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 71 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?

When blood is deoxygenated and flowing back to the heart through the veins, it is dark reddish-blue in color. Blood in the arteries that is oxygenated and flowing out to the body is bright red. Whereas arterial blood comes out in spurts, venous blood flows.

Did you know?

The use of salicylates dates back 2,500 years to Hippocrates’s recommendation of willow bark (from which a salicylate is derived) as an aid to the pains of childbirth. However, overdosage of salicylates can harm body fluids, electrolytes, the CNS, the GI tract, the ears, the lungs, the blood, the liver, and the kidneys and cause coma or death.

Did you know?

Pope Sylvester II tried to introduce Arabic numbers into Europe between the years 999 and 1003, but their use did not catch on for a few more centuries, and Roman numerals continued to be the primary number system.

Did you know?

In 2010, opiate painkllers, such as morphine, OxyContin®, and Vicodin®, were tied to almost 60% of drug overdose deaths.

Did you know?

Though “Krazy Glue” or “Super Glue” has the ability to seal small wounds, it is not recommended for this purpose since it contains many substances that should not enter the body through the skin, and may be harmful.

A graphical representation of the marginal value theorem. A graphical representation of the marginal value theorem.
Child Labor Rates and GDP Worldwide Child Labor Rates and GDP Worldwide
Cultures Ideal Body Types Cultures Ideal Body Types
The Number of Children Americans Think Are Ideal The Number of Children Americans Think Are Ideal
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 ...
North Korea: Labor Issues North Korea: Labor Issues
Video: Bone cells and tissues - tissue composition and cells

For a complete list of videos, visit our video library