Production of a manufactured good

Assignment Help Business Economics

Reference no: EM131808343

Suppose the figure to the right represents the production of a manufactured good. Production of this good generates volatile organic? compounds, which are a type of air pollution. As a? result, the cost of production to society is greater than the private cost of production. The marginal private cost of production is represented by MC 1 and the marginal social cost is represented by MC 2 . Suppose the government decides to impose a Pigovian tax to bring about an efficient level of output. What size should the tax? be? The government should levy a tax of $nothing per ton produced? (Enter your response as a whole? number.)

Reference no: EM131808343

Questions Cloud

Inheritance is guaranteed money : Suppose Donald is expecting an inheritance that will pay him $85,000 at the end of each year for the next 40 years. Since his inheritance is guaranteed money

Relationship between coaching-management counseling : Explain in detail the relationship between coaching, management counseling, and discipline.

Potential gain from trade for the first unit : 1) The potential gain from trade for the first unit of the good they exchange is:

Managers and leaders effectively manage change : What specific tools, behaviors, routines can be used in order to help managers/leaders effectively manage change? Provide specific examples.

Production of a manufactured good : Suppose the figure to the right represents the production of a manufactured good. Production of this good generates volatile organic?

Descriptive statistics and distributions : What do we learn from the standard deviation statistic and How do the major constructs of the research cycle

Determining the survey of business intelligence analysts : A survey of 21 business intelligence analysts, who had been in their current positions from 10 to 20 years, revealed $90,734 as the average salary.

Increasing returns to scale at low levels of output : Suppose that a firm faces increasing returns to scale at low levels of output and constant returns to scale at high levels of output.

Low levels of output and constant returns : Suppose that a firm faces increasing returns to scale at low levels of output and constant returns to scale at high levels of output.

User Account

All Pages