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Suppose that there is a fixed sum of money available to be spent on public projects, and that a large number of public projects have been evaluated using social cost-benefit analysis. Assume that all projects are continuously variable in size. It follows that the budget should be allocated in a manner which ensures the marginal social benefit from the last dollar spent on each project should equal its marginal social cost.
Required:
Define Marginal Social Cost.
An Economy consists of two regions, the North & the South. The short-run elasticity of labor demand in every region is -0.5. Labor supply is perfectly inelastic within both regions
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Assignment about law of variable proportion
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