In the presence of external costs, like the cost of pollution, the marginal social cost =...
Fantastic news! We've Found the answer you've been seeking!
Question:
Transcribed Image Text:
In the presence of external costs, like the cost of pollution, the marginal social cost = marginal private cost + marginal external cost. The output produced by the unregulated competitive market is a. where marginal private cost = marginal benefit and, therefore, the output is efficient. b. where marginal social cost = marginal benefit and, therefore, the output is efficient.. c. inefficient, and a pigovian tax equal to the marginal external cost, would induce firms to produce the efficient output where marginal social cost = marginal benefit. d. inefficient, and a pigovian tax equal to the marginal social benefit, would induce firms to produce the efficient output where marginal social cost = marginal benefit. e. greater than the efficient output and, therefore, a tax would lead to even greater welfare losses. In the presence of external costs, like the cost of pollution, the marginal social cost = marginal private cost + marginal external cost. The output produced by the unregulated competitive market is a. where marginal private cost = marginal benefit and, therefore, the output is efficient. b. where marginal social cost = marginal benefit and, therefore, the output is efficient.. c. inefficient, and a pigovian tax equal to the marginal external cost, would induce firms to produce the efficient output where marginal social cost = marginal benefit. d. inefficient, and a pigovian tax equal to the marginal social benefit, would induce firms to produce the efficient output where marginal social cost = marginal benefit. e. greater than the efficient output and, therefore, a tax would lead to even greater welfare losses.
Expert Answer:
Related Book For
Posted Date:
Students also viewed these economics questions
-
In the presence of the enzyme aconitase, the double bond of aconitic acid undergoes hydration. The reaction is reversible, and the following equilibrium is established:
-
In the presence of light, chlorine can substitute for one (or more) of the hydrogens in an alkane. For the following reactions, draw the possible monochlorination products. hr 2,2-dimethylpropane Cl2...
-
In the presence of hidden action problems, under what conditions will a deferred compensation contract both minimize taxes and provide desirable work incentives for employees?
-
By a work sampling study: Observed Data The machine is being used Proportion of manual labour (machine is running and/or (servicing time) T-% machine is random serviced) Allowance Time Proportion of...
-
Grapes must be harvested by hand. Fixed proportions characterize this production functioneach worker must have one pair of stem clippers to produce any output. A skilled worker with clippers can...
-
The simulation (flipping coins or using the applet) done to develop the distribution we use to find our p-values assumes which hypothesis is true? A. Null hypothesis B. Alternative hypothesis C. Both...
-
How to organize litigation files for trial?
-
A 3.00-m-long, 240-N, uniform rod at the zoo is held in a horizontal position by two ropes at its ends (Fig. 11.30). The left rope makes an angle of 150° with the rod and the right rope makes an...
-
Alicia!" bellowed David to the company's HR specialist, "I've got a problem, and you've got to solve it. I can't get people in this plant to work together as a team. As if I don't have enough trouble...
-
Port Townsend Cedar Company acquired a saw for $34,000 with an expected useful life of 5 years and a $2,000 expected residual value. Prepare a tabular comparison (similar to Exhibit of the annual...
-
Maria worked through law school as a contract accountant. When she opened her law office, she interviewed Charles for her accounting clerk. Maria earns $100 per hour as a lawyer. Charles makes $35 an...
-
Some consulting work for a communications firm in Thailand. You will be paid B468,187 (Thai Baht) seven months from now when the work is done. To hedge against an unfavorable exchange rate when you...
-
D. Setting up Sales tax 1. Where do you go to setup sales tax? 2. Answer setup questions: a) Physical address of your company b) If you collect sales tax for states other than where you are located?...
-
2.1 The current Australian dollar exchange rate (Australian dollar per US dollar) is Et = 1.8; the annualized interest rate on three year bonds is 2% in Australia compared to a 1% annualized interest...
-
The factory overhead budget for the period includes all production-related costs other than direct labor and direct materials only indirect manufacturing costs that will be paid in cash total...
-
Match the following types of stores. Group of answer choices Dillard's , Kohl's , Nordstrom , Macy's , and Saks Department Stores Costco , Target , TJX , and Walmart Discount Department Stores...
-
Three milliliters of a 2.0 M solution of HCl are added to 1 liter of buffer solution containing 0.40 moles of the weak acid, propanoic acid (Ka = 1.4 x 10^-5) and 0.50 moles of its conjugate base,...
-
Consider a closed, rigid tank with a volume of 0.8L, filled with cold water initially at 27C. The tank is filled such that there are no voids (air pockets) within. The initial pressure within the...
-
An article in the Economist on evaluating health outcomes is subtitled "To Improve Health Care, Governments Need to Use the Right Data." Among the data not currently being collected in most...
-
Why is GDP an imperfect measure of economic wellbeing? What types of production does GDP not measure? If GDP included these types of production, would it still be an imperfect measure of economic...
-
UPS and FedEx both struggle to deliver the surge of packages they receive during the end-of-year holiday season. According to an article in the Wall Street Journal, in 2014, both firms considered...
-
Three brothers, Daniel, David and Derrick have been discussing their respective taxation affairs and how much they dislike paying tax. None of them are Scottish taxpayers. Daniel's income for tax...
-
Roseanne is a Scottish taxpayer. She starts trading on 1 July 2023 and prepares accounts for the 16 months to 31 October 2024. The adjusted trading profit for this period is 38,560. Her only other...
-
You are a trainee chartered certified accountant and your manager has asked you for your help with regard to a taxpayer who has made trading losses. Sean has been in self-employment since 2011, but...
Study smarter with the SolutionInn App