Explain marginal social benefit curve, Microeconomics

1.  How does the marginal social benefit curve of a common resource compare to the marginal social benefit curve of positive externality from a mixed good? Highlight the differences through graphs.

2.  a. Suppose the demand for saline solution is perfectly inelastic for contact lens wearers. If the government imposes a tax on saline solution, what occurs? Be sure to tell what happens to the price paid by the buyers and discuss the incidence of the tax.

b. If income tax rates on labor income are decreased, what is the effect on the labor supply and the labor supply curve? What is the effect on the equilibrium quantity of labor hired?

 

 

Posted Date: 4/5/2013 5:57:53 AM | Location : United States







Related Discussions:- Explain marginal social benefit curve, Assignment Help, Ask Question on Explain marginal social benefit curve, Get Answer, Expert's Help, Explain marginal social benefit curve Discussions

Write discussion on Explain marginal social benefit curve
Your posts are moderated
Related Questions

Explain the difference between a stock and a flow.   A stock is something whose quantity is calculated at a point in time, whereas a flow measures the quantity of something ove

Differentiate between inflation and unemployment.  Inflation is an increase in the general price level that results in a decline in the purchasing power of money. In economics,

Explain the factors influencing the value of PED and yED. PED and YED should be explained and then dealt with in terms of determinants. PED is dependent on availability/closene

what is pooling equilibrium

Illustrate the income changes and consumption choice. Income Changes and Consumption Choice: This is of interest to see at how the consumer’s demand changes when we hold pri

How to calculate: fixed cost is $1,000,000 tvc $4,400,000, avc is $22, atc $27, worker productivity is 4. How do I calculate the profit or loss?

Features of monopolistic competition: Large number of firms in the industry. There are many small firms each supplying only a small share of the total market output. Hence, no

explain two theories of economic rent

Problem 1: a. Describe the concept of opportunity cost, using the production possibility curve. b. What are the fundamental problems of an economy? Describe how the command