers

Answer:

quasi vertical integration

Explanation:

Quasi vertical integration is the vertical integration in which there is ownership by one firm i.e. downstream that closed to point where consumption ends or the upstream where the specialized tool and equipment are used

Also the firm that controls has a strong position but it is less as compared with the real vertical integration

Therefore according to the given situation, the second option is correct

The ability of a multinational or global competitor to shift production from country to country to take advantage of exchange rate fluctuations, energy costs, wage rates, or changes in tariffs is an example of Multiple Choice cross-market subsidization. cross-market differences in cultural, demographic, and market conditions. an international strategic alliance. cross-border coordination. a profit sanctuary.

Answers

Answer: an international strategic alliance.

Explanation:

A strategic alliance is when two companies come together and cooperate in order to enjoy a mutual benefit.

Therefore, an international strategic alliance is the ability of a multinational or global competitor to shift production from country to country to take advantage of exchange rate fluctuations, energy costs, wage rates, or changes in tariffs.

Answer:

Correct Answer:

5. A profit sanctuary.

Explanation:

The aim of every business establishment is to maximize profits while at same time minimize to the barest minimum the cost associated in running the business. For example a car manufacturing company relocating from U.S to Canada due to favorable tariffs is in-order to protect and maximize their profits. This is an example market scenario movement called profit sanctuary

A credit downgrade typically results in​ _________ interest rate for new debt. A. no change in B. not enough information to tell C. a higher D. a lower 2. There​ is​ a(n)​ _________ relationship between the price of an outstanding bond and market interest rates. A. none of the above B. positive C. direct D. inverse 3. The greater the volatility of earnings the​ ______________ the bond rating when everything else is held constant. A. there is no relationship between earnings and bond rating. B. higher C. lower D. volatility is irrelevant when evaluating earnings

Answers

Answer and Explanation:

1. If there is the downgrade of credit than there would be a higher rate of interest charged for a new debt

2. Also, there is an inverse relationship between the outstanding bond price and the market rate of interest i.e if the bond price is increased the rate of interest is less and vice versa

3. And if the volatility of the earning is high that leads to less rating of bond keeping the other things constant

If a stock is correctly priced, then you know that ____________. A. the dividend payout ratio is optimal B. the stock's required return is equal to the growth rate in earnings and dividends C. the sum of the stock's expected capital gain and dividend yield is equal to the stock's required rate of return D. the present value of growth opportunities is equal to the value of assets in place

Answers

Answer: the sum of the stock's expected capital gain and dividend yield is equal to the stock's required rate of return

Explanation:

Stock are the investment that are made by individuals or firms into a public company.

When a stock is correctly priced, it means that the sum of the stock's expected capital gain and dividend yield is equal to the stock's required rate of return

When a business doesn't have control of all the environmental forces, it is called ________ design. For example, Acme Medical relies on predictions and contingencies to cope with unexpected input. Last year, an influenza epidemic affected suppliers, personnel, and even customers, causing lost production and lost profit.

Answers

Answer: open

Explanation:

An open design is business that doesn't have control of all the environmental forces. This can bring about loss and bad happenings to the business.

This is shown in the example given above that Acme Medical relies on predictions and contingencies to cope with unexpected input and that last year, an influenza epidemic affected suppliers, personnel, and even customers, causing lost production and lost profit.

At December 31, 2017, Larkspur Corporation had an estimated warranty liability of $124,000 for accounting purposes and $0 for tax purposes. (The warranty costs are not deductible until paid.) The effective tax rate is 30%. Compute the amount Larkspur should report as a deferred tax asset at December 31, 2017. Deferred tax asset at December 31, 2017

Answers

Answer:

$37,200

Explanation:

The amount of deferred tax on 31 December 2017 for Larkspur can be calculated by multiplying the estimated warranty liability for accounting purposes with an effective tax rate.

DATA

Estimated warranty = $124,000

Effective tax rate = 30%

Deferred tax liability =?

Solution

Deferred tax liability = Estimated warranty x Effective tax rate

Deferred tax liability = $124,000 x 30%

Deferred tax liability = $37,200

The stock price of Harper Corp. is $33 today. The continuously compounded interest rate is 6%. A put option on Harper Corp. stock with an exercise price of $30 and an expiration date 73 days from now is worth $.95 today. A call option on Harper Corp. stock with an exercise price of $30 and the same expiration date should be worth __________ today. (Assume 365 days a year) A. $2.25 B. $3.14 C. $3.99 D. $4.31

Answers

Answer:

D. $4.31

Explanation:

The computation of expiration date should be worth in today is shown below:-As per put-call parity

P + S = present value of X + C

Where,

P indicates the value of the put option

S indicates the current price of a share

X indicates the strike price

C indicates the value of the call option.

Present value of X = X ÷ e^r

r  represents the risk-free rate

Now, we will put the values into the above formula

Present value of X = 30 ÷  e^0.012

r = 6% × (73 ÷ 365)

= 1.2%

0.95 + 33 = (30 ÷ e^0.012) + C

After solving the above equation we will get

C = $4.31

Strikes are much more disruptive in pro sports than in mainstream business because A. players have unique talents and cannot be replaced with temporary replacement workers. B. professional athletes' salaries are so much higher than the average worker. C. sports are seasonal, thus have less time to realize revenue. D. All of these are correct.

Answers

Answer:

A. players have unique talents and cannot be replaced with temporary replacement workers.

Explanation:

The reason for disturbing strikes in pro sports as compared with the mainstream business is due to unique talents in players that cannot be easily found also it should not be replaced with the temporary workers.

As due to unique talents of players the win chances of games could be high

Therefore the correct option is a.

John and Jane are a married couple. John is a medical doctor, while Jane is a business executive. They maintain their finances separately - John has his options account at BD "A." while Jane has her options account at BD "B." John and Jane were talking over dinner about the latest news coming from XYZZ Corp. and they decide that the stock will likely move up rapidly. The next day, John places an order with his broker to buy 140,000 XYZZ calls and Jane calls her broker and places an order to buy 160,000 XYZZ calls. The position limit for XYZZ is 250,000 contracts on each side of the market. Which statement is TRUE

Answers

Answer:

The remaining part of the question is:

Which Statement is True:

A. This is not a violation of position limits because the positions were taken in accounts at different broker-dealers

B. This is not a violation of position limits because each individual acted independently when placing his or her order

C. This is not a violation of position limits because of the marriage exemption from position limit violations

D. This is a violation of position limits

Correct Answer:

D. This is a violation of position limits

Explanation:

Since Jane and John are couple, it would be treated as a single entity despite the fact that, they operate different account in different banks. The position limit for XYZZ is 250,000 contracts whether as an individual or as a couple placed independently or jointly.

As an economy​ grows, A. the opportunity cost of production will approach 0. B. its PPF does not​ shift; instead, the production point moves from inside the PPF to be closer to the PPF. C. its PPF shifts outward. D. it can eliminate scarcity. E. the opportunity cost of production will increase.

Answers

Answer:

Option C, its PPF shifts outward, is the right answer.

Explanation:

Option “c” is correct because the growth in the economy shows two things. First, the output of the economy has increased during a particular period of time. Secondly, it shows that the potential of the economy has increased. This means its productivity to produce has increased. Therefore, in such cases, the PPF curve shifts rightwards and this rightwards shift in PPF shows the economic growth

Suppose two firms are in a game​ situation, and they each must decide on a strategy regarding whether to select a high price or a low price. Profits for a firm are highest when it selects a low​ price, while the other selects a high​ price; profits are lowest if one selects a high​ price, while the other selects a low​ price; profits are in between when both select low​ prices; and profits are slightly higher when both select high prices. In the absence of collusion we expect:________

Answers

Answer: Both to select low prices.

Explanation:

One of the vital goal of doing business is profit irrespective of the firm. Every business has to deal with funds and when funds is involved profit has to be made even while serving the client in satisfying conditions. The profit enables the firm to be ran smoothly; it's operations and have a reason to be said that their in business. Every firm ooks out for opportunities to make rofit while giving their best. According to the paragraph profits are high when the price of the commodity is reduced, each firm will reduce it's pricing to ensure they make profit.

Smith Commercial Development has effective control processes, allowing its managers to discover ______ in bookkeeping right away, before a would-be embezzler could seriously affect its business.

Answers

Complete Question:

Smith Commercial Development has effective control processes, allowing its managers to discover ______ in bookkeeping right away, before a would-be embezzler could seriously affect its business.

Group of answer choices

A. irregularities and errors

B. team problems

C. a potential merger

D. tax breaks

E. competence

Answer:

A. Irregularities and errors.

Explanation:

In this scenario, Smith Commercial Development has effective control processes, allowing its managers to discover irregularities and errors in bookkeeping right away, before a would-be embezzler could seriously affect its business.

Generally, managers are saddled with the responsibility of controlling various aspects of an organization (business) and as such are required to improve the effectiveness of their control processes. An effective control process ensure that every information at various levels of organization such as bookkeeping (financial statements) are accurate through the use of corrective actions.

How does having flexible mind help you become better employee

Answers

Answer:

It helps you learn new things that will better your performance It helps you to finish your work on time

Explanation:

Answer:

It teaches you new things that will make your performance better than it already it! It also it helps you to finish your work on time.

Hope this helps! (づ ̄3 ̄)づ╭❤~

Which of the following statements about the waiver-of-premium provision in life insurance is true?
A) Because the probability of becoming disabled exceeds the probability of premature death, the cost to include this provision is usually prohibitive at younger ages.
B) Premiums are usually waived if the insured becomes partially disabled.
C) Life insurance protection continues in force during a period of disability, but dividends cease and cash values are reduced.
D) The disability must occur before a stated age, such as 65, for premiums to be waived.

Answers

Answer:

Correct Answer:

D) The disability must occur before a stated age, such as 65, for premiums to be waived.

Explanation:

In Life insurance, the individual insured against bad events that may likely occur in his or her life through an insurance company. This would led to the company to pay his beneficiary or the individual in question if such event happened.

For waiver-of premium to occur in a life insurance,the disability of the individual must occur before the age of 65 years which is assumed to be the retirement age.

Sidwan, owner of Jacuzzi Warehouse, said, "We have to focus on our customers and how we can beat the competition, so we have to be flexible." He encourages his R&D department to develop innovative products and focuses on being quick to respond to market changes. Jacuzzi Warehouse has a(n)

Answers

Answer:

The remaining part of the question is:

A) clan culture.

B) goal-driven agenda.

C) adhocracy culture.

D) market culture.

E) focused approach.

Correct Answer:

D) market culture.

Explanation:

His suggestion of his research and development team to develop innovative products for the emerging changes in markets for his customers shows that, Jacuzzi Warehouse has a market culture.

Suppose that initially the price is $20 in a perfectly competitive market. Firms are making zero economic profits. Then the market demand shrinks permanently, some firms leave the industry, and the industry returns to a long-run equilibrium. What will be the new equilibrium price, assuming cost conditions in the industry remain constant

Answers

Answer:

$20

Explanation:

A perfect competition is characterised by many buyers and sellers of homogeneous goods and services. Market prices are set by the forces of demand and supply. There are no barriers to entry or exit of firms into the industry.  

In the long run, firms earn zero economic profit.  If in the short run firms are earning economic profit, in the long run firms would enter into the industry. This would drive economic profit to zero.  

Also, if in the short run, firms are earning economic loss, in the long run, firms would exit the industry until economic profit falls to zero.  

demand falls and so does supply. therefore price would remain unchanged in the long run equilibrium.

Yvonne authorizes Warren to act as her agent and sell her vehicle. Yvonne tells Warren her vehicle has never been in an accident, and Warren, despite knowing Yvonne had been in an accident a year ago in the car, passes this information on to the buyer. Is Warren liable for the misrepresentation:__________

Answers

Answer:

no

Explanation:

because he does something that he don't know what will happen ..and do not research for someone who want to hers car

Ramirez Company installs a computerized manufacturing machine in its factory at the beginning of the year at a cost of $45,900. The machine's useful life is estimated at 10 years, or 399,000 units of product, with a $6,000 salvage value. During its second year, the machine produces 33,900 units of product.
Determine the machine's second-year depreciation and year end book value under the straight-line method

Answers

Answer:

7,980 and $37,920

Explanation:

The computation of machine's second-year depreciation and year end book value under the straight-line method is shown below:-

Depreciation

= (Purchase cost - Salvage value) ÷ Useful life

= ($45,900 - $6,000) ÷ 10

= $3,990

Now,

Depreciation for year 1 is equals to Depreciation for year 2 = $3,990

2nd year

Accumulated depreciation at the end is

= $3,990 + $3,990

= $ 7,980

Now, Book value at the end of the second year

= Purchase cost - Accumulated depreciation

= $45,900 - $7,980

= $37,920

Ratio analysis:___________.
a) Includes estimating the net present value of the investment opportunity.
b) Is generally adequate to fully assess an investment’s expected return.
c) Requires cash flow estimates for the investment’s entire expected holding period.
d) Serves as an initial evaluation of the adequacy of an investment’s expected cash flows.

Answers

Answer:

D. Serves as an initial evaluation of the adequacy of an investment's expected cash flows.

Explanation:

Ratio analysis serves as an initial evaluation of the adequacy of an investment's expected cash flows.

Ratio analysis can be defined as the analysis of different pieces of financial information in the financial statements of a business.

Ratio analysis is used to get insight about the financial wellbeing of a business. It is used by analysts to determine various aspects of a business, such as its profitability, liquidity, and solvency.

sun inc factors 2,000,000 of its accounts receivables withou recourse for a finance charge of 5%. the company retains equal to 10% of the accounts recevable for possible adjustments. sun estimates of the recourse liabilitty at 75,000. What would be recorded as gain or loss on the transfer of receivables?

Answers

Answer:

$100,000

Explanation:

Calculation for What would be recorded as gain or loss on the transfer of receivables

Account receivable 2,000,000

Less Cash 1,700,000

(2,000,000*85%)

Due from Factor account 200,000

(2,000,000*10%)

Loss on sales of receivable $100,000

Therefore What would be recorded as gain or loss on the transfer of receivables will be $100,000

Elderly travelers as well as those who are physically challenged find it hard to climb stairs when they are allotted motel rooms which are not on the first floor.The Convenience Inn has succeeded in catering to this specific group of customers via its motels,all of which have one floor of rooms with no stairs to climb.Which of the following refers to The Convenience Inn's success in identifying distinct groups of consumers whose needs,wants,and purchasing behavior differ from others in important ways?A) market penetrationB) market developmentC) market segmentationD) product developmentE) diversification

Answers

Answer:

C) market segmentation

Explanation:

The market segmentation refers to the segmentation of the market i.e division that are depended upon various attributes like the same interested, needs, locations, taste and preferences. It could be behavior, geographical, psychographic, demographic, etc

In the given situation, since Convenience Inn is succeeded in catering to the particular customer groups so this represents the market segmentation

The owner of a property creates a deed, leaving the name of the grantee blank, and puts it in a drawer, where it is forgotten for several years. One day, a visitor finds the deed, fills in his name as grantee, and attempts to record it. However, the owner will probably have no trouble disputing the validity of the deed because

Answers

Answer is given below

Explanation:

The owner will probably have no trouble disputing the validity of the deed because the person listed as Granny allows the deed to be kept legally when it is filed, as well as the physical deed is clearly greedy, there is no way to dispute it unless the property owner has provided proof that the visitor has given his or her grading permission.

The primary result of a stock split or stock dividend is: Group of answer choices an increase in the number of common shares outstanding an increase in the common equity account an increase in the market value of common shares a decrease in the number of common shares outstanding an increase in the P/E ratio

Answers

Answer:

an increase in the number of common shares outstanding

Explanation:

A stock split is when a company increases the number of its shares outstanding.

for example if a company has 10 million shares outstanding at a price of $20, earning per share is $10 and dividend per share is $0.50. this company announces a 2 for 1 split :

the number of outstanding shares becomes 2 x 10 million = 20 million

stock price becomes = $40 / 2 =$20

earning per share = $10 / 2 = $5

dividend per share = $0.5 / 2 = $0.25

p/e before split = $40 / $10 = 4

P/E after split = $20 / $5 = 4

so stock per share, earning per share and dividend per share decreases. P / E remains unchanged

Lew's has 500 bonds outstanding with a price quote of 98.6. There are also 12,000 shares of common stock selling for $47 a share and 5,000 shares of preferred stock at $70 a share. What is the weight of equity

Answers

Answer:

$963300

Explanation:

Number of bonds = 500

Quote price of bond = 98.6

number of common stock shares = 12000

price of common stock share = $47

Number of preferred stock shares = 5000

price of preferred stock shares = $70

Calculate the weight of Equity

market value of bonds = 500 * 98.6 = $49300

market value of common stock = 12000 * 47 = $564000

market value of preferred stock = 5000 * 70 = $350000

therefore the weight of equity of Lew's

= value of bonds + value of common stock + value of preferred stock

= 49300 + 564000 + 350000 = $963300

Four brokerage firms operate in the same small city as Jackson’s firm. All the firms charge approximately the same listing commission and pay approximately the same cooperating commission to the selling broker. The commission splits within each firm are also similar. Is this an antitrust violation? Why or why not?

Answers

Answer:

Yes, this is antitrust violation. Because, the tend to restrain trade in that small city thereby denying other small player brokerage firms from making a living due to their monopolistic actions among themselves.

Explanation:

Antitrust laws are designed in-order to prohibit a number of business practices that restrain trade. Examples of illegal practices are price-fixing conspiracies, corporate mergers that are likely to cut back the competitive fervor of certain markets, and predatory acts designed to gain or hold on to monopoly power.

Violations of such laws attract sanctions and punishment from the regulatory body in-charge of protecting such.

Frank needs to buy a new car. Before visiting a showroom, however, he logs onto www.autobytel.com. Here, he can compare the attributes of various makes and models, find information about the prices of various option packages, and learn the manufacturer's suggested retail prices for different cars. After deciding on the car he wants to buy, Frank visits the local showroom and negotiates with the salesperson for the model and options package he wants. Because Frank is so informed about prices, he is able to make a deal that is several hundred dollars less than the salesperson's best offer. Frank's car-buying experience illustrates which reason consumers shop online?A) convenienceB) communicationC) customizationD) choiceE) control

Answers

Answer: control

Explanation:

From the question, we are informed that Frank needs to buy a new car and that before visiting a showroom, however, he logs onto www.autobytel.com and compared the attributes of various makes and models, and also found other vital information.

We are further told that after deciding on the car he wants to buy, Frank visits the local showroom and negotiates with the salesperson for the model and options package he wants and he was able to make a deal that is several hundred dollars less than the salesperson's best offer.

Frank's car-buying experience illustrates control. Consumers like to have control when buying a product and have detailed information regarding a product.

Answer:

Control

Explanation:

The sixth reason why people shop online is control, which online shopping delivers to customers. The customer can seek information, evaluate available options, make purchases and timely decisions and all this is possible if the customer emphasizes control over their online shopping behaviors.

Here, Frank seeks online information, evaluates the best option and then choose the option. Frank also visits the showroom by searching online the product availability which confirms his evaluation of options that gives him control over his online shopping behavior. Furthermore, Frank makes deal that is several hundred dollars less than the salesperson's best offer which shows informed decision making of Frank and this was all possible because of control of purchasing behavior that online shopping delivers to customers.

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