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Question: The demand (MB) for a good is given by P= 20-Q. The private marginal cost is given by PMC= 6+Q, and the marginal damage function is given by MD = 2+Q.
Note: the optimal tax is the difference in price between the private marginal cost and the social marginal cost at the socially optimal quantity, NOT at the private optimal quantity.
Find the social marginal cost curve.
Find the optimal tax rate that can induce producers to reduce output to social optimal level.
Calculate the gain (damage avoided), loss (loss of producer + consumer surplus caused by less output) and net gain (avoided DWL caused by pollution) of the tax.
When looking at a tariff and a quota, you will find that these are classified as protectionist policies. Which one do you think the US must consider given the higher trade deficit?
An earthquake: Consider a Solow economy that begins in steady state. Then a strong earthquake destroys half the capital stock.
Draw a diagram showing how capital evolves from period to period (i.e. a diagram with kt on the horizontal axis and kt+1 on the vertical axis.)
Give confirm or a method of reasoning to help your view as to which showcase compose you believe is generally alluring.
What effect would the loss of ATP production have on the cells ability to transport substances across its membrane?
MBAA 523- Define the short-run and long-run and provide an aviation example. Define economies of scale. Is there evidence of economies of scale in the airline industry?
1. Consider two individuals, Fred and Barney. In one hour, Fred can produce either 15 gallons of beer, or 3 gallons of wine. In one hour, Barney can produce 2 gallons of beer or 4 gallons of wine. Assume both goods can be produced in continuous quant..
4-1 Summarize the general patterns of immigration to the United States. 4-2 Characterize how immigration was controlled in the nineteenth century.
Suppose the price elasticity of machinery exports in international markets is 2/3, and the dollar is overvalued by 30%, so those exports drop 20%.
What are the two accounts of an economic system and List all the components on both sides as they appear in the text - Compute the total GDP
As a recent college graduate you are ready for the same thing every recent graduate is ready for-a new car! You know this is a big decision.
1 tell how they combine to insure that in the long run a firm in a perfectly compitive industry make zero profit and is
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