Elucidate how the proposed carbon tax for australia

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Q. A firm combines two resources, X and Y, to produce an output level Q in a purely competitive market. The cost of a unit of X is $15 and the cost of a unit of Y is $8. The marginal product of X is 30 units and the marginal product of Y is currently 24 units at output level Q. What would you recommend that the firm do given this resource combination?

Q. Using microeconomic theory, elucidate how the proposed carbon tax for australia would help reduce negative externalities, pollution levels in australia?

Reference no: EM1346111

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