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Question: The demand (MB) for a good is given by P= 20-Q. The private marginal cost is given by PMC= 6+Q, and the marginal damage function is given by MD = 2+Q.
Note: the optimal tax is the difference in price between the private marginal cost and the social marginal cost at the socially optimal quantity, NOT at the private optimal quantity.
Find the social marginal cost curve.
Find the optimal tax rate that can induce producers to reduce output to social optimal level.
Calculate the gain (damage avoided), loss (loss of producer + consumer surplus caused by less output) and net gain (avoided DWL caused by pollution) of the tax.
you have been part of the orthopedic center for 5 years. in that time you have seen the center grow and the need for
A geometrically increasing series of 15 ends of year payments is deposited to fund an account. The first payment is $75,000 the geometric factor is 5%.
my neighborsare college students who sometimes have late-night parties. assume that the nuisance cost of these parties
A weekly business magazine offers a 1-year subscription for $58 and a 3-year subscription for $116. If you thought you would read the magazine for at least the.
Suppose the federal reserve adopts a policy of complete transparency; that is, suppose it announced beforehand how it will change the money supply. According to rational expectations theory, how will this policy affect the Fed's ability to move the r..
in 1931 pepsi was almost broke. the great depression hit it hard and coke had most of the duopoly market for soft
The 2014 Index of Economic Freedom tracks the level of economic freedom in 186 countries. Economic freedom means that individuals are free to work, produce, consume, and invest in any way they please
South West Electronics Corporation (SWEC) designs high-tech business and residential security systems. The company's marketing analyst has been assigned.
Under Packwood's proposal, what would the marginal tax rate be at $250,000 per year? At $500,000 per year? Packwood asked the Joint Committee this question.
In terms of communicating with patients of different cultures, what did the health professionals in the video clips do well? Provide examples of negative and positive impacts that apply to the case studies from the video.
Normal 0 false false false EN-US X-NONE X-NONE What are the assumptions we re..
a major new client has requested that your company present an investment seminar to illustrate the stock valuation
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