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The government thinks that writing with lead pencils is dangerous. As a result, they enforce a $25 tax on every pencil sold. This tax is to account for the external cost o writing with pencils. Before this tax was introduced a pack of premium pencils sold for $190 and now they sell for $205.
A) Because of the tax the number of pencils sold will increase, decrease, or neither?
B) What is the socially optimal price of the pencils?
C) What is the private market price?
D) How much does a firm selling these premium pencils receive after it pays the tax?
A change in the meeting time of the introductory one’s decision to go swimming economics course from 11:00 A.M. to 7:30 A.M. on one’s decision to attend the lectures
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An experiment was performed in a manufacturing plant by making 5 batches of a chemical using the stan- dard method (A) and 5 batches using a new method (B). The yields, expressed as a percent of a theoretical maximum, were as follows: Find a 99% c..
Prepare a 2-3 page paper using APA format discussing the Milton Friedman Goal of the Firm - Does this goal still apply to our understanding of the role of the business firm in society? Provide examples to support your understanding.
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According to Coase's theory of the firm, why do firms exist? How do firms contribute to the efficiency of the market economy in ways that networks.
which of the following have traditionally been considered natural monopolies?a. public universitiesb. public golf
We said that "an effective peg requires a very serious commitment to a high level of monetary and fiscal stability." As in our discussion of monetary policy.
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