Credit Default Swap

The government's role in limiting smoking in many buildings is justified by considerations of

A. Market power. B. Government failure. C. Externalities. D. Inequity.

Identify the Marginal External Benefit (MEB) function, and briefly explain what this function is measuring.

Suppose you are a public official responsible for setting a retail disposal charge on antifreeze. Estimated marginal benefit and cost functions for antifreeze are as follows: MPB = 10.0 – 0.5Q MPC = MSC = 1.0 + 0.4Q MSB = 10.0 –1.1Q, whereMPB, MSB, and MPC are measured in dollars per gallon, and Q is in millions of gallons.