This topic contains a solution. Click here to go to the answer

Author Question: An example of a cost externality occurs when a mining company A) dumps waste in river upstream ... (Read 124 times)

ec501234

  • Hero Member
  • *****
  • Posts: 573
An example of a cost externality occurs when a mining company
 
  A) dumps waste in river upstream from a popular fishing spot.
  B) produces coal that is not in demand in a recession.
  C) underpays its employees.
  D) overwork its employees.

Question 2

In terms of capital budgeting, explain the difference between risk and uncertainty.
 
  What will be an ideal response?



Related Topics

Need homework help now?

Ask unlimited questions for free

Ask a Question
Marked as best answer by a Subject Expert

angrybirds13579

  • Sr. Member
  • ****
  • Posts: 344
Answer to Question 1

A

Answer to Question 2

Uncertainty involves possible future events to which no probability values can be assigned, while risk involves such events to which probabilities can be attached to their outcome. Thus, risk adjustments can be made to expected cash flow values and/or opportunity cost rates of discount. With uncertainty, no such adjustments can be made.




ec501234

  • Member
  • Posts: 573
Reply 2 on: Jul 1, 2018
:D TYSM


cdmart10

  • Member
  • Posts: 332
Reply 3 on: Yesterday
Thanks for the timely response, appreciate it

 

Did you know?

Human stomach acid is strong enough to dissolve small pieces of metal such as razor blades or staples.

Did you know?

For pediatric patients, intravenous fluids are the most commonly cited products involved in medication errors that are reported to the USP.

Did you know?

Malaria was not eliminated in the United States until 1951. The term eliminated means that no new cases arise in a country for 3 years.

Did you know?

Amphetamine poisoning can cause intravascular coagulation, circulatory collapse, rhabdomyolysis, ischemic colitis, acute psychosis, hyperthermia, respiratory distress syndrome, and pericarditis.

Did you know?

Astigmatism is the most common vision problem. It may accompany nearsightedness or farsightedness. It is usually caused by an irregularly shaped cornea, but sometimes it is the result of an irregularly shaped lens. Either type can be corrected by eyeglasses, contact lenses, or refractive surgery.

For a complete list of videos, visit our video library