Answer:
B) $200 million
Explanation:
Since Acme's risk manager is concerned about the damage which could be caused by a single hurricane and he believes there is an extremely low probability that a single hurricane could destroy two or all three plants because they are located so far apart.
Extremely low probability implies NO probability for two or three plants, hence, no likelihood exists
The probable maximum loss associated with a single hurricane is the total cost of 1 plant - $200 million, assuming 100% probability
Effective_____________is multi-faceted and includes managing the impact of changes on system operation, interoperability, long-term maintenance, and the technical data package (TDP).
Answer: The correct answer is "configuration management".
Explanation: Effective configuration management is multi-faceted and includes managing the impact of changes on system operation, interoperability, long-term maintenance, and the technical data package (TDP).
It can be said that the effective management of the configuration has an impact and affects multiple functional disciplines such as logistics, manufacturing, etc.
Answer:
Configuration management
Explanation:
This question simply tests the understanding of the concept of configuration management.
Configuration management is a systems engineering process for establishing and maintaining consistency of a product's performance throughout its life.
The CM process facilitates orderly management of system information and system changes for such beneficial purposes as to revise capability; improve performance, reliability, or maintainability; extend life; reduce cost; reduce risk and liability; or correct defects.
Let us review the meaning of the keywords in the question and see if they fall within the coverage of configuration management:
System operation interoperability is the ability of systems to use the services or information exchanged to operate together effectively.
long term maintenance involves ensuring the system operates for a long time
Technical Data Packages in simple terms involve the manuals and instructions for operating the system.
The Keywords given in the question are all roles configuration management plays in a system.
This makes the answer - configuration management, the best fit for the blank in the question.
Suppose the price of Twinkies is reduced from $1.45 to $1.25 and, as a result, the quantity of Twinkies demanded increases from 2,000 to 2,200. Using the midpoint method, the price elasticity of demand for Twinkies in the given price range is
a. 2.00.
b. 1.55.
c. 1.00.
d. .64.
Answer:
d. .64.
Explanation:
Price elasticity of demand measure the responsiveness of demand against change in the price of given product. It measures the ratio of change in demand to change in price.
Change in demand = ( 2200 - 2000 ) / [ (2200+2000)/2 ] = 200 / 2100 = 0.0952
Change in price = ( 1.25 - 1.45 ) / [ (1.25+1.45)/2 ] = 0.2 / 1.35 = 0.148
Elasticity of Demand = Change in demand / change in price = 0.0952 / 0.148 = 0.643 = 0.64
A 17 year old boy first appeared in juvenile court to answer charges of vehicular homicide. The incident had occured when he was 16. By the time the case actually went to trialthe boy was 18. Should he be tried as an adult? (Commission v A Juvenile, 545 N.E.2d 1164)
Answer: The Boy should be tried as an adult
Explanation:
A Minor can be tried Automatically as an Adult. It depends on the severity of a crime committed. Minors who are tried for crimes like Murder , Armed Robbery with a Firearm , aggravated criminal sexual assault etc. Minors who are tried for crimes of this nature will automatically be tried as adults in the court of law. The Boy is being tried for Vehicular homicide, the crime committed involves death of a person, The Boy should be Tried as an Adult even though the incident happened when he was a minor
Generally, in cases like Commission v A Juvenile, the age of the person at the time of the crime is what matters. In this case, the 17-year-old boy committed vehicular homicide when he was 16, so he would typically be tried as a juvenile.
Explanation:In the case of Commission v A Juvenile, 545 N.E.2d 1164, it was decided that the age of the offender at the time of the crime determines whether they'll be tried in juvenile or adult court, not their age at the time of trial. In this scenario, since the boy was 16 when the alleged vehicular homicide occurred, he would be tried as a juvenile. However, each jurisdiction may have different rules and procedures, so this is generally speaking and it's always best to consult with a legal professional for advice targeted to a specific situation.
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Assuming that there were no beginning work in process inventory, and the ending work in process inventory is 50% complete with respect to conversion costs, the number of equivalent units of production with respect to conversion costs under the FIFO method would be:________.
Answer: equivalent units will equal to units started and completed plus work in progress at 50% completion level
Explanation:
The number of equivalent units will be units started on completed during the current Period plus 50% of work in progress. There were no work in progress units at the beginning of the period. The current period's production consist of only units started and completed and work in progress at 50% completion level.
Structural unemployment is characterized by which of the following?
A factors that discourage active job-seeking
B slowdowns in hiring due to economic contraction
C transitions caused by movement to new industries
D gaps between desired and available skills in the job market
Structural unemployment is characterized by the gaps between desired and available skills in the job market.
Option D
Explanation:
Structural unemployment happens when there are some technological changes or alterations in the industry. If the company drastically shifts from one process to the other they generally tend to deploy the workers who mismatch the required skills. The factors of structural unemployment from various perspectives are as follows,
Individual perspective:
Inability to adapt the required technological skills. Inability to relocate. Choice of field.Larger perspective:
Technological changes. Political changes. Productivity fluctuations.HoneyBee Foods, Inc., in Illinois, signs a contract with Jelly Roll Pastries, in Kentucky, to supply Jelly Roll with 1,000 pounds of flour every month. In their contract, they agree to resolve any dispute in abitration according to the law of Illinois. This ground for a court to:________.
A. Require the parties to go to arbitation.
B. Review the meerits of the dispute.
C. Review the sufficiency of the evidence.
D. Set aside any award
Answer:
A. Require the parties to go to arbitation.
Explanation:
From the following OPTION, the OPTION which is satisfying the given scenario in the question is OPTION (A).
Because as they already had a contact on the basis of resolving the disputes among both of them. The parties have to require to go to arbitation.
Arbitation is basically the type of resolving the disputes in the outdoor of the courts.
Jacob decides to sell his well-known dry cleaning business to Fred. In the sale agreement for the business, there is a clause stating that Jacob cannot open a competing dry cleaning business within ten miles of the business he is selling to Fred. This part of the agreement is known as:
Answer:
The correct answer is: covenant not to compete.
Explanation:
The non-competition clauses, within the framework of economic concentration processes, are agreements under which one of the parties, naturally the seller, undertakes not to incur acts of competition with the other, in the market in the which participated the company object of the transaction.
Martha claims that she has been assigned marginal job roles or light workloads that don't lead to promotion. Which of the following terms accurately explains the type of discrimination she has been subjected to?
A) intimidation
B) sexual harassment
C) exclusion
D) inclusion
E) insult
Answer:
C) exclusion
Explanation:
The group aspect of social exclusion is expressed through socially disadvantaged groups. Certainly, one can also talk about the spatial grouping of factors of social exclusion. It is more or less accepted in the literature that social exclusion begins with marginalization in the labor market, and especially exclusion from the labor market.The following information pertains to one item of inventory of the Simon Company: Per unit Cost $ 200, Replacement cost 170, Selling price 190, Disposal costs 10, Normal profit margin 30. Using the lower of cost or market method, this item should be valued at:_______.A. $150.
B. $200.
C. $170.
D. $190.
Answer:
correct option is C. $170
Explanation:
given data
Per unit Cost = $200
Replacement cost = 170
Selling price = 190
Disposal costs = 10
Normal profit margin = 30
solution
we get here Lower of cost or market method that is express as
Lower of Per unit Cost or Replacement cost or Selling price - (profit margin -Disposal costs ) ......................1
take value here
Lower of $200 or $170 or ( $190 - ( $30 - $10 ) )
so here Lower of $200 or $170 or $170
so lower is $170
so correct option is C. $170
Brief Exercise 7-07 Grouper Family Importers sold goods to Tung Decorators for $33,600 on November 1, 2020, accepting Tung’s $33,600, 6-month, 5% note. Prepare Grouper’s November 1 entry, December 31 annual adjusting entry, and May 1 entry for the collection of the note and interest
Answer with its Explanation:
The accounting treatment are as under:
The note was issued because the customer required 6 months time to pay along with its interest.
The initial entry would be:
Dr Notes Receivable 33600
Cr Sales Revenue 33,600
When the interest would be due at the end of the note period the interest which is 5% for a year and 2.5% for 6 months.
Dr Interest Receivable 840
Cr Interest Revenue 840
When the cash will be paid the entry would be:
Dr Cash 34,440
Cr Notes Receivable 33,600
Cr Interest Receivable 840
All the following statements concerning the relationship between wealth and financial risk tolerance are correct except:_______. A) Absolute risk tolerance increases with wealth since the wealthy have more money to spend on everything. B) People who earned their own wealth tend to be more risk tolerant than those who inherited their wealth from beloved relatives.
C) Relative risk tolerance increases with wealth if housing is included in the definition of wealth or classified as a risky asset.
D) People who acquired their wealth through a windfall are more apt to expose it to risk than those who worked hard for it.
Answer:
The correct option is C
Explanation:
Financial risk tolerance is the term which is described as the variability degree in the returns from the investment and which the investor is willing or ready to withstand for the financial planning.
Wealth is defined as the evaluated of the value of assets which is owned through or by the person, country, community and company.
So, the statement which is not true is that the relative risk tolerance increases with the wealth of the person if the housing involve in the wealth.
A manufacturer of cellular phones has decided that an assembly line is operating satisfactorily if less than 0.05% of the phones produced per day are defective. To check the quality of a day's production, the company decides to randomly sample 50 phones from a day's production to test for defects. Define the population of interest to the manufacturer. A. The 0.05% of the phones that are defective B. The 50 phones sampled and tested C. The 50 results of the random testing D. All the phones produced during the day in question
Answer:
D. All the phones produced during the day in question
Explanation:
Population of interest is the population that conclusions are made for. The population can be objects, people, or measurements.
A sample is drawm from this population and tested for a particular characteristic. The result is now used to draw conclusions about the population of interest.
On this case the population of interest is all the phones produced in a day, the sample is the 50 phones selected for testing.
The characteristic tested is defects less than 0.05%. If the sample shows that defects are less than 0.05% then it is concluded that the population is okay.
Final answer:
The population of interest to the manufacturer is all the phones produced during the day in question, as this is the group they wish to ensure has less than 0.05% defects.
Explanation:
The population of interest to the manufacturer is D. All the phones produced during the day in question. The reason this is the population of interest is that the manufacturer's goal is to ensure that the entire day's production meets the quality standard of having less than 0.05% defective phones. While option B refers to the sample of phones tested, and option C to the results of those tests, neither of these are the actual population the manufacturer is concerned with. Instead, they are tools used to infer the quality of the total production run indicated by option D.
Wilbur decides to sell his collection of rare stamps through an online auction site. When he is filling out the information about his collection, he types $40 instead of $400 in the minimum price box. Wilbur does not notice his mistake until after the auction is over and someone has purchased his stamp collection for $75. Wilbur:
Answer:
Wilbur cannot rescind the contract based on his unilateral mistake.
Explanation:
Lets suppose that I made an offer of $1000 which you accepted to buy my car on a phone call for $1000 and later in the same day a person offered me more money for the same car and I sold the car to him. You went to court and I said that I mistakenly made an offer of $1000 which means that every person who revoke the clauses will make lame excuses in the court. If this act is permitted then the law gives the people free hand whatever they desire to do with the contract. So for this reason this act was considered unethical and the court said that the mistakes that are unilateral are not be rescind.
Which of the following statements is correct? a. Taxes are more difficult to administer than regulations. b. Taxes provide incentives for firms to adopt new methods to reduce negative externalities. c. Command-and-control policies provide incentives for private decisionmakers to solve their problems on their own. d. Corrective taxes distort incentives.
Answer:
b. Taxes provide incentives for firms to adopt new methods to reduce negative externalities.
Explanation:
Knowledge of the computer software used by a business is an example of:
A.
human capital.
B.
production technology.
C.
technical knowledge.
D.
physical capital.
Answer:
the correct answer is C. technical knowledge.
Explanation:
a computer software stores the technical aspects of knowledge. The experience, wisdom and judgement are the ones hold by humans.
The business intelligence softwares are on the rise in the field of business, trade and commerce as it saves time and relief the pressure of managing technical knowledge from employees and gives access to real time data to the top executives to help them in their strategic planning process.
Final answer:
the correct answer is option a. Knowledge of business software is an example of human capital, which refers to the skills and expertise needed to perform work and produce economic value. Human capital is crucial for operating and innovating with new physical capital or technology.
Explanation:
Knowledge of the computer software used by a business is an example of human capital. Human capital encompasses the skills, knowledge, and expertise that individuals possess, which contribute to their ability to perform work and produce economic value. It often includes but is not limited to educational qualifications, training, and practical experience in certain fields or activities. As workers acquire more education and skills, they can harness and create technological innovations—ideas that typically require new investments in physical capital, like machinery or equipment, to truly enhance productivity.
Investing in human capital, much like in physical capital, can lead to higher future productivity. However, human capital can depreciate if it becomes obsolete or no longer applicable, emphasizing the importance of continuous learning and adaptation. For economic growth, it is crucial that human capital, physical capital, and technology not only exist but also synergize to maximize their impacts on production and efficiency.
Jacobs Company has inventory of 15 units at a cost of $12 each on June 1. On June 5, Jacobs purchased 10 units at $13 per unit. On June 12, it purchased 20 units at $14 per unit. On June 17, it sold 30 units. Using FIFO, what is the value of the inventory at June 17 after the sale
Answer:
The value of the inventory on hand is $210
Explanation:
Inventory on hand / purchased;
June 1 - 15 units at $12
June 5 - 10 units at $13
June 12 - 20 units at $14
total units on hand = 45 units
Sale - 30 units sold
units left on hand 15.
Since there are only 15 units left on hand, and the $12 and $13 inventory units have all been sold since they were in first before the inventory purchased on June 12 the value of the inventory on hand is 15 x $14 = $210.
Answer:
$210
Explanation:
Given that
15 units cost $12 each = $180
10 units costs $13 each = $130
5 units cost $14 each = $70
Thus using FIFO which is first in, first out
Value of inventory sold = 180 + 130 + 70
= $380.
15 units are left costing $14 each
Therefore,
Value of inventory after sale
= 15 × 14
= $210
gains a client who prepays $ 450 for a package of six physical training sessions. Body Fitness collects the $ 450 in advance and will provide the training later. After four training sessions, what should Body Fitness report on its income statement assuming it uses the accrual basis accounting method?
Answer:
A revenue of $300
Explanation:
When a client pays in advance, the revenue is yet to be earned hence a debit entry is posted to cash and a credit to deferred revenue. Once revenue is earned, debit deferred revenue and credit revenue.
If $450 was paid in advance for 6 sessions, after 4 sessions,
Revenue earned = 4/6 × $450 = $300
This will be recognized by debiting deferred revenue and crediting revenue. Hence the income statement would show a revenue of $300.
Final answer:
Body Fitness should report $300 as earned revenue on its income statement after four training sessions, as per the accrual basis accounting method.
Explanation:
Under the accrual basis accounting method, income is recognized when it is earned, irrespective of when the payment is received. In this scenario, Body Fitness has received a payment of $450 for six sessions, out of which only four sessions have been provided thus far. Since income is recognized as the service is performed, we need to calculate the income earned for these four sessions.
To find out what should be reported on the income statement, we divide the total payment by the number of sessions to find the per-session income: $450 / 6 = $75 per session. Therefore, after four sessions, the income statement should report 4 sessions × $75/session = $300 in earned revenue. The remaining $150 will be recognized as a liability (unearned revenue) on the balance sheet until the remaining sessions are conducted.
Legal action against a company may likely NOT be incurred when ________. a. employees incur injuries during training conducted by the company b. employees incur injuries or damages in training conducted by a vendor or consultant c. the company uses small amounts of copyrighted material d. decisions about training and development opportunities are made on the basis of age
Answer:
c) the company uses small amounts of copyrighted material
Explanation:
According to the fair use doctrine, the government of the US permits uses of the copyrighted material if the amount of copyrighted material is in very small amount and also does not constitutes to unfair advantage over the company which has copyrighted the material formula. Whereas on the other hand, the employer will face legal action if the employee faces any injury at work and this is well addressed in employees right act.
Furthermore, age descrimination is a illegal act so the company will again face legal actions in this case too.
Watson's Bakery found five different market segments among customers for its bakery goods. When developing a market-oriented strategy, the marketing manager used a ________ approach, putting two target markets together and developing a single marketing mix that would meet the needs of the new larger segment.
Answer:
The correct answer is: combined target market.
Explanation:
Marketing strategies are based on market segmentation, this means that in most products and services we do not address the global market, but rather specific groups of consumers. This is logical if we consider that the marketing is based on the client and if we want to adapt the offer we have to segment. This means that every day we have to analyze a larger number of smaller groups to reach globality. Today this technique is called microsegmentation. Hence the expansion in the development of increasingly specific and specialized products, the addition of service and customization to products, that is, converting products into products-services, and the expansion of direct marketing, which is the one that achieves more precise segmentation. and more personalized attention. Microsegmentation classifies groups by their different lifestyles.
The market strategies in a broad product-market are:
1. The method of the single target market: segment the market and choose one of the homogeneous segments, as the target market of the firm.
2. The multiple target market method: segment the market and choose two or more segments, each of which will be treated as a separate target market, which needs a different commercial mix.
3. The combined target market method: combine two or more sub-markets in a larger target market as the basis for a strategy
Final answer:
The marketing manager at Watson's Bakery used a combined target market strategy to merge two segments into one, developing a single marketing mix to cater to the newly formed larger segment.
Explanation:
When Watson's Bakery identified five different market segments among customers for its bakery goods, the marketing manager decided to use a combined target market strategy, also known as a concentrated marketing or segmented marketing approach. In this context, the marketing manager opted to amalgamate two target markets into a single, larger segment and create a marketing mix that caters to the broader combined audience. This strategy involves developing a single set of marketing strategies, such as product features, pricing, promotion, and distribution channels, that will appeal to this larger, combined customer base.
Chancellor's is a high-end men's clothing store that frequently resorts to discount blowouts to get rid of excess merchandise. Which of the following best explains the reason for these sales? A. Overestimating demand B. Ineffective tracking of the inventory C. An increase in the price of raw materials D. A decrease in inventory costs E. Increased competition in the local market
The Overestimating demand best explains the reason for these sales.
Option: A
Explanation:
If your company overestimates demand, more stock will end up than it requires. This may raise the cost of your labor and storage if employees decide to transfer this product to the next warehouse to make room for new inventories. If your company sells perishable items, you may incur yet another damage due to the decay of the product that is unsold.
Thus in such a case, you may also need to sell stock at a bargain which decreases the profit margins and profits of your business. Supply Chain Management (SCM) technology can help to improve the supply chain forecasting and measurement mechanism by synchronizing the supply and demand loop using actual-time information. As a consequence, there is less risk that the product will remain unfinished.
"If domestic fuel prices rise to $5 per gallon, growth will slow significantly and our quality of life will decline." This philosophy is consistent with ________ economics.
Answer:
neoclassical
Explanation:
Neoclassical economics was first proposed by David Ricardo and later continued by Adam Smith. it focuses on the determination of output and income distribution through supply and demand. The eternal problem with neoclassical economists is that they assume what should happen, but they do not consider the human factor in the economy. E.g. both wages and prices are sticky, but neoclassical economists argue that they shouldn't be that way in order to increase efficiency, but they cannot change the real world. Their expectations about how efficiency can be achieved are always unrealistic and could apply on an ideal world, but our world is full of problems and defects, so the ideal scenario is never real.
In this case, an increase in the price of gas will hurt the economy, but consumers aren't dumb, raising gas prices resulted in consumers buying more efficient vehicles.
Frequently, project managers lack legitimate power based upon position and instead resort to persuading others based upon personal relationships. This type of power is known as: a. positional power b. referent power c. coercive power d. connection power
Answer:
B. referent power is the correct answer.
Explanation:
Referent power is the capability of a leader who has the power to influence and motivate followers.Referent power is power gained by those individuals who have influential and effective interpersonal relationships abilities.The advantage of referent power is that the referent leader has the ability to motivate and inspire the workers to be dedicated to their works.In a _________, the underwriters agree to make an attempt to sell the IPO for the firm. If the underwriter can get enough investor commitments then the IPO will occur. If sufficient investor interest does not exist the issue may be canceled
Answer:
best efforts
Explanation:
As it name suggests, a best efforts IPO takes place when an underwriter cannot commit completely to a client because the market interest in the firm is not certain. So the underwriter "promises" to make its best effort to carry out a successful IPO, but cannot guarantee it. On the other hand, when the market interest is very large, underwriters themselves purchase the entire IPO through a firm commitment IPO.
Data Accountants, a private employer, handles bookkeeping for small employers. In most circumstances, with exceptions, federal law clearly prohibits Data from subjecting its employees to:___________.1. job skills test2. monitoring of business communication3. drug tests4. lie-detector tests
Answer:
4) lie-detector tests
Explanation:
Employers cannot perform polygraph tests when they are evaluating a job applicant, and they cannot discriminate against a current employee for not taking a polygraph test.
Some states allow private polygraph tests when the employee is accused of some wrongdoing and he/she accepts it. Other states like Rhode Island, Massachusetts, Maryland, New Jersey, Oregon, Delaware and Iowa directly prohibit private polygraph tests for any reason at all.
Working out some frustrations after a bad game, Jessica angrily hits a baseball and then sees it is flying toward the umpire. She yells, "Watch out!" The umpire ducks and the ball misses him. Since there was no physical contact, no assault or battery occurred.True / False.
Answer:
True
Explanation:Because she didn't hurt anyone if she did that would be another story.
No, assault might have occurred even without physical contact.
Explanation:In this scenario, no physical contact took place, so there was no assault (intentional act causing fear of harmful or offensive contact) or battery (intentional harmful or offensive contact). Jessica's warning prevented any harm to the umpire, but no legal wrongdoing occurred. Thus, it can be said as an act of aggression.
Although no physical contact was made, the act of angrily hitting the baseball and yelling 'Watch out!' could be considered an intentional act that puts someone in reasonable fear of harmful or offensive contact. This could potentially be classified as assault under the particular tort law.
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The unemployment rate in Economy X when it is growing normally is 5%. When Economy X is in a recession, the unemployment rate is 10%. Drag each word or phrase to the appropriate blank space in order to complete the paragraph correctly.Drag word(s) below to fill in the blank(s) in the passage.
The _______ unemployment rate while Economy X is _______ s 0%. The 5% unemployment rate is due to structural and __________ factors.
Answer:
The CYCLICAL unemployment rate while Economy X is GROWING IS 0%. The 5% unemployment rate is due to structural and FRICTIONAL factors.
Explanation:
there are basically three types of unemployment:
Frictional unemployment: voluntary and takes place when someone quits his/her job because they want to find a better job. Structural unemployment: is not voluntary and happens when the workers do not possess the required skills to fill vacant jobs. Cyclical unemployment: is not voluntary and happens when the economy is contracting and the businesses are forced to lay off workers.Answer:
The CYCLICAL unemployment rate while Economy X is GROWING IS 0%. The 5% unemployment rate is due to structural and FRICTIONAL factors.
Explanation:
___________ is a system that assesses an organization's marketing information needs, develops the needed information, and helps decision makers use information to create and validate actionable customer insights
Answer:
Marketing Information Systems (MIS)
Explanation:
These are people and procedures in assesing information needs, developing the information and helping decision makers to generate and validate actionable customer and market insights.
What is Marketing Information System?
Marketing Information System (MIS) is a powerful tool which is used by the management to take timely and effective decisions by using the well structured information and analysis from MIS.
A marketing information system can support decision making at various levels; strategic, control, and operational. Usually a MIS is composed of four key components; internal reporting, marketing research, marketing intelligence, and marketing models.
Why it matters?
MIS converts the raw information into a more understandable form which helps management towards better insights therefore, allowing them to use information to validate actionable customer insights.
A MIS contains marketing data from the customers and from many other sources which helps management to identify marketing patterns and trends and based on these results they can initiate marketing campaigns to tackle the market.
A mortgage note payable with a fixed interest rate requires the borrower to make installment payments over the term of the loan. Each installment payment includes interest on the unpaid balance of the loan and a payment on the principal. With each installment payment, indicate the effect on the portion allocated to interest expense and the portion allocated to principal.
Answer:
With each installment payment i'd say that Portion Allocated to Interest decreases while Portion Allocated to principal Increases
Explanation:
The section of a company’s annual report that provides management’s views on significant events, trends and uncertainties pertaining to the company’s (a) operations, (b) liquidity, and (c) capital resources is:____________
Answer:
Disclosure notes
Explanation:
Disclosure notes provide additional information about the financial statements that are not part of them, but can affect them significantly, e.g. outstanding liens on the company's assets, inventory losses, valuation of investments in bonds and other securities, etc.
A very important part of the disclosure notes that must always be included in the financial statement's footnotes is the summary of the company's significant accounting policies, e.g. accounting policies like depreciation methods used, value of goodwill, etc.
Suppose that you are an economic-policy advisor. Environmental groups are pressuring you to implement the highest-possible carbon tax while industry groups are pressuring you to implement no carbon tax at all. Both argue that their position makes more sense economically. In fact, the most efficient tax level is _______.
Answer:
A tax equal to the external cost.
Explanation:
Suppose that you are an economic-policy advisor. Environmental groups are pressuring you to implement the highest-possible carbon tax while industry groups are pressuring you to implement no carbon tax at all. Both argue that their position makes more sense economically. In fact, the most efficient tax level is tax equal to the external cost.
External cost are referred to the cost of affecting environment, social or other uncompensated external factors, while producing goods and services. Carbon tax are such cost that bear the cost of damaging environment by releasing carbon in the atmosphere.
In the given case, company has to bear the tax which is equal to the external cost.