MindTap Economics, 1 term (6 months) Printed Access Card for Mankiw's Principles of Microeconomics, 8th (MindTap Course List)
8th Edition
ISBN: 9781337096560
Author: N. Gregory Mankiw
Publisher: Cengage Learning
expand_more
expand_more
format_list_bulleted
Question
Chapter 10, Problem 7PA
Subpart (a):
To determine
The effect of development technology on the demand for pollution right, price, and quantity of pollution under corrective tax and pollution permit.
Subpart (b):
To determine
The effect of development technology on the demand for pollution right, price, and quantity of pollution under corrective tax and pollution permit.
Expert Solution & Answer
Trending nowThis is a popular solution!
Students have asked these similar questions
A mining corporation purchased $120,000 of production machinery and depreciated it using 40% bonus depreciation with the balance using 5-year MACRS depreciation, a 5-year depreciable life, and zero salvage value. The corporation is a profitable one that has a 22% combined incremental tax rate. At the end of 5 years the mining company changed its method of operation and sold the production machinery for $40,000. During the 5 years the machinery was used, it reduced mine operation costs by $32,000 a year before taxes. If the company MARR is 12% after taxes, was the investment in the machinery a satisfactory one?
Please show every step with formulas and don't use excel. The answer should be 14.8%, thank you.
An engineer is working on the layout of a new research and experimentation facility. Two operators will be required. If, however, an additional $100,000 of instrumentation and remote controls were added, the plant could be run by a single operator. The total before-tax cost of each plant operator is projected at $35,000 per year. The instrumentation and controls will be depreciated by means of a modified accelerated cost recovery system (MACRS). If this corporation (22% combined corporate tax rate) invests in the additional instrumentation and controls. how long will it take for the after-tax benefits to equal the $100,000 cost? In other words, what is the after-tax payback period?
Please write out every step and formula, don't use excel. The answer should be 3.08 years, thank you.
The effective combined tax rate in a firm is 28%. An outlay of $2 million for certain new assets is under consideration. Over the next 9 years, these assets will be responsible for annual receipts of $650,000 and annual disbursements (other than for income tax) of $225,000. After this time, they will be used only for stand-by purposes with no future excess of receipts over disbursements. (a) What is the prospective rate of return before income taxes? (b)What is the prospective rate of return after taxes if straight-line depreciation can be used to write off these assets for tax purposes in 9 years? (c) What is the prospective rate of return after taxes if it is assumed that these assets must be written off for tax purposes over the next 20 years, using straight-line depreciation?
Please write out each step with formulas and don't use Excel. The answers should be (a)15.4% (b) 11.5% (c) 10.0%, thank you
Chapter 10 Solutions
MindTap Economics, 1 term (6 months) Printed Access Card for Mankiw's Principles of Microeconomics, 8th (MindTap Course List)
Ch. 10.1 - Prob. 1QQCh. 10.2 - Prob. 2QQCh. 10.3 - Prob. 3QQCh. 10 - Prob. 1CQQCh. 10 - Prob. 2CQQCh. 10 - Prob. 3CQQCh. 10 - Prob. 4CQQCh. 10 - Prob. 5CQQCh. 10 - Prob. 6CQQCh. 10 - Prob. 1QR
Ch. 10 - Prob. 2QRCh. 10 - Prob. 3QRCh. 10 - Prob. 4QRCh. 10 - Prob. 5QRCh. 10 - Prob. 6QRCh. 10 - Prob. 1PACh. 10 - Prob. 2PACh. 10 - Greater consumption of alcohol leads to more motor...Ch. 10 - Prob. 4PACh. 10 - The many identical residents of Whoville love...Ch. 10 - Prob. 6PACh. 10 - Prob. 7PACh. 10 - Prob. 8PACh. 10 - Prob. 9PA
Knowledge Booster
Similar questions
- - 1. (Maximum length one page) Consider an infectious disease with the following characteristics: Individuals can exist in three states, susceptible, infected, and recovered. Once recovered, an individual cannot be re-infected and remains immune for life. The transmission rate, t, is 1/20. The recovery rate, k, is 1/5. Each person interacts randomly with others in the population and has contacts with 10 people each time period. There is no birth or death in the population. -Initially all people are susceptible. - No one dies from the disease and there is no treatment. a) Draw a compartmental model for this infectious disease.arrow_forwardConsider an obstetrician who can perform two types of deliveries: normal deliveries and cesarean deliveries. Each typeof delivery provides different levels of income for the physician, and the physician has some ability to induce patientsto opt for cesarean deliveries. The model is as follows:The physician’s utility is defined as:U = U(Y, I)where:• Y is the income from performing deliveries.• I is the total disutility from inducementThe income Y from deliveries depends on the type of delivery:Y = Yn · N + YC · Cwhere:• Yn is the income per normal delivery, Yn = 1, 000• YC is the income per cesarean delivery, Yc = 1, 500,• Initial number of births Binitial = 100,• Post-shock number of births Bshock = 90,• a(i) = 0.1 + 0.05i is the fraction of total births that are cesareans, which increases with inducement level i,• the physician sets the inducement level to i = 2.• N = B · (1 − a(i)) is the number of normal deliveries,• C = B · a(i) is the number of cesarean deliveriesDue to a…arrow_forwardConsider an obstetrician who can perform two types of deliveries: normal deliveries and cesarean deliveries. Each typeof delivery provides different levels of income for the physician, and the physician has some ability to induce patientsto opt for cesarean deliveries. The model is as follows:The physician’s utility is defined as:U = U(Y, I)where:• Y is the income from performing deliveries.• I is the total disutility from inducementThe income Y from deliveries depends on the type of delivery:Y = Yn · N + YC · Cwhere:• Yn is the income per normal delivery, Yn = 1, 000• YC is the income per cesarean delivery, Yc = 1, 500,• Initial number of births Binitial = 100,• Post-shock number of births Bshock = 90,• a(i) = 0.1 + 0.05i is the fraction of total births that are cesareans, which increases with inducement level i,• the physician sets the inducement level to i = 2.• N = B · (1 − a(i)) is the number of normal deliveries,• C = B · a(i) is the number of cesarean deliveriesDue to a…arrow_forward
- epidemiology. 2 to 3 setences max for each questionarrow_forwardepidemilogy. one paragraph MAX for each question please.arrow_forwardA firm operates with the production function Q = K2 L. Q is the number of units of output per day when the firm rents K units of capital and employs L workers each day. The manager has been given a production target: to produce 8,000 units per day. She knows that the daily rental price of capital is $400 per unit and the wage rate is $200 day. a. What is the returns to scale of this production function? Show mathematically. b. Currently the firm employs 80 workers per day. What is the firm’s daily total cost if it rents just enough capital to produce at its target? c. Compare the marginal product per dollar spent on K and on L when the firm operates at the input choice in part (b). What does this suggest about the way the firm might change its choice of K and L if it wants to reduce the total cost in meeting its target? Explain your answer very clearly. d. In the long run, how much K and L should the firm choose if it wants to minimize the cost of producing 8,000 units of output a day?…arrow_forward
- Andrew’s utility depends on consuming L, hours of leisure and Y a composite good. Andrew can work as many hours as he wants to at the wage rate of w, and the price of Y is $1. Andrew’s indifference curves exhibit diminishing MRS. When Andrew’s wage rate decreases, he spends less time working. Answer the following questions using a indifference curve-budget line diagram. Explain your answers carefully. a. Does the substitution effect cause him to work less hours? (If the direction of the effect is ambiguous, say so, and show why on your diagram) b. Does the income effect cause him to work less hours? (If the direction of the effect is ambiguous, say so, and show why on your diagram)arrow_forwardNot use ai pleasearrow_forwardNot use ai pleasearrow_forward
- epidemology/economicsarrow_forwardDon't use ai to answer I will report you answerarrow_forwardWhich of the following is true about the concept of concentration? Group of answer choices The lower the degree of rivalry amongst the firms, the higher the concentration. The lower the number of firms in a market, the lower the concentration. All of the answers are correct. The higher the degree of rivalry amongst the firms, the lower the concentrationarrow_forward
arrow_back_ios
SEE MORE QUESTIONS
arrow_forward_ios
Recommended textbooks for you
Economics (MindTap Course List)EconomicsISBN:9781337617383Author:Roger A. ArnoldPublisher:Cengage Learning
Exploring EconomicsEconomicsISBN:9781544336329Author:Robert L. SextonPublisher:SAGE Publications, Inc
Principles of MicroeconomicsEconomicsISBN:9781305156050Author:N. Gregory MankiwPublisher:Cengage Learning
Economics (MindTap Course List)
Economics
ISBN:9781337617383
Author:Roger A. Arnold
Publisher:Cengage Learning
Exploring Economics
Economics
ISBN:9781544336329
Author:Robert L. Sexton
Publisher:SAGE Publications, Inc
Principles of Microeconomics
Economics
ISBN:9781305156050
Author:N. Gregory Mankiw
Publisher:Cengage Learning