Graph 10-2 This Graph Reflects the Market for Kiwifruit, Where

question 95

Multiple Choice

Graph 10-2
This graph reflects the market for kiwifruit, where pesticide used by kiwifruit orchardists also unintentionally kills honey bees.
-Refer to Graph 10-2. The difference between the social cost curve and the supply curve reflects the:

• A) profit margin of each kiwifruit tray
• B) cost of spillover effects from the kiwifruit orchards (replacing bees, lost honey output)
• C) value of kiwifruit to society as a whole
• D) amount by which the government should subsidise the kiwifruit orchardists

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Definitions:

Notes Receivable

Financial assets representing amounts owed to a company by debtors, typically evidenced by formal instruments with specified payment terms.

Factoring Fee

A charge assessed for the service of factoring, where a business sells its receivables to a third party at a discount.

Accounts Receivable

The money owed to a business by its customers for goods or services delivered or used but not yet paid for, considered a current asset on the balance sheet.

Promissory Note

A Promissory Note is a financial instrument wherein one party promises in writing to pay a determinate sum of money to another, either at a fixed or determinable future time.