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

Author Question: Return to the market for cigarettes from the previous question. What per-unit tax could the ... (Read 34 times)

Beheh

  • Hero Member
  • *****
  • Posts: 520
on: Jul 1, 2018
Return to the market for cigarettes from the previous question. What per-unit tax could the government levy to eliminate the deadweight loss from the behavioral bias?
 a. 0
  b. 1
  c. 50
  d. 100

Question 2

Return to the case of Jan, the hyperbolic discounter from the previous question. Suppose she can sign a contract that requires her to give up money equivalent to a loss of X utils if she does not undertake the action. Assume she does not behave consistent with her plans without this contract. How high would the contractual value of X have to be to prevent her inconsistency?
 a. C  B/2.
  b. B.
  c. C.
  d. B + C.


Related Topics

Need homework help now?

Ask unlimited questions for free

Ask a Question
Marked as best answer by a Subject Expert

kiamars2010

  • Sr. Member
  • ****
  • Posts: 341
Reply #1 on: Jul 1, 2018
Answer to Question 1

c

Answer to Question 2

a


Beheh

  • Member
  • Posts: 520
Reply 2 on: Jul 1, 2018
Excellent

cici

  • Member
  • Posts: 325
Reply 3 on: Yesterday
:D TYSM

« previous next »
 

Did you know?

The strongest synthetic topical retinoid drug available, tazarotene, is used to treat sun-damaged skin, acne, and psoriasis.

Did you know?

Fewer than 10% of babies are born on their exact due dates, 50% are born within 1 week of the due date, and 90% are born within 2 weeks of the date.

Did you know?

IgA antibodies protect body surfaces exposed to outside foreign substances. IgG antibodies are found in all body fluids. IgM antibodies are the first type of antibody made in response to an infection. IgE antibody levels are often high in people with allergies. IgD antibodies are found in tissues lining the abdomen and chest.

Did you know?

When taking monoamine oxidase inhibitors, people should avoid a variety of foods, which include alcoholic beverages, bean curd, broad (fava) bean pods, cheese, fish, ginseng, protein extracts, meat, sauerkraut, shrimp paste, soups, and yeast.

Did you know?

Autoimmune diseases occur when the immune system destroys its own healthy tissues. When this occurs, white blood cells cannot distinguish between pathogens and normal cells.

How to manually solve a linear system with three variables without matrices (Question 1 of 2) How to manually solve a linear system with three variables without matrices (Question 1 of 2)
How to plot a cosine function containing an amplitude and phase-shift (Question 2 of 2) How to plot a cosine function containing an amplitude and phase-shift (Question 2 of 2)
How to solve word problems with two unknowns (Question 1) How to solve word problems with two unknowns (Question 1)
Slope Question Slope Question
Economics question Economics question
economic question economic question
Video: Epidural Hematoma

For a complete list of videos, visit our video library