When the production of a good creates an external cost, in order for taxes to be effective in achieving the efficient allocation of resources, the tax must be set equal to the
A) marginal private cost.
B) marginal external cost.
C) marginal social cost.
D) marginal benefit of polluting.
B
Economics
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Suppose an increase in demand causes the price to increase from $2 to $4 and the quantity to increase from 1,000 to 1,800. Using the midpoint method, the elasticity of supply equals
A) 0.86. B) 1.17. C) 2.74. D) 0.68. E) None of the above answers is correct.
Economics
Give a few examples of incentive compensation.
What will be an ideal response?
Economics