Problems and applications q7 for any given demand curve for the right to pollute, the government can achieve the same outcome either by setting a price with a corrective tax or by setting a quantity with pollution permits. suppose there is a sharp improvement in the technology for controlling pollution. illustrate the effect of this development on the demand for pollution rights. demand price of pollution quantity of pollution d 1 d 2 suppose the corrective tax policy and the number of pollution permits available do not change in spite of this demand shift. as a result of the technology change, the price of pollution with a corrective tax will bethe same as the price of pollution with pollution permits, and the quantity of pollution with a corrective tax will belower than the quantity of pollution with pollution permits.

Which of the following is a problem for the production of public goods?

One of the benefits of a well designed ergonomic work environment is low operating costs is true or false

For each of the following situations, indicate whether you agree or disagree with the financial reporting practice employed and state the basic assumption, component, or accounting principle that is applied (if you agree) or violated (if you disagree).wagner corporation adjusted the valuation of all assets and liabilities to reflect changes in the purchasing power of the dollar. spooner oil company changed its method of accounting for oil and gas exploration costs from successful efforts to full cost. no mention of the change was included in the financial statements. the change had a material effect on spooner's financial statements. cypress manufacturing company purchased machinery having a five-year life. the cost of the machinery is being expensed over the life of the machinery. rudeen corporation purchased equipment for $180,000 at a liquidation sale of a competitor. because the equipment was worth $230,000, rudeen valued the equipment in its subsequent balance sheet at $230,000.davis bicycle company received a large order for the sale of 1,000 bicycles at $100 each. the customer paid davis the entire amount of $100,000 on march 15. however, davis did not record any revenue until april 17, the date the bicycles were delivered to the customer. gigantic corporation purchased two small calculators at a cost of $32.00. the cost of the calculators was expensed even though they had a three-year estimated useful life. esquire company provides financial statements to external users every three years.