Business, 11.02.2020 18:00 jhausenfleck541
A firm that produces chemical solvents creates some air pollution because of the emissions from its manufacturing facilities. A tax is imposed on the firm, equal to the costs of environmental damage caused by a unit of the emissions. What is the result?
Demand for the chemical solvents will decrease.
Consumers of the chemical solvents will be willing to pay the full amount of the tax, and so the quantity produced will be unaffected.
Demand for the chemical solvents will increase.
The quantity of chemical solvents produced now will be the efficient amount.
Answers: 2
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In each of the following cases, find the unknown variable. ignore taxes. (do not round intermediate calculations and round your answers to the nearest whole number, e.g., 32.) accounting unit price unit variable cost fixed costs depreciation break-even 20,500 $ 44 $ 24 $ 275,000 $ 133,500 44 4,400,000 940,000 8,000 75 320,000 80,000
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Define the marginal rate of substitution between two goods (x and y). if a consumer’s preferences are given by u(x,y) = x3/4y1/4, compute the consumer’s marginal rate of substitution as a function of x and y. calculate the mrs if the consumer has chosen to consumer 48 units of x and 16 units of y. show your work. (use the back of the page if necessary.
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A firm that produces chemical solvents creates some air pollution because of the emissions from its...
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