OXAGON is an industrial city that will be built in NEOM. One of the factories interested to join there has been producing a dependable product used by farmers, municipalities, and suburbanites alike to coardl grass in fields and gardens. Contributions to NEOM revenue have been minimized by international dumping of generic glyphosate, as announced in mid-2021 due to Pandemic of COVID-19. The factory sales price was decreased from $4,072 to $60,308 per gallon to compete with the highly competitive pricing, and it is expected that the international price will be around $6,968 per gallon. Assume when the price was set at $4,072 per gallon, there was a prediction that in 5 years the price would inflate to $9,853 per gallon. Determine the interest adjusted rate for inflation, if the inflation is 11% and the interest is 3% per year real return is expected by the factory.

OXAGON is an industrial city that will be built in NEOM. One of the factories interested to join there has been producing a dependable product used by farmers, municipalities, and suburbanites alike to coardl grass in fields and gardens. Contributions to NEOM revenue have been minimized by international dumping of generic glyphosate, as announced in mid-2021 due to Pandemic of COVID-19. The factory sales price was decreased from $4,072 to $60,308 per gallon to compete with the highly competitive pricing, and it is expected that the international price will be around $6,968 per gallon. Assume when the price was set at $4,072 per gallon, there was a prediction that in 5 years the price would inflate to $9,853 per gallon. Determine the interest adjusted rate for inflation, if the inflation is 11% and the interest is 3% per year real return is expected by the factory.

Principles of Economics 2e

2nd Edition

ISBN:9781947172364

Author:Steven A. Greenlaw; David Shapiro

Publisher:Steven A. Greenlaw; David Shapiro

Chapter12: Environmental Protection And Negative Externalities

Section: Chapter Questions

Problem 26RQ: What arguments d0 low-income countries make in international discussions of global environmental...

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