Suppose the Government Wants to Impose a Tax on Fossil $\ln ( 1 - \mathrm { P } ) = - 0.0031 - 0.0045 \mathrm { x }$

question 405

Multiple Choice

Suppose the government wants to impose a tax on fossil fuels to reduce carbon emissions. The cost benefit is modeled by $\ln ( 1 - \mathrm { P } ) = - 0.0031 - 0.0045 \mathrm { x }$ , where $x$ represents the dollars of tax per ton of carbon emitted and $\mathrm { P }$ represents the percent reduction in emissions of carbon. ( $P$ is in decimal form.) Determine $P$ when $x = 44$ . Round to three decimal places.

• A) 1.818
• B) -0.13
• C) 0.182
• D) -0.177

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Definitions:

Investing Activities

Financial transactions and events related to the acquisition or disposal of long-term assets and investments included in a company’s cash flow statement.

Long-Term Assets

Long-term assets are assets that a company expects to use for more than one year, including property, plant, equipment, and intangible assets.

Notes Receivable

Financial assets representing amounts due to be paid to a company by customers or other entities in the form of promissory notes.

Direct Method

A method of preparing the cash flow statement where actual cash flow information from the company's operations is used, as opposed to indirect method adjustments.