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 122 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

robbielu01

  • Member
  • Posts: 336
Reply 3 on: Yesterday
Wow, this really help

« previous next »
 

Did you know?

One way to reduce acid reflux is to lose two or three pounds. Most people lose weight in the belly area first when they increase exercise, meaning that heartburn can be reduced quickly by this method.

Did you know?

Bacteria have been found alive in a lake buried one half mile under ice in Antarctica.

Did you know?

Not getting enough sleep can greatly weaken the immune system. Lack of sleep makes you more likely to catch a cold, or more difficult to fight off an infection.

Did you know?

In 1864, the first barbiturate (barbituric acid) was synthesized.

Did you know?

Over time, chronic hepatitis B virus and hepatitis C virus infections can progress to advanced liver disease, liver failure, and hepatocellular carcinoma. Unlike other forms, more than 80% of hepatitis C infections become chronic and lead to liver disease. When combined with hepatitis B, hepatitis C now accounts for 75% percent of all cases of liver disease around the world. Liver failure caused by hepatitis C is now leading cause of liver transplants in the United States.

Crossing over creates heteroduplex DNA Crossing over creates heteroduplex DNA
External and internal male genitalia. External and internal male genitalia.
Example of the Index to External Causes. Example of the Index to External Causes.
Pour the injection system cleaning fluid into the open canister. Rubber gloves are highly ... Pour the injection system cleaning fluid into the open canister. Rubber gloves are highly ...
Use a rubber or padded barrier to save wear and tear on the tabletop. Use a rubber or padded barrier to save wear and tear on the tabletop.
EXTERNAL ANATOMY OF CHICKENS EXTERNAL ANATOMY OF CHICKENS
Video: Neural regulation of blood pressure - baroreceptor and chemoreceptor reflexes

For a complete list of videos, visit our video library