« previous next »

Author Question: The figure above shows a tax imposed on a good with an external cost. The area of the rectangle abcd ... (Read 145 times)

bio_gurl

  • Hero Member
  • *****
  • Posts: 524
on: Jun 29, 2018
The figure above shows a tax imposed on a good with an external cost. The area of the rectangle abcd equals
 
  A) the MSB.
  B) the total tax revenue collected by the government.
  C) the amount of pollution tax per ton.
  D) the MC.
  E) the deadweight loss.

Question 2

An optimizing consumer has to choose between two goodsGood A priced at PA and Good B priced at PB.
 
  Given that MBA is the marginal benefit from consuming Good A and MBB is the marginal benefit from consuming Good B, the consumer's well-being will be maximized at the point where: A) MBA = MBB.
  B) MBA/PB=MBB/PA.
  C) MBA/PA = MBB/PB.
  D) MBA = MBB/PB.
Foundations of Microeconomics ¦ Bade, Parkin ¦ 8th Edition
Buy Test-Bank


mochi09

  • Sr. Member
  • ****
  • Posts: 335
Reply #1 on: Jun 29, 2018
Answer to Question 1

B

Answer to Question 2

C


Related Topics

Need homework help now?

Ask unlimited questions for free

Ask a Question
« previous next »
 

Did you know?

According to the American College of Allergy, Asthma & Immunology, more than 50 million Americans have some kind of food allergy. Food allergies affect between 4 and 6% of children, and 4% of adults, according to the CDC. The most common food allergies include shellfish, peanuts, walnuts, fish, eggs, milk, and soy.

Did you know?

Colchicine is a highly poisonous alkaloid originally extracted from a type of saffron plant that is used mainly to treat gout.

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?

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?

Computer programs are available that crosscheck a new drug's possible trade name with all other trade names currently available. These programs detect dangerous similarities between names and alert the manufacturer of the drug.

External oblique External oblique
Preoptic Area of the Rat Brain Preoptic Area of the Rat Brain
That politics was always a rough business is shown in this cartoon, which shows Lincoln, assisted by That politics was always a rough business is shown in this cartoon, which shows Lincoln, assisted by
Use an Automated External Defibrillator Use an Automated External Defibrillator
Apply compression and light effleurage techniques to the foot and ankle to warm the area. Apply compression and light effleurage techniques to the foot and ankle to warm the area.
How to find the volume and surface area a rectangular prism How to find the volume and surface area a rectangular prism
Video: Structures that affect circulation - kidneys and blood volume and skeletal muscle pumping

For a complete list of videos, visit our video library