Suppose unregulated production of pesticides results in an ...

[Capo]

Suppose unregulated production of pesticides results in an equilibrium price and quantity of 400 and 1,000 tons per day, respectively, and a marginal external cost of 10 a ton.
 
  a) If the government were to eliminate the external cost by using taxes, what should the tax equal?
  b) Would the government action described above affect the quantity of pesticides produced? If yes, how? If no, why not?

Question 2

The WaveHouse on Mission Beach in San Diego features the Bruticus Maximus, a ten foot wave, which tests the skills of even the most talented surf and wake board riders on the planet.
 
  WaveHouse is the only place in San Diego where this service is offered. You can ride B. Max for 40 for the first hour, 33 for the second hour, and 26 for the third hour. Why would WaveHouse charge different prices for each subsequent hour of riding? A) to capture consumer surplus among groups of buyers
  B) to capture consumer surplus among units of a good
  C) to create customer loyalty
  D) to encourage skill development

[Swizqar]

A FREE account is required to view all solutions! Click to Register

Login with Facebook Login with Google Login with Email

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.

Answer Preview

Only 50% of students answer this correctly

[Capo]

Thanks for the timely response, appreciate it

[frankwu0507]

Wow, this really help