This topic contains a solution. Click here to go to the answer
« previous next »

Author Question: What is the marginal product of labor? What will be an ideal ... (Read 65 times)

pane00

  • Hero Member
  • *****
  • Posts: 579
on: Jun 29, 2018
What is the marginal product of labor?
 
  What will be an ideal response?

Question 2

What are Pigouvian taxes and subsidies? How do governments decide when to levy a tax or provide a subsidy?
 
  What will be an ideal response?


Related Topics

Need homework help now?

Ask unlimited questions for free

Ask a Question
Marked as best answer by a Subject Expert

Anonymous

  • Sr. Member
  • ****
  • Posts: 317
Reply #1 on: Jun 29, 2018
Answer to Question 1

The marginal product of labor is the additional output produced by one additional unit of labor.

Answer to Question 2

Governments address externalities through Pigouvian taxes or subsidies, named after the economist Arthur Pigou. Taxes and subsidies are levied to ensure that firms internalize externalities. Consider a good with negative externalities. The marginal social cost of the good is greater than its marginal private cost. The government will levy a tax on the good, which is equal to the external cost of the good. This tax makes firms take into account the external damage from the good when it makes its production decisions. Similarly, for a good with positive externalities, the government provides a subsidy to a firm or consumer that is equal to the external benefits from the good. The Pigouvian subsidy raises the individual's marginal benefits of consumption by an amount equal to the external benefits its consumption causes, exactly aligning the individual's benefits with society's benefits.


pane00

  • Hero Member
  • *****
  • Posts: 579
Reply #2 on: Jun 29, 2018
Thank you


Anonymous

  • Sr. Member
  • ****
  • Posts: 317
Reply #3 on: Jun 29, 2018
No problemo


« previous next »
 

Did you know?

Children with strabismus (crossed eyes) can be treated. They are not able to outgrow this condition on their own, but with help, it can be more easily corrected at a younger age. It is important for infants to have eye examinations as early as possible in their development and then another at age 2 years.

Did you know?

The most common treatment options for addiction include psychotherapy, support groups, and individual counseling.

Did you know?

On average, the stomach produces 2 L of hydrochloric acid per day.

Did you know?

Though Candida and Aspergillus species are the most common fungal pathogens causing invasive fungal disease in the immunocompromised, infections due to previously uncommon hyaline and dematiaceous filamentous fungi are occurring more often today. Rare fungal infections, once accurately diagnosed, may require surgical debridement, immunotherapy, and newer antifungals used singly or in combination with older antifungals, on a case-by-case basis.

Did you know?

Cytomegalovirus affects nearly the same amount of newborns every year as Down syndrome.

Cultures Ideal Body Types Cultures Ideal Body Types
Patent medicines contained a name brand that clearly identified the product and claimed to cure just ... Patent medicines contained a name brand that clearly identified the product and claimed to cure just ...
Ginkgo Biloba label. The label indicates the product is standardized to percentages of the two ... Ginkgo Biloba label. The label indicates the product is standardized to percentages of the two ...
For the circuit in Figure 1, assume ideal diodes. The peak inverse voltage is approximately For the circuit in Figure 1, assume ideal diodes. The peak inverse voltage is approximately
GloFish, marketed as the world’s first GM pet, are a controversial product of genetic engineering GloFish, marketed as the world’s first GM pet, are a controversial product of genetic engineering
Three queens, fertile females in species that have a reproductive division of labor. Three queens, fertile females in species that have a reproductive division of labor.
Video: Genetic distance between human groups

For a complete list of videos, visit our video library