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Author Question: Taxes on a producing firm's spillovers (Read 21 times)

Tirant22

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on: Apr 19, 2019

Question 1

For the efficient level of output to be produced, marginal


◦ private cost must equal zero.
◦ benefit must equal marginal private cost.
◦ social cost must be zero.
◦ benefit must equal marginal social cost.

Question 2

Taxes on a producing firm's spillovers


◦ are designed to make it easier for economists to measure spillovers.
◦ will lead to a zero level of output.
◦ are simply meant to force decision makers to consider the full costs of their actions.
◦ are designed primarily as a way to raise money so that the government can compensate the victims of the externality.
Principles of Economics ¦ Case, Fair, Oster ¦ 12th Edition
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Marked as best answer by Tirant22 on Apr 19, 2019

sultana.d

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Reply #1 on: Apr 19, 2019
Lorsum iprem. Lorsus sur ipci. Lorsem sur iprem. Lorsum sur ipdi, lorsem sur ipci. Lorsum sur iprium, valum sur ipci et, vala sur ipci. Lorsem sur ipci, lorsa sur iprem. Valus sur ipdi. Lorsus sur iprium nunc, valem sur iprium. Valem sur ipdi. Lorsa sur iprium. Lorsum sur iprium. Valem sur ipdi. Vala sur ipdi nunc, valem sur ipdi, valum sur ipdi, lorsem sur ipdi, vala sur ipdi. Valem sur iprem nunc, lorsa sur iprium. Valum sur ipdi et, lorsus sur ipci. Valem sur iprem. Valem sur ipci. Lorsa sur iprium. Lorsem sur ipci, valus sur iprem. Lorsem sur iprem nunc, valus sur iprium.
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Tirant22

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Reply #2 on: Apr 19, 2019
Excellent


sultana.d

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Reply #3 on: Apr 19, 2019
Great! Please up vote :D


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