Use the following information to answer the next questions:

A river is being used by both a chemical factory for waste disposal and a salmon fishery for fish reproduction. Waste emissions from the factory detrimentally affect fish reproduction at the downstream salmon fishery. The chemical factory's emission levels are currently unregulated. The marginal damage caused to the salmon fishery is given by MD=4e, where e is the level of emissions discharged into the river per month by the chemical factory. To reduce its emissions, the chemical factory would face marginal abatement costs of MAC=800-16e.

13. What is the chemical factory's current level of uncontrolled emissions? _____________

14. What is the total damage to the salmon fishery caused by the chemical factory's current levelof uncontrolled emissions? $ ________________

15. What is the efficient level of emissions? __________________

16. How much would it cost the chemical factory to reduce its current level of emissions to theefficient level? $ _________________

17. What would be the reduction in damages to the salmon fishery if the chemical factory reduced its current level of emissions to the efficient level? $ ______________________

Suppose the government enacts a liability law that requires the chemical factory to pay for any

environmental damages it causes. The factory has the choice of continuing to emit its current

level of emissions or abate to save on damage payments.

18. What level of emissions will the chemical factory choose to emit under the liability law? _____________

19. Given the factory's choice of emissions under the liability law, what amount of damage payments will the chemical factory choose to pay to the salmon fishery? $ _______________

Suppose that instead of a liability law the government enacts an emissions tax requiring the chemical factory to pay a tax of $T per unit of emissions. The factory has the choice of continuing to emit its current level of emissions or abate to save on tax payments.

20. What per unit tax should the government impose if it wants to achieve the efficient level of emissions? $ _______________

21. How much revenue would the tax raise? $ _______________

22. What would be the chemical factory's total private costs of complying with the tax?

$ _______________

Suppose that instead of a constant tax of $T per unit of emissions, the government enacts a two-rate tax system, where the higher rate (call it TH) is designed to achieve the efficient level of emissions, and the lower rate (call it TL) is designed to collect just enough tax revenues to cover the damages from remaining emissions.

23. At what amount per unit should the government set for the higher rate? $ _______________

24. At what amount per unit should the government set for the lower rate? $ _____________

25. The two-rate tax system would generate a net gain to society of $ ____________.

2. A survey of a sample of business students resulted in the following information regarding the genders of the individuals and their selected major. (25 pts) Selected Major Gender Economics Finance Others Total Male 60 140 40 240 Female 40 60 60 160 Total 100 200 100 400 a. What is the probability of selecting an individual who is majoring in Economics? b. What is the probability of selecting an individual who is majoring in Finance, given that the person is male? C. What is the probability that an individual is a female and majoring in Others? d. What is the probability that an individual is either a female or majoring in Finance? e. What is the probability of selecting an individual who is either majoring in Finance or in Economics?Cross hedge ( Part 1 & 2) Part 1 (Warming up) It is the end of May 1997. A cottonseed meal producer in Georgia would have the information about the acreage committed to cotton, and his expected production of cottonseed meal is 1,000 tons. On May 28, 1997, cottonseed meal is trading at the price of $197 per ton in Atlanta. The producer expects cottonseed meal prices to be much lower by the end of October 1997. To protect himself against the falling price, the cottonseed meal crusher decides to cross hedge using soybean meal futures. The May 28 soybean meal futures closing price is $280.30 per ton (CBOT; 1 contract = 100 tons of soybean meal). (Caution: it is not soybeans futures.) The producer decides to place the cross hedge on May 28, 1997. To place the cross hedge, he needs to determine the number of soybean meal futures contracts necessary to offset 1,000 tons of cottonseed meal. The cottonseed meal producer knows the following information. The correlation between the price changes of cottonseed meal and soybeans meal (p) = 0.84. The standard deviation of the price change of cottonseed meal (Oas) = $7.2. The standard deviation of the price change of soybean meal (OAF) = $6.0. Question) Find out the optimal hedge ratio. Question) Compute the optimal number of futures contract. Question) Compute the measure of hedging effectiveness.QUESTION 25 An underperforming economy is one where O A. Actual real GDP is below the full employment level of GDP. O B. Workers' job performance lags due to slow changes in technology. O C. Actual real GDP is higher than the full employment level of GDP. O D. The full employment level of GDP is almost equal to actual real GDP.Please provide the best answer to the following questions regarding Contracts. Question 31 (3 points) . Saved contract? What are the primary grounds on which the Contractor can typically terminate the O when the schedule update delays are more than 30 days O when there is an accident on the jobsite O when there is lack of communication between subcontractors and the Owner O when the Owner fails to make payments to the contractor that have been earned and are due Question 32 (4 points) What types of projects tend to be scheduled in terms of working days? O residential and community projects industrial construction projects O building construction projects O) engineering projects such as highways, bridges, dams, airport runways, canals, and utility installations Question 33 (3 points) To the contractor, the significance of an unavoidable delay is one for which | the contractor can have some confidence of receiving a time extension and possibly monetary compensation O True False Question 34 (2 points) The primary concern of General Contractors is that they will want to know if the float is owned by the Contractor or by the Owner. True False Question 35 (5 points) When the ownership of float rests with the Owner, Owner delays and Owner changes often do not include compensation in the form of time extension when only noncritical activities are impacted. True FalseD Question 8 1 pts If the financial distress is temporary, it is called technical insolvency. If it is a permanent problem, it is called insolvency in bankruptcy. O True O False D Question 9 1 pts In U.S. bankruptcy law, Chapter 7 deals with business reorganization guidelines and Chapter 11 deals with liquidation procedures. O True O False