User Account

All Pages

What size should the tax be

Assignment Help Microeconomics
Reference no: EM132154268

Question: 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: EM132154268

Questions Cloud

Classical economists preferred : Classical economists preferred perfect competition to monopoly because it fulfilled all but which one of the following basic goals?
Calculate a value for the quota rent : Suppose instead of the quota described in Part E that this country negotiates a voluntary export restraint of 12 units with its chief foreign supplier.
What is the total cost to garage for purchsing item annually : Holding cost is 10% of the purchase price per unit per year. What is the total cost (TC) to the garage for purchsing this item annually (2 decimal places)?
Should donald take the money now or take the annuity : 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.
What size should the tax be : Suppose the figure to the right represents the production of a manufactured good. Production of this good generates volatile organic compounds.
Herzberg two-factor approach to motivation : Explain the key differences in the two major factors in Herzberg's Two-Factor Approach to Motivation: Hygiene factors and Motivators.
Decided to weight three factors in making the decision : A company is looking to build a new factory. The company has decided to weight three factors in making the decision:
Important part of such a contract : Also seen with these contracts was a pre-determined mandatory retirement date; why would this be an important part of such a contract?
Assess the proposal to hire interns : As the economic consultant, how would you assess the proposal to hire interns?

Reviews

Write a Review

Microeconomics Questions & Answers

  The free rider problem

Question: Explain why the free rider problem makes it difficult for perfectly competitive markets to provide the Pareto efficient level of a public good.

  Failure of the super committee is good thing for economy

Some commentators have argued that the failure of the “Super committee” is good thing for the economy?  Do you agree?

  Case study analysis about optimum resource allocation

Case study analysis about optimum resource allocation: -  Why might you suspect (even without evidence) that the economy might not be able to produce all the schools and clinics the Ministers want? What constraints are there on an economy's productio..

  Fixed cost and vairiable cost

Questions:  :   Which of the following are likely to be fixed costs and which variable costs for a chocolate factory over the course of a month?  Explain your choice.

  Problem - total cost, average cost, marginal cost

Problem - Total Cost, Average Cost, Marginal Cost: -  Complete the following table of costs for a firm.  (Note: enter the figures in the  MC   column  between  outputs of  0 and 1, 1 and 2, 2 and 3, etc.)

  Oligopoly and demand curve problem

Problem based on Oligopoly and demand curve,  Draw and explain the demand curve facing each firm, and given this demand curve, does this mean that firms in the jeans industry do or do not compete against one another?

  Impact of external costs on resource allocation

Explain the impact of external costs and external benefits on resource allocation;  Why are public goods not produced in sufficient quantities by private markets?  Which of the following are examples of public goods (or services)? Delete the incorrec..

  Shifts in demand and movements along the demand curve

Describe the differences between shifts in demand and movements along the demand curve. What are the main factors which can shift the demand curve? Explain why they cause the demand curve to shift. Use examples and draw graphs to support your discuss..

  Article review question

Article Review Question: Read the following excerpts from the article "Fruit, veg costs surge' by Todd, Dagwell, published in the Herald on January 25th 2011 and answer questions below:

  Long-term growth, international trade & globalization

Long-term Growth, International Trade & Globalization:- This question deals with concepts such as long-term growth, international trade and globalization. Questions related to trade deficit, trade surplus, gains from trade, an international trade sce..

  European monetary union (emu) in crisis

"Does the economic bailout of Spain and Greece spell the beginning of the end for the European Monetary Union (EMU)?"

  Development game “settlers of catan”

Read the rules of the game, the overview and the almanac for the Development Game "Settlers of Catan"

Free Assignment Quote

Assured A++ Grade

Get guaranteed satisfaction & time on delivery in every assignment order you paid with us! We ensure premium quality solution document along with free turntin report!

Submit Assignment

Academics

Major Subjects

Majors

Get In Touch

whatsapp: +1-415-670-9521

Phone: +1-415-670-9521

Email: [email protected]

TERMS & POLICIES

HELP & SUPPORT

All rights reserved! Copyrights ©2019-2020 ExpertsMind IT Educational Pvt Ltd