6. Markets fail when allocative efficiency is not achieved; when a factory emits toxic smoke, a...
6. Markets fail when allocative efficiency is not achieved; when a factory emits toxic smoke, a negative externality is created. Why do economists justify a tax to penalize the factory in this case? (10 marks
Homework Answers
Answer : For negative externality the quantity level is higher than the socially optimal quantity level. In this situation if the government impose tax on production then the production cost will increase for the factory. As a result, the factory will reduce the production level. Due to this reason the output level will decrease and start reaching toward the optimal output level. Hence "economists justify a tax to penalize the factory in case of negative externality".
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6. Markets fail when allocative efficiency is not achieved; when
a factory emits toxic smoke, a...
6. Markets fail when allocative efficiency is not achieved; when a factory emits toxic smoke, a...
6. Markets fail when allocative efficiency is not achieved; when a factory emits toxic smoke, a negative externality is created. Why do economists justify a tax to penalize the factory in this case? (10 marks)
6. Markets fail when allocative efficiency is not achieved; when a factory emits toxic smoke, a...
6. Markets fail when allocative efficiency is not achieved; when a factory emits toxic smoke, a negative externality is created. Why do economists justify a tax to penalize the factory in this case? (10 marks)
market fail when allocative efficiency is not achirved; when a factory emits toxic smoke, a negative...
market fail when allocative efficiency is not achirved; when a factory emits toxic smoke, a negative externality is created. why do economists justify a tax to penalize the factory in this case?
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6. Markets fail when allocative efficiency is not achieved; when a factory emits toxic smoke, a negative externality is created. Why do economists justify a tax to penalize the factory in this case? (10 marks)
6. Markets fail when allocative efficiency is not achieved; when a factory emits toxic smoke, a negative externality is created. Why do economists justify a tax to penalize the factory in this case? (10 marks)
45. A negative externality or spillover cost occurs when A) firms fail to achieve productive efficiency B) firms fail to achieve allocative efficiency the price of a good exceeds the marginal cost of producing it. the total cost of producing a good exceeds the costs borne by the producer. 46. s, Quantity Quantity Refer to the diagrams for two separate product markets. Assume that society's optimal level of output in each market is Qo and that government purposely shifts the...
1. Why is growing the number of users such an important metric
for social media companies? How does Metcalfe’s Law relate to the
profitability of social media companies?
2. Most social media companies rely on ad revenue as their
main source of income. What are other ways that LinkedIn generates
income? Why is it important for a company to have multiple ways of
generating income?
3.Why do recruiters and job seekers like LinkedIn? Explain why
an employer may dislike LinkedIn....
CASE 20 Enron: Not Accounting for the Future* INTRODUCTION Once upon a time, there was a gleaming office tower in Houston, Texas. In front of that gleaming tower was a giant "E" slowly revolving, flashing in the hot Texas sun. But in 2001, the Enron Corporation, which once ranked among the top Fortune 500 companies, would collapse under a mountain of debt that had been concealed through a complex scheme of off-balance-sheet partnerships. Forced to declare bankruptcy, the energy firm...
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