The Following Table Shows the Marginal Private Cost (MPC)and the Marginal

question 89

Essay

The following table shows the marginal private cost (MPC)and the marginal social cost (MSC)of a chemical factory.
Answer the following questions:
(1)What is the marginal cost of the factory's externality? Is it constant at all quantities?
(2)If the factory is a perfectly competitive firm and is not required by the government to internalize its external cost,how many tons should the factory produce,given that the market price of a ton of chemicals is $130?
(3)If the factory is a perfectly competitive firm and is required by the government to internalize its external cost,how many tons should the factory produce,given that the market price of a ton of chemicals is $130?
(4)Draw a graph illustrating your answers.

Calculate and understand mortgage-related ratios such as Gross Debt Service Ratio and Total Debt Service Ratio.

Evaluate the benefits of prepayments or extra payments on loans and mortgages.

Understand the effect of term changes, interest rate changes, and refinancing on the amortization period.

Calculate the equivalent cash value of complex financial offers.

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Definitions:

Fixed Manufacturing Overhead

Expenses related to manufacturing that remain constant regardless of the level of production, such as building lease payments and equipment depreciation.

Deferred Inventories

Inventory costs that are not expensed in the period they are incurred but are deferred to a future period.

Absorption Costing

This accounting practice involves adding all costs associated with production, including direct materials, labor, and both kinds of overhead expenses (variable and fixed), into the cost calculation of a product.

Unit Product Cost

The total cost (fixed and variable) associated with making one unit of product.