Suppose that the government decides to start regulating use of its forests, charging anyone who wants to

Question:

Suppose that the government decides to start regulating use of its forests, charging anyone who wants to log. Which of the following ways of calculating the price to charge for each acre will lead to an efficient quantity of logging?

a. The sum of the marginal social value of each acre to all logging companies.

b. The average price citizens say they would be willing to pay for an acre.

c. The external cost that logging an acre imposes on all citizens.

Fantastic news! We've Found the answer you've been seeking!

Step by Step Answer:

Related Book For book-img-for-question

Microeconomics

ISBN: 978-1259813337

2nd edition

Authors: Dean S. Karlan, Jonathan J. Morduch

See More Books

Question Posted: Oct 03, 2018 01:43 PM

See More Questions

Suppose that the government decides to guarantee an above-market price for a good by buying up any surplus at that above-market price. Using a conventional supply-demand diagram, illustrate the...
Here are the supply and demand equations for throstles, where p is the price in dollars: D (p) = 40 p S (p) = 10+p. On the axes below, draw the demand and supply curves for throstles, using blue...
Consider the market for beef discussed in this chapter. Suppose that the government decides to fight cholesterol by levying a tax of 50 cents per pound on sales of beef. Follow these steps to analyze...
On 28 April 2020, Mr Guna, CEO of Econ Engineering Malaysia, proposed to complete an abandoned boiler project that no one had dared to revive. He knew that the project was 60% complete before it was...
Crispy Fried Chicken bought equipment on January 2, 2018, for $33,000. The equipment was expected to remain in service for four years and to operate for 6,750 hours. At the end of the equipment's...
On January 1, you started a tutoring business called Brain Worx and charge $30 an hour for tutoring. The following are your transactions for 2017. a. On January 1, you purchased a computer from Apple...
The heights (in inches) and weights (in lbs) of 8 students in a secondary school are listed. Find the coefficient of variation for each of the two data sets. Then compare the results. Heights 62 58...
McGrath Co. on June 30, 2011, reported a retained earnings balance of $1,475,000 before closing the books. The books of the company showed the following account balances on June 30, 2011: Sales . . ....
Imagine a vendor responded to your request for a HRIS proposal. What are the indirect/direct costs and benefits of the HRIS? What is the cost of implementation (include dollar estimates)? Does the...
A gas station sells three types of energy drinks High Power, Purple Elephant, and Creature It earns $0.60, $0.76, and $0.99 in profit on each of the three drinks, respectively It can stock no more...
Determine whether each of the following policy interventions is designed to increase supply or decrease demand for a public good or common resource. a. A city government increases the frequency of...
Consider the following government-provided goods. Which of these goods necessarily require funding via general taxation (as opposed to direct user fees)? a. Street lights. b. A park. c. A fireworks...
Assuming general initial conditions, express the system model in a. Configuration form. b. Standard, second-order matrix form. \(\left\{\begin{array}{l}m \ddot{x}_{1}+k x_{1}-\frac{1}{2}...
For each equation in Problems 7-18, find three ordered pairs that satisfy the equation, and then use this information to graph each line. $x+2 y=4 $
CUCs use of top-side adjustments to overstate its earnings is an example of: (a) Improper timing of revenue recognition. (b) Recording of fictitious revenue. (c) Improper valuation of revenue. (d)...
The recording of sales when the customer has a right to return the product is a signal of the _________________ of sales.
Sunbeams cash flow from operations (CFFO) was negative, but at the same time the company was operating at a great profit, which signaled of inappropriately recorded _________________ .
According to the SECs AAER, which of the following was a method used by CUC to overstate its earnings? (a) Falsification of sales documents. (b) Side agreements with customers that were not recorded....
Solve the quadratic equations: (a) x 2 3x + 2 = 0. (b) x 2 1 = 0. (c) x 2 + 2x + 2 = 0.
Kims Konstructions has assembled the following data for a proposed straw-reinforced brick maker (SRBM): SRBM Cost: $26,000 Life: 5 years Revenue (p.a.) $11,000 Operating Expenses (p.a.) $3,000...
1. Income and Substitution Effects. Sabrina works for a workers cooperative that initially pays her a lump sum of $200 per week (as long as she works at least 15 hours per week) and a wage of $20 per...
1. Income and Substitution Effects. Sabrina works for a workers cooperative that initially pays her a lump sum of $200 per week (as long as she works at least 15 hours per week) and a wage of $20 per...
1. Income and Substitution Effects. Sabrina works for a workers cooperative that initially pays her a lump sum of $200 per week (as long as she works at least 15 hours per week) and a wage of $20 per...
The bank reconciliation for Widgets Inc. included the following items: $30 bank service charge; NSF check of $275; bank error of $30; EFT collection from a customer for $2,335. Based on the...
Simon Company's year-end balance sheets follow. At December 31 Assets Cash Accounts receivable, net Merchandise inventory Prepaid expenses Plant assets, net Total assets Liabilities and Equity...
A simply supported girder bridge is to support vehicular loads. It is anticipated that the worst load will come from a three-axle truck shown in Figure I below. Assuming the self-weight of the girder...

Suppose that the government decides to start regulating use of its forests, charging anyone who wants to

Question:

Step by Step Answer:

c The extern...View the full answer

Microeconomics

Students also viewed these Business questions