Calculate the socially efficient tax rate

Assignment Help Business Economics

Reference no: EM13816194

For an industry with MAC = 500-2E and MDC = 3E:

a. Calculate the socially efficient tax rate.

b. What is the total compliance cost to the industry if the socially efficient tax is charged?

c. What are the net social benefits of the socially efficient tax?

Reference no: EM13816194

Questions Cloud

How can employees benefit from alternative work arrangements : How can employees benefit from alternative work arrangements? How can employers benefit from alternative work arrangements?

Describe the source of the scale economy : Describe the source of the scale economy. How could the organization exploit the scale economy or diseconomy?

What is a stakeholder and why is such established : 1.What is a stakeholder, and why is such established? 2.With regard to gathering requirements, please specify what a requirement is in the context of planning for software development?

Why is a monopolistic competition said to be inefficient : GRAPH the long-run profit of a monopolistically competitive firm. Do Monopolistically competitive firms generate a long-run profit? Why is a monopolistic competition said to be inefficient?

Calculate the socially efficient tax rate : For an industry with MAC = 500-2E and MDC = 3E: Calculate the socially efficient tax rate. What is the total compliance cost to the industry if the socially efficient tax is charged? What are the net social benefits of the socially efficient tax?

Process of taking a license plate at department of motor v : Create a process chart/flow chart to map the process of taking a license plate at Department of Motor Vehicle. Here are the process details: You enter the office and take a number, then walk 50 feet to the waiting area. During the wait, you count add..

Current issues in the behavioral healthcare system : Current Issues in the Behavioral Healthcare System

Marginal damage and the marginal abatement cost : Suppose a chemical factory discharges waste products into a river resulting in significant damages to a local fishery. The marginal damage and the marginal abatement cost (MAC) are given by:

A cost-effective policy is always socially efficient : A cost-effective policy is always socially efficient. Enforcement costs are critical to the success of environmental programs and should be included in the overall social costs of the program when evaluating different policy options.

User Account

All Pages