What are the optimal tax rates

Reference no: EM13680653

The demand for a pack of 12 golf balls in Albuquerque is P=1000-.1Q, with supply P=30. The demand for golf clubs is 500-.2Q with supply P=75. The city government wishes to impose per-unit taxes on these goods in order to raise $100,000 in revenue to pay for improvements to the water supply system connected to the local golf courses. The government wishes to do this by minimizing overall inefficiencies resulting from the taxes. What are the optimal tax rates that the government should impose on each good?

Reference no: EM13680653

Questions Cloud

Is there efficiency in production : Is there efficiency in production?

Find total electrical potential energy for this arrangement : Three identical +1.00 μC charges are on the vertices of an equilateral triangle. Each side measures 0.500 meter. Find the total electrical potential energy for this arrangement of charges

Compute how long after particle is released has it travelled : A particle with charge -3.74 x 10-6 coulombs is released at rest in a region of constant, uniform electric field. Compute how long after the particle is released has it travelled through a potential difference of 0.351 volts

First bank has total deposits : First Bank has total deposits

What are the optimal tax rates : What are the optimal tax rates that the government should impose on each good?

The marginal savings from emissions : Assume the marginal savings from emissions for an industry are given by MS

Why is the banking system in the united states : Why is the banking system in the United States referred to as a fractional reserve bank system? What is the role of deposit insurance in a fractional reserve system?

Obtain what is the maximum current : A 4700 μF capacitor is charged with 9 Volt and then connected across a 1.5 H inductor. Evaluate what is the maximum current

Compute the potential at given point : Pictured is a thin non-conducting disk of radius R = 7.32 centimeter containing an overall charge Q = -50.0 mC, Compute the potential V at point P placed a distance d = 6.65 centimeter from the disk

User Account

All Pages