Suppose the market for dry cleaning has an inverse demand of p = 10 â€" 0.15q and an inverse supply curve (mc) of p = 0.05q, where p is the price per article of clothing and q is the quantity of clothing laundered. suppose the external marginal cost of dry cleaning is $1. if the government tries to correct the negative externality by placing a $1 tax on each laundered piece of clothing, buyers will pay and sellers will receive net of the tax.

Bandar industries berhad of malaysia manufactures sporting equipment. one of the company’s products, a football helmet for the north american market, requires a special plastic. during the quarter ending june 30, the company manufactured 35,000 helmets, using 22,500 kilograms of plastic. the plastic cost the company $171,000. according to the standard cost card, each helmet should require 0.6 kilograms of plastic, at a cost of $8 per kilogram. 1. what is the standard quantity of kilograms of plastic (sq) that is allowed to make 35,000 helmets? 2. what is the standard materials cost allowed (sq x sp) to make 35,000 helmets? 3. what is the materials spending variance? 4. what is the materials price variance and the materials quantity variance?