The probability that the company will not lose money next quarter using both addition and complement rules is 0.8.
Calculation of a Probability Using Addition and Complement RulesLet:
P(E) = The probability that the company will earn a profit next quarter = 50%, or 0.50
P(B) = The probability that the company will break even next quarter = 30%, or 0.30
P(L) = The probability the company will lose money next quarter = 20%, or 0.20
P(NL) = The probability the company will not lose money next quarter = ?
Therefore, we have:
a. The probability the company will not lose money next quarter using addition rule can be calculated as follows:
P(NL) = P(E) + P(B) = 0.5 + 0.3 = 0.8
b. The probability the company will not lose money next quarter using complement rule can be calculated as follows:
P(NL) = 1 – P(L) = 1 – 0.2 = 0.8
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PLEASE HELP WITH THIS ECONOMICS ASSIGNMENT
This lesson examines many concepts, including opportunity costs. For this discussion, you will write a brief scenario that describes opportunity costs.
For example:
After working weekends for the past three years, Janet has saved $7,000. Her goal is to buy a new 90-inch HD television. Before she buys the TV, she is offered an opportunity to travel with her best friend to Australia and New Zealand. The trip will cost about $7,000.
Janet’s opportunity costs are either missing out on purchasing a new television (if she chooses to travel) or forgoing her plan to purchase a television (if she travels abroad).
Now, write your own scenario that illustrates opportunity costs.
A scenario that illustrates the concept of opportunity costs is when Gilbert works at an annual salary of $60,000 or he starts a business.
What is an illustration of opportunity costs?The store owned by Gilbert could have been rented out at an annual lease of $15,000. If Gilbert's store generates annual revenue of $200,000 with a cost of goods worth $100,000 and selling and administrative expenses that cost him $25,000 annually.
If Gilbert chooses to open the store, his economic gain from running the business will be $20,000 ($200,000 - $80,000 - $25,000 - $15,000 - $60,000).
Whereas, if he chooses employment as an accountant, his economic profit will be $75,000 ($60,000 + $15,000).
Thus, based on the concept of opportunity costs, which gives rise to economic profit, Gilbert will be advised to take up employment instead of starting his own business.
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Name the blue-shaded parts as a mixed number.
A) 2 2/3
B) 3 2/3
C) 2 2/9
D) 3 2/9
Answer:
[A] 2 2/3
Explanation:
Base on the given data you can see that 2 of the circle are fully shaded meaning
2 whole
There is one that is shade 2/3 {2 out of 3 are shaded}
Hence, put together
2 2/3
Therefore, the answer is [A] 2 2/3
~lenvy~
George is going shopping for a new car to replace his old one. Which of these costs would be
relevant in deciding between cars:
O the annual cost of George's driver's license renewal
the fixed title fee for a new auto
o the value of his existing auto
O the cost to operate the new vehicles (e.g., miles per gallon for each car)
The cost that would relevant in the choice of a new car is the the cost to operate the new vehicles.
What cost would be relevant?The cost that would be relevant in the choice of a new car is the cost that is dependent on the type of car chosen. The cost to operate the new car would depend on the type of car chosen. If George buys a more fuel efficient car, the cost of running the car would be cheaper.
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Agricultural managers need, at the bare minimum, what kind of degree in order to obtain their first job in that role?
A: Associates degree
B: Bachelors degree
C: Doctorate degree
D: Masters degree
What report compares metrics based on user acquisition date over a series of weeks?.
Answer:
✒️Answer:Cohort Analysis report compares metrics based on user acquisition date over a series of weeks.
Explanation:
#CarryOnLearning[tex]watch.some.anime[/tex]
If a nation’s currency appreciates relative to that of its trading partners, what will happen to the nation’s exports, imports and aggregate demand?.
If a nation’s currency appreciates relative to that of its trading partners, the nation' exports would decrease, import would increase and aggregate demand would decline.
What is currency appreciation?
A nation's currency appreciates if the value of the currency increases. If the value increases, it becomes more expensive for trading partners to buy the goods of the country who currency appreciated.
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Which of the following does NOT influence the effectiveness of a chemical sanitizer solution?
Concentration
Temperature
Cost
Contact time
The cost of a solution does not influence the effectiveness of a chemical sanitizer solution.
What is the chemical sanitizer solution?The effectiveness of the sanitizer means the ability of the solution to clean the surface applied to effectively.
Some factors that influence the effectiveness of a chemical sanitizer solution includes:
concentrationtemperaturecontact timewater hardnesspH etc.Therefore, the Option C is correct.
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An investment firm provides its customers mobile applications that significantly simplify traditional investing activities. For example, a customer can purchase a stock by utilizing their phone or tablet. This unique service demonstrates the firm’s desire to practice which of Porter’s strategies?
The Differentiation strategy is used by the investment firm in standing out in the industry.
What is Michael Porter strategy?A strategy is defined by Porter as a competitive position that is deliberately chosen as a different set of activities to deliver a unique mix of value.
The Generic Strategies model of Michael Porter includes:
Cost LeadershipDifferentiationFocus.These strategy are important because they provide an options for organizations to gain competitive advantage.
In conclusion, the Differentiation strategy is used by the investment firm in standing out in the industry.
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On December 31, 2015, Sarasota Co. performed environmental consulting services for Hayden Co. Hayden was short of cash, and Sarasota Co. agreed to accept a $160,000 zero-interest-bearing note due December 31, 2017, as payment in full. Hayden is somewhat of a credit risk and typically borrows funds at a rate of 11%. Sarasota is much more creditworthy and has various lines of credit at 6%. Required:
a. Prepare the journal entry to record the transaction of December 31, 2015, for Tran Co. b. Assuming Tran Co.'s fiscal year-end is December 31, prepare the journal entry for December 31, 2016. c. Assuming Tran Co.'s fiscal year-end is December 31, prepare the journal entry for December 31, 2017.
The appropriate journal entry to record the transaction of December 31, 2015, for Tran Co. is: Debit Notes receivable $129,859.2;Credit Service revenue $129,859.2.
Journal entries(a) December 31, 2015
Debit Notes receivable $129,859.2
($160,000 x 0.81162)
Credit Service revenue $129,859.2
(PV of $160,000 due in 2 years at 11%)
(b) December 31, 2016
Debit Notes receivable $14,284.5
($129,859.2 x 11%)
Credit Interest revenue $14,284.5
(c) December 31, 2017
Debit Discount on notes receivable $44,425
[$160,000 - ( $129,859.2- $14,284.5)]
Credit Interest revenue $44,425
Debit Cash $160,000
Credit Notes receivable $160,000
Inconclusion the journal entry to record the transaction of December 31, 2015, for Tran Co. is: Debit Notes receivable $129,859.2;Credit Service revenue $129,859.2.
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roles of private sectors in tourism in Africa
The roles of private sectors in tourism in Africa include the following:
Investing in the tourism sector with time and money.Reducing trips to destinations outside of Africa.Identifying holiday centers and attractive sitesDeveloping beaches.Promoting tourist products through Social Media.Encouraging adventure tours.What is tourism?Tourism is the process of spending time away from your home for the following purposes:
RecreationRelaxationPleasure Using commercial services.In Africa, tourism centers have been identified in Uganda, Algeria, Egypt, South Africa, Kenya, Morocco, Tunisia, Ghana, and Tanzania.
The types of tourism include:
Adventure tourismBeach tourismCultural (food) tourismEcotourism (experiential tourism)Medical tourismWildlife tourism.Thus, the private sectors in Africa have different roles in tourism development.
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The Americans with Disabilities Act requires that employers make reasonable accommodations for individuals with disabilities. How might this requirement affect law enforcement officers and firefighters
The way in which this requirement would affect law enforcement officers and firefighters is that more disabled persons would be admitted into the force.
What is an Act?This refers to the law passed which gives explicit instructions about a particular thing that has to be carried out and is legally backed.
With this in mind, we can see that the Americans with Disabilities Act mandated that employers make reasonable accommodations for individuals with disabilities and this Act would reduce discrimination against the employment of disabled persons.
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Discuss the external factors that may affect law
Answer:
political - For example, new legislation.
economic - For example, inflation and unemployment.
social - Changes in taste and fashion or the increase in spending power of one group, for example, older people.
technological - For example, being able to sell goods online or using automation in factories.
Explanation:
PLEASE ANSWER I REALLY WANT TO GRADUATE
1. What are the differences between a sales tax and a use tax?
A. A sales tax is levied on the purchases of goods while a use tax is levied on the purchases of sevices.
B. A sales tax is collected when a good or service is purchased by a consumer while a use tax is collected when a good or service is purchased by a businesses.
C. A sales tax is on the purchase of goods and services at the point of sale while a use tax is paid on goods and services purchased when sales tax was not paid.
D. A sales tax on goods and services is paid by a region's residents and a use tax is paid by non-residents, both at the point of sale.
2. Compare how Medicare taxes are paid by individuals who are employees to those who are self-employed.
A. Employees pay half (1.45%) of the Medicare tax while the employer pays the other half. Self-employed individuals pay for both halves of the tax (2.9%).
B. Employees do not pay the Medicare tax and the employer pays for both halves of the tax (2.9%). Self-employed individuals pay for both halves of the tax (2.9%).
C. Employees pay half (1.45%) of the Medicare tax while the employer pays the other half. Self-employed individuals pay half (1.45%) of the Medicare tax.
D. Employees pay for both halves of the tax (2.9%) and the employer does not pay the Medicare tax. Self-employed individuals do not pay Medicare tax.
3. Which type of tax describes excise taxes, sales taxes, and tolls?
A. Progressive tax
B. Flat tax
C.regressive tax
D. Use tax
4. Identify all the groups that pay property tax.
A. Landowners, homeowners, and businesses
B. Businesses and individuals
C. Employers and employees
D. Landowners and homeowners
5. How are businesses taxed with the corporate income tax?
A. Businesses pay a progressive tax based on their total expenses.
B. Businesses pay a proportional tax based on their total receipts.
C. Businesses pay a proportional or progressive tax based on their profits.
D. All businesses pay the same amount of tax each year.
The differences between a sales tax and a use tax are:
A sales tax is on the purchase of goods and services at the point of sale while a use tax is paid on goods and services purchased when sales tax was not paid.What is used tax about?A lot of states uses Consumer Tax states. While Use Tax is known to be the tax that is placed or tax on the storage, use.
Note that used tax are placed on goods that no sales tax has been paid. Use tax is said to be a complementary or compensating tax used in place of sales tax.
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Answer:
LOOK AT EXPLAINATION FIRST !!
There are different types of taxes that really are levied for each institution in a kind of major way. Income corresponds to taxes paid by individuals on their mostly earned money. Property, on the kind of other hand, corresponds to taxes paid by property owners to state and local governments, contrary to popular belief. Corporate taxes definitely are the taxes that companies are required to pay on their earnings over the course of a year, which essentially is fairly significant.
Explanation:
1. C
2. A
3. C
4. A
5. C
When an installment note is issued, the journal entry will include a __________ to __________.
a. debit; Notes Payable
b. debit; Cash
c. credit; Cash
d. credit; Notes Receivable
According to Daniel Kahneman and Amon Tversky, a $1 loss pains us ________ times more than a $1 gain helps us.
Daniel Kahneman and Amon Tversky believe that when we suffer a $1 loss, compared to a $1 gain, we suffer 2.25 pain.
What did Daniel Kahneman and Amon Tversky believe?Based on some models that the two ran, they came up with a conclusion that we suffer more from losses than we get help from gain.
Their prediction was that a loss of $1 can hurt us about 2.25 more times than a gain of $1 can help us.
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Describe the major e-commerce activities and processes and the mechanisms that support them.
The main activities and processes of e-commerce involve the activities of buying and selling a product or service traded over the internet.
What are the mechanisms of the marketplace?These are the types of interactions between sellers and buyers and e-marketplaces. The main ones are:
Business to Business (B2B) are business transactions between companies.Business to Consumer (B2C) is the most common, between business and consumer.Consumer to Consumer (C2C), commerce between consumers.Therefore, through the marketplace, the e-ccomerce in their different configurations, attracts specific audiences with greater speed and reach, enabling greater negotiations and positioning.
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If a firm's expected sales are $264,000 and its break-even sales are $197,000, the margin of safety in dollars is:
Assuming the firm's expected sales are $264,000 in which the firm break-even sales are $197,000, the margin of safety in dollars is:$67,000.
Margin of safety in dollarsUsing this formula
Margin of safety in dollars=Expected sales-Break-even sales
Where:
Expected sales=$264,000
Break-even sales=$197,000
Let plug in the formula
Margin of safety in dollars=$264,000-$197,000
Margin of safety in dollars=$67,000
Inconclusion the margin of safety in dollars is: $67,000.
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The Loan Payable account is a/an
a. Asset
b. Liability
c. Revenue
d. Expense
Note Receivable is a/an
a. Asset
b. Liability
c. Revenue
d. Expense
A company has budgeted total overhead of $10,575 at actual units produced and actual total overhead of $9,775. The controllable variance is:
Assuming a company has budgeted total overhead of $10,575 at actual units produced. The controllable variance is:$800 F.
Controllable varianceUsing this formula
Controllable variance= Actual units produced - Budgeted total overhead
Where:
Actual units produced=$9,775
Budgeted total overhead=$10,575
Let plug in the formula
Controllable variance=$9,775-$10,575
Controllable variance=$800F
Inconclusion the controllable variance is:$800 F.
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what is a informal business structure
Hector a Maria have been married for almost one year now and are thinking about buying a house. Maria is an executive for a large, multinational corporation with offices around the world. She has been told by her company that she will be transferred to a new location every three years. Hector is a car salesman and he is willing to move to wherever Maria gets transferred. Together they make $8,000 in gross monthly income and pay 40% in taxes and withholdings every month. Between them they have monthly payment of $400 in student loans and $700 in car loans, and their credit cards payments average $450 per month. They currently lease a luxury condo for $1,400 per month. They travel to Cancun every Christmas. Since they both work a lot of hours, they eat out at restaurants for most meals. They currently have nothing in savings but Hector's grandparents have said they will give them a 20% down payment for the new home. Assuming a PITI of approximately $1,300 for the townhouse, will they be approved for a mortgage?
Assuming a PITI of approximately $1,300 for the townhouse, and given Hector and Maria's PITI of $4,300, the couple will not be approved for a mortgage.
What is PITI?The PITI means principal, interest, taxes, and insurance. Traditionally, the PITI should not exceed 28% of the gross income of Hector and Maria.
Since they both earn a gross monthly income of $8,000, they are likely to get approved for the mortgage but for the townhouse's limit of $1,300.
Data and Calculations:Gross monthly income = $8,000
PITI maximum = 28% or $2,240 ($8,000 x 28%)
Taxes and withholdings per month = 40% or $3,200 ($8,000 x 40%)
Student loans payments = $400
Car loans payments = $700
Approximate PITI per month = $4,300
Excluded in PITI calculations:
Credit cards payments per month = $450
Lease for luxury condo per month = $1,400
Thus, given the townhouse's PITI of $1,300, Hector and Maria will not be approved for a mortgage.
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Chipman Sofware recently reported the following amounts in its unadjusted trial balance at its year-end:
1. Prepare the adjusting journal entry required for the year. Assume Chipman uses 1/2 of 1 percent of sales to estimate its Bad Debt Expense for the year and no Bad Debt Expense has been recorded yet.
2. Prepare the adjusting journal entry required for the year. Assume instead that Chipman uses the aging of accounts receivable method and estimates that $82 of its Accounts Receivable will be uncollectible.
3. Assume instead that Chipman uses the aging of accounts receivable method and estimates that $82 of its Accounts Receivable will be uncollectible. Prepare the year-end adjusting journal entry for recording Bad Debt Expense. Assume Chipman's year-end unadjusted balance in Allowance for Doubtful Accounts was a debit balance of $22.
4. If one of Chipman's main customers declared bankruptcy after year-end, what journal entry would be used to write off its $20 balance?
Answer:
What is allowance for doubtful debt?
This represents management's estimate of the amount of accounts receivable that will not be paid by customers. They are amount owed by debtors, whose likelihood of collection is not certain.
1 Bad debts expense Dr ($18,000 × 0.25%) $45
To Allowance for Doubtful Accounts $45
(Being the bad debt expense is recorded)
2. Bad debts expense $45
($72 - $27)
To Allowance for Doubtful Accounts $45
(Being the bad debt expense is recorded)
3 Bad debts expense $105
($72 + $33)
To Allowance for Doubtful Accounts $105
(Being the bad debt expense is recorded)
4 Allowance for Doubtful Accounts $15
To Accounts Receivable $15
(Being the allowance for doubtful accounts is recorded)
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Explanation:
To determine a product selling price based on the total cost method, management should include: Multiple Choice Total product and selling, general, and administrative costs plus a markup. Total selling, general, and administrative costs plus a markup. Total product costs plus a markup. Only a markup. Total product and selling, general, and administrative costs only.
If one wants to determine the selling price of a product using the total cost method, the management should use Total product costs plus a markup.
What is total cost method?When using the total cost method, the company takes into account the full cost of producing the good in question. This includes total product cost only.
A markup is then added to the total cost to find a suitable selling price that allows for a projected level of profit.
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During May, 2021, Breakfront Corporation announced a 2-for-1 stock split. This brought the number of shares outstanding from 25,000,000 shares to _____ shares, and its $2.00 par value to _____ per share.
Answer:
50,000,000 shares. $1.00 per share.
Explanation:
A 2:1 split doubles the shares and halves the value.
Shares are fractional ownership interests in a corporation. For some businesses, shares are a type of financial instrument that allows for the equitable distribution of any declared residual profits in the form of dividends.
Answer : 50,000,000 shares. $1.00 per share.
A 2:1 split doubles the shares and halves the value.
How do you determine the price per share?Take a company's net income and deduct preferred dividends to get earnings per share. Subtract that sum from the typical number of outstanding ordinary shares.
For instance, if you decide to set the par value of your company's shares at $1, all stock buyers are required to pay a minimum of this sum for each share they buy. If you buy 10,000 shares, you must invest at least $10,000 to do so.
Gains Margins : Day traders experience a wide range of outcomes, which are mostly influenced by the amount of capital they are willing to risk and their money management prowess. A successful day could result in a gain of 5%, or $500, on a $10,000 trading account.
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#SPJ2
Marketing has led to increased feelings of depression, anxiety, poor body image, loneliness, and the internal feeling of needing money and materialistic things to be accepted in society.
Why do you believe marketing causes these unhealthy feelings and emotions?
Answer:
Gender, age, and socioeconomic status such as occupation, education degree, and health care condition, have significant effects on anxiety and depression status. Female gender, advanced age, high-stress occupations, lower educational degree, and poor health care conditions all are risk factors.
Using the following data from both Garçon company and Popper company for the year ended December 31th to compute (1) the cost of goods manufactory and (2) the cost of goods sold for each company. Hint: Not all information is needed for the solution
Garcon Co. Pepper Co.
Finished Goods inventory, beginning $12,000 $16, 450
Work-in-process inventory, beginning 14,500 19,950
Raw material inventory, beginning 7,250 9,000
Rental cost on Factory equipment 27,000 22,750
Direct labor 19,000 35,000
Finished goods inventory, ending 17,650 13,300
Work in process inventory, ending 22,000 16,000
Raw material inventory, ending 5,300 7.200
Factory utilities 9,000 12,000
General and administrative expenses 21,000 43,000
Indirect Labor 9,450 10,860
Repairs -Factory equipment 4,780 1, 500
Raw Materials Purchases 33,000 52,000
Selling expenses 50.00 46,000
Sales 195,030 290,010
Cash 20,000 15,700
Accounts receivable, net 13,200 19,450
Based on the various balances of Garcon Co. and Pepper Co. the following are true:
Cost of goods manufactured:
Garcon Company = $96,680.Pepper Company = $139,860.Cost of goods sold:
Garcon Company = $91,030.Pepper Company = $143,010.What was the cost of goods manufactured for Garcon Company?This can be found as:
= Beginning raw material Inventory + Raw material Purchases - Ending Raw material Inventory + Direct labor + Rental cost of Factory Equipment + Factory Utilities + Indirect Labor + Repairs-Factory Equipments + Beginning Work in Progress - Ending Work in progress
= 7,250 + 33,000 - 5,300 + 19,000 + 27,000 + 9,000 + 9,450 + 4,780 + 14,500 - 22,000
= $96,680
What was the cost of goods manufactured for Popper Company?Using the same formula as above:
= 9,000 + 52,000 - 7,200 + 35,000 + 22,750 + 12,000 + 10,860 + 1,500 + 19,950 - 16,000
= $139,860
What is the cost of goods sold for Garcon Company?= Beginning finished goods + Cost of goofs manufactured - Ending finished goods
= 12,000 + 96,680 - 17,650
= $91,030
What is the cost of goods sold for Pepper Company?Using the same formula as above:
= 16,450 + 139,860 - 13,300
= $143,010
Please note that Factory supplies used is missing in question and so was not added to cost of goods manufactured.
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Part 1: Effective Communication
Write a 150- to 200-word response to the following scenario and questions:
Your class requires you to use a program you must download on your computer. You have waited until day 5 of the week to download the program, and you need it for an assignment that is due in 2 days. Now you are having issues with the program.
• How do you approach solving this problem?
• Whom would you contact first, and why?
• What are the resources available to support you when obstacles arise?
• Why is effective communication important in linking you to these resources?
Part 2: College Writing Process
Write a 150- to 200-word response to the following questions:
• When you have an essay due in an upcoming course, how will you manage your time to ensure you are able to complete all 5 steps of the writing process (prewriting, organization, drafting, revising, and editing)?
• How can you apply what you have learned about the college writing process to enhance the effectiveness of your written communication in the workplace?
Part 3: Academic Integrity
Access the Center for Writing Excellence.
Review the following resources under the Academic Integrity heading:
• Plagiarism Tutorial
• Student Code of Academic Integrity
• APA Style: Plagiarism Guide
Write a 150- to 200-word response to the following questions:
• What are 2 examples of violations of the Student Code of Academic Integrity?
• What resources on plagiarism available to you as a student would be most useful in preventing each of these 2 examples of violations?
• Why is integrity important in your professional life?
• How do you put integrity into practice in your professional life?
When you have a prompt asking you to write about "How" you are being asked to write an Explanatory Essay.
To write an effective explanatory essay, you must ensure that you first research the topic you have been given from credible sources. Remember that your objective is to educate the reader. The key idea here is to demonstrate effective communication.
A. Part 1 is a 150 to 200-word response. Because you are to write about your experience, there is no use going into theories.
All your essays must contain an introduction, body, and conclusion. Use one paragraph for the introduction, one or two more for the body, and the last for the conclusion.
Your introduction is crucial. It should be very interesting that the reader would like to read to the end.
B. In the body of your essay (which should follow after your introduction) you must demonstrate adequate provision of related and relevant evidence to buttress your points.
3. Ensure that your thoughts are organized, that is following one another logically. Do check to ensure that you have no grammatical errors.
Finally, always recap your main points and summarize your findings in the conclusion.
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Answer: This is not the answer! Not helpful at all!!!!
Explanation:
2. The following table provides information about the production possibilities frontier of a Country.(4)
Computer Wheat
0 420
10 400
30 360
50 300
70 200
90 0
a. Plot and connect these points to create Country's production possibilities frontier.
b. If the Country currently produces 10 computers and 400 kg wheat, what is the opportunity cost of an additional 20 computers?
c. Suppose that a technological advancement allows the country to produce computers more efficiently. What would be the effect on the PPF? Draw it.
Based on the PPF of the country, if the country were to produce an additional 20 computers at that level, the opportunity cost would be 40 kg of wheat.
If a technological advancement allows for computers to be produced more efficiently, the PPF would expand outwards as shown in the attachment.
What would be the opportunity cost?At the point where this country can produce 10 computers, the amount of wheat it can produce is 400 kg wheat.
If it produces 20 more computers, it will move to the point where it can produce 30 computers and 360 kg of wheat. Opportunity cost would be:
= 400 - 360
= 40 kg wheat.
What happens due to a technological advancement?When there is an improvement in technology, the production capacity of a nation increases. This leads to the production possibilities frontier expanding outward.
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HELP PLEASEEE 15 POINTS FOR THISSS
1. A career ______ lets you present documents that highlight your skills, interests and
abilities.
A. journal
B. examples
C. portfolio
2. Awards and certificates, report cards and transcripts and samples of work are all ___________ in a portfolio
A.fossils
B.artifacts
C.workbooks
3. An actual folder that holds printed documents is known as a hard copy portfolio
A. yes
B. no
4. An e-portfolio is something where you can store digital files
A. no
B. yes
5. There are ______ main types of portfolios
A. 4
B. 2
C. 3
Answer:
1. C
2. C
3. B
4. B
5. B
Explanation:
1. Portfolio relates to a career while "examples" and journal do not.
2. Workbooks because fossils and artifacts relate to something that is not a part of a portfolio.
3.There is no such thing as a hard copy portfolio.
4. An electronic portfolio, or an e-portfolio, stores online digital files.
5. There are only 2 main types of portfolios.
Showcase
Development
ow suppose the U.S. government does not know the demand curve for pollution and, therefore, cannot determine the optimal tax to achieve the desired level of pollution. Instead, it auctions off tradable pollution permits. Each permit entitles its owner to emit one ton of chemicals per day. To achieve the socially optimal quantity of pollution, the government auctions off 150 million pollution permits. Given this quantity of permits, the price for each permit in the market for pollution rights will be
Given the quantity of 150 million permits, the price for each permit in the U.S market for pollution rights will be $45.
This price of $45 achieves the socially optimal quantity of pollution because it could have been imposed as a tax.
What are pollution rights?Pollution rights give businesses the right to buy and sell government-issued licenses or permits for a regulated level of pollution emission.
Pollution rights or permits grant the holders the right to create and release a certain amount of pollution that achieves the socially optimal quantity.
Thus, the price for each pollution permit in the US market that the government should charge for pollution rights will be $45, as it is equal to the tax revenue that could be obtained but remains more relevant for business entities because of their resale potential.
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