3. The manufacturing of Styrofoam coffee cups causes damage to a local river when the manufacturing...
Fantastic news! We've Found the answer you've been seeking!
Question:
Transcribed Image Text:
3. The manufacturing of Styrofoam coffee cups causes damage to a local river when the manufacturing plant produces more than 500 units in a period. To discourage the plant from producing more than 500 units, the local community is considering placing a tax on the plant. The long-run cost curve for the firm is: C(g. f) = 1500+tq, where q is the number of coffee cups produced and it is the per unit tax on paper production. The relevant marginal cost curve is: MC(q. f)=+t. If the manufacturing plant can sell all of its output for $1 what is the firm's optimal output if the tax is set at zero? What is the minimum tax rate necessary to ensure that the firm produces no more than 500 units? How much are the firm's profits reduced by the presence of a tax? 3. The manufacturing of Styrofoam coffee cups causes damage to a local river when the manufacturing plant produces more than 500 units in a period. To discourage the plant from producing more than 500 units, the local community is considering placing a tax on the plant. The long-run cost curve for the firm is: C(g. f) = 1500+tq, where q is the number of coffee cups produced and it is the per unit tax on paper production. The relevant marginal cost curve is: MC(q. f)=+t. If the manufacturing plant can sell all of its output for $1 what is the firm's optimal output if the tax is set at zero? What is the minimum tax rate necessary to ensure that the firm produces no more than 500 units? How much are the firm's profits reduced by the presence of a tax?
Expert Answer:
Related Book For
Accounting for Decision Making and Control
ISBN: 978-1259564550
9th edition
Authors: Jerold Zimmerman
Posted Date:
Students also viewed these economics questions
-
Brand Names and Franchise Fees: Suppose you are currently operating a hamburger restaurant that is part of a competitive industry in your city. A: Your restaurant is identical to others in its...
-
123 Compare the purely graphical properties of these two notations, and the ways in which the graphical properties of each display correspond to the information structure being defined. Describe...
-
17. [1.1/2 Points] DETAILS PREVIOUS ANSWERS MY NOTES ASK YOUR TEACHER Write the composite function in the form f(g(x)). [Identify the inner function u-g(x) and the outer function y=f(u).) (Use...
-
A stalactite in a cave has drops of water falling from it to the cave floor below. The drops are equally spaced in time and come in rapid succession, so that at any given moment there are many drops...
-
In Exercises find the derivative of the function. y = sinh - (4x)
-
True or False: If \(P W>0\), then \(I R R>M A R R\).
-
Bad-Debt Reporting Presented below are a series of unrelated situations. 1. Helen Companys unadjusted trial balance at December 31, 2010, included the following accounts. Debit Credit Allowance for...
-
DATABASE: SQL Data Manipulation Language (DML) : Insert, Update & Delete Statements What are the Command to insert, update and delete data within the database tables please explain? Table Student...
-
The majority of forensic accounting practice involves the valuation of some type of damages or value of a business. Economic damages are a salient service provided by forensic accountants. Lost...
-
Examine your organization and leadership through the following questions: 1. How does your organization/leaders link rewards and appreciation to standards of excellence? 2. Are standards clear and...
-
Determine e, the shear center of the idealized thin-walled beam section shownalized in Figure 3. 40 V e z' X 1 10 4 2 3 y' 20 All dimensions in mm Original thickness of all walls = 1 mm Area of booms...
-
Jack is reviewing the predetermined overhead rate used to estimate the welding overhead cost Year 1. The estimated total welding overhead cost is $ 300,000 and the estimated level of activity is...
-
Natalie is 30 years old and is employed by HMRC as a specialist tax compliance officer. Natalies adjusted net income for 2017/18 is 110,000. What is Natalies personal allowance for 2017/18?
-
Describe how you might be able to measure the benefits and costs of implementing the 9/80 schedule described below: Traditionally, employees work 8-hour days for 5 days a week. However, many...
-
Develop a direct marketing promotion piece for product, Carbon Fiber Bicycle. (i)What value does this promotion have for you the seller (i.e., Direct Order, Lead Generation, or Traffic Generation)....
-
Find the transfer function G(s) = Y(s)/R(s) for each of the following systems represented in state space. 2 -3 (1) 3 x+ -3 -5 -4 y = [1 3 6)x 3 -5 2" 51 (2) -8 7 x+ -3 -6 2 y = [1 -4 3]x 2. 3.
-
Name some of the various types of financial intermediaries described in the chapter and indicate the primary reason(s) each was created.
-
Routers Inc. manufactures and sells two types of high-speed, secure wireless routers: a home router and a commercial router. Routers Inc. purchases components (printed circuit boards, antennas, power...
-
The Medford Mug Company is an old-line maker of ceramic coffee mugs. It imprints company logos and other sayings on mugs for both commercial and wholesale markets. The firm has the capacity to...
-
Prestige manufactures a line of female cosmetics, including lipsticks, face creams, eyeliners, and so forth. Prestige manufactures its own products to maintain proprietary information and to assure...
-
As a security analyst covering the French market, youve identified the following factors and factor sensitivities for Elf Acquitaine (Elf): Elfs functional currency is the euro. Factors and factor...
-
Using the data shown in Figure 2.11 which anatomical site of the corn on the foot was the least frequently reported patients in the corn plaster group? The least frequently reported anatomical site...
-
The regional directors of a major investment bank are discussing investment strategies for their respective countries. a. As director of North American investments, describe to your foreign...
Study smarter with the SolutionInn App