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 46 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?

Hypertension is a silent killer because it is deadly and has no significant early symptoms. The danger from hypertension is the extra load on the heart, which can lead to hypertensive heart disease and kidney damage. This occurs without any major symptoms until the high blood pressure becomes extreme. Regular blood pressure checks are an important method of catching hypertension before it can kill you.

Did you know?

In ancient Rome, many of the richer people in the population had lead-induced gout. The reason for this is unclear. Lead poisoning has also been linked to madness.

Did you know?

Eating carrots will improve your eyesight. Carrots are high in vitamin A (retinol), which is essential for good vision. It can also be found in milk, cheese, egg yolks, and liver.

Did you know?

The people with the highest levels of LDL are Mexican American males and non-Hispanic black females.

Did you know?

To prove that stomach ulcers were caused by bacteria and not by stress, a researcher consumed an entire laboratory beaker full of bacterial culture. After this, he did indeed develop stomach ulcers, and won the Nobel Prize for his discovery.

North Korea: Labor Issues North Korea: Labor Issues
The direct product of phosphate hydrolysis from PEP is the enol form of pyruvate The direct product of phosphate hydrolysis from PEP is the enol form of pyruvate
the transamination product of tryptophan is decarboxylated to yield indole-3-acetic acid, or auxin the transamination product of tryptophan is decarboxylated to yield indole-3-acetic acid, or auxin
A close relationship between greenhouse gas emissions and a country’s gross domestic product A close relationship between greenhouse gas emissions and a country’s gross domestic product
Overallocation of Labor to Farming When Farmworkers Are Paid Their Average Product Overallocation of Labor to Farming When Farmworkers Are Paid Their Average Product
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
Video: Aneurysm

For a complete list of videos, visit our video library