Discuss the political support for the tax

Assignment Help Business Management
Reference no: EM132950001

The marginal external cost associated with the emissions of sulfur dioxide is estimated to be $15 per kilo of this chemical per year. Assume that each ton of steel produced per year results in 2.5 kilos of sulfur dioxide emissions. Suppose that the supply of steel is infinitely elastic at a price of $500 per ton. The current equilibrium output of steel produced by a competitive industry is 10,000 tons.

a) Show how a corrective tax can be used to achieve efficiency. Predict the impact of the tax on the equilibrium price and quantity of steel. Explain how steel companies will react to the tax. Indicate the amount of tax revenue that will be collected.

b) Discuss the political support for the tax. In your discussion, show the net gain in wellbeing possible from the tax and indicate which groups will gain and which groups will lose as a result of its imposition.

Reference no: EM132950001

Questions Cloud

Discuss the benefits of executive coaching : Discuss the benefits of Executive coaching. How would you recommend your organization take full advantage of Executive coaching?
Compute the correct amount of inventory : Items ordered, invoice received but goods not received Freight is paid by seller. 300,000. Compute the correct amount of inventory
Discuss the different types of life insurance : Discuss advantages and disadvantages of using life insurance to meet estate planning and business insurance needs.
Which an entity must disclose comparative information for : On December 2020, kooky company issued its statement f financial position. The following shall be classified as non-current, except for
Discuss the political support for the tax : The marginal external cost associated with the emissions of sulfur dioxide is estimated to be $15 per kilo of this chemical per year.
How much is the taxable net income of Michelle : Michelle, a resident alien individual, supports two qualified dependent children. How much is the taxable net income of Michelle
Ideas about quality early childhood education programs : Ideas about quality Early Childhood Education programs. These ideas will help you formulate your own personal philosophy of Early Childhood Education
Analysing actions undertaken : 1) As a philosophical ethical principle, when analysing actions undertaken, it is accepted that an act will be either good or bad regardless of the underlying /
What the said financial statement is accounted for as : Entity 1 reported 50 million total assets in the financial statements as of december 2021. The said financial statement is accounted for as

Reviews

Write a Review

Business Management Questions & Answers

  Competitors can work to benefit

Can you consider situations in which having competitors can work to your benefit?

  Impact of the social setting on job perceptions

To enhance our understanding of the impact of the social setting on job perceptions please review your past job experiences and consider:

  Determine most critical merger or acquisition

Determine the most critical merger or acquisition that has contributed to Caterpillar's performance and success in achieving organizational goals.

  Explain the sampling design

1. Can you identify and explain the sampling design that could be used in evaluating how the Veterans Health Admin curtail delays in Vets receiving medical appts and how the design addresses issues of validity and reliability.

  Quest for optimum performance

Committees can either hinder or help an organization's quest for optimum performance, partially dependent upon the leadership.

  Discuss potential costs and benefits whenever appropriate

It is important that you discuss potential costs and benefits whenever appropriate, again keeping in mind that what might be beneficial for some parties or entities is likely to be costly to others.

  Discuss an experience you had with a virus attack

Discuss an experience you had with a virus attack. Describe how you dealt with it.

  Inappropriate manner with the minority shareholders

1. If a company wants to sue, what appropriate statutory remedy is available? Explain with relation to authority. 2. Is there any equitable limitation for majority shareholders acting in an inappropriate manner with the minority shareholders?

  What are quantitative information

What are quantitative information? Also, there is quantitative financial information & quantitative non-financial information? Please explain semi-detailed.

  Whats the rise of the micro-cation in the tourism industry

Whats the Rise of the "Micro-cation" in the tourism industry. Are Micro-cations the newest millennial travel trend?

  Explain what is meant by term personalized medicine

Explain what is meant by term "personalized medicine" and give one example of how it could be used to treat human disease.

  Flat rate plus the credit extra

A function that return tuition. From 1-6 credits $500 per credit, from 7 to 12 flat rate of $10000. For more credits is the flat rate plus the credit extra at $

Free Assignment Quote

Assured A++ Grade

Get guaranteed satisfaction & time on delivery in every assignment order you paid with us! We ensure premium quality solution document along with free turntin report!

All rights reserved! Copyrights ©2019-2020 ExpertsMind IT Educational Pvt Ltd