James and Lauren are trying to decide if they should go on vacation or cancel the trip. James
argues that they cannot afford to cancel the trip since they paid for part of the trip with a
nonrefundable deposit. Lauren argues that they should cancel the trip because the additional cost of
the trip outweighs the additional benefit of the trip and the nonrefundable deposit should not factor
into the decision-making process. Who is correct? Explain.
Wrne your response

4. suppose that pollution in a neighborhood comes from two factories, with marginal benefit curves given by mb1 = 12 – p1 and mb2 = 8 – p2. the level of pollution in the neighborhood is given by p = p1 + p2. the government wants to limit pollution by instituting a pollution-rights market. the government’s desired level of p is 10, so it prints 10 pollution rights and offers them for sale to the firms.a)find the equilibrium selling price of a pollution right, as well as the allocation of rights (and hence pollution levels) across the two factories. b)repeat part (a) for the case where the government’s desired level of pollution equals 14. c)comment on the usefulness of a pollution rights market in achieving efficient levels of pollution abatement.

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Calculate riverside’s financial ratios for 2014. assume that riverside had $1,000,000 in lease payments and $1,400,000 in debt principal repayments in 2014. (hint: use the book discussion to identify the applicable ratios.)