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

Author Question: Suppose that recycling rubber for sneakers creates an external benefit of 2.00 per ton of rubber. ... (Read 54 times)

tuffie

  • Hero Member
  • *****
  • Posts: 534
on: Jun 29, 2018
Suppose that recycling rubber for sneakers creates an external benefit of 2.00 per ton of rubber. There are no external costs. The efficient amount of rubber will be recycled when the government creates a
 
  A) subsidy of more than 2.00 per ton of rubber.
  B) subsidy of 2.00 per ton of rubber.
  C) tax of more than 2.00 per ton of rubber.
  D) tax of 2.00 per ton of rubber.

Question 2

A worker has a marginal product of 15 units a day, each of which can be sold for 10. Is it profitable to hire this worker if the wage rate is 100 a day? Briefly explain your answer.
 
  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

ricroger

  • Sr. Member
  • ****
  • Posts: 352
Reply #1 on: Jun 29, 2018
Answer to Question 1

B

Answer to Question 2

It is profitable to hire this worker because the worker's value of marginal product is 150 a day (the price, 10, times the marginal product, 15 units), which exceeds the wage rate of 100 a day. The worker creates 150 more revenue for the firm at a cost of only 100. Hence it is profitable to hire this worker.


tuffie

  • Member
  • Posts: 534
Reply 2 on: Jun 29, 2018
YES! Correct, THANKS for helping me on my review

pangili4

  • Member
  • Posts: 346
Reply 3 on: Yesterday
Excellent

« previous next »
 

Did you know?

There are 60,000 miles of blood vessels in every adult human.

Did you know?

If you use artificial sweeteners, such as cyclamates, your eyes may be more sensitive to light. Other factors that will make your eyes more sensitive to light include use of antibiotics, oral contraceptives, hypertension medications, diuretics, and antidiabetic medications.

Did you know?

Hip fractures are the most serious consequences of osteoporosis. The incidence of hip fractures increases with each decade among patients in their 60s to patients in their 90s for both women and men of all populations. Men and women older than 80 years of age show the highest incidence of hip fractures.

Did you know?

Drugs are in development that may cure asthma and hay fever once and for all. They target leukotrienes, which are known to cause tightening of the air passages in the lungs and increase mucus productions in nasal passages.

Did you know?

The training of an anesthesiologist typically requires four years of college, 4 years of medical school, 1 year of internship, and 3 years of residency.

Beijing introduces recycling banks that pay subway credits for bottles Beijing introduces recycling banks that pay subway credits for bottles
The internal and external anatomy of the kidney. The internal and external anatomy of the kidney.
Use rubber gloves (latex or nonlatex) to cover hands as needed to protect against contamination in ... Use rubber gloves (latex or nonlatex) to cover hands as needed to protect against contamination in ...
An infant begins to notice the external environment by the age of 4 to 8 months An infant begins to notice the external environment by the age of 4 to 8 months
Let A ⊆ R and p ∈ A. Suppose A\{p}6= ∅. Prove that p is an isolated point of A if and ... Let A ⊆ R and p ∈ A. Suppose A\{p}6= ∅. Prove that p is an isolated point of A if and ...
Suppose a country imports televisions. The country's supply and demand curves are shown in ... Suppose a country imports televisions. The country's supply and demand curves are shown in ...
Video: Types of energy transfer reactions: oxidation-reduction reactions and ATP generation reactions

For a complete list of videos, visit our video library