Suppose a farmer is a price taker in soybeans with cost functions given by TC = .1q2 + 2q + 100 MC = .2q + 2 Suppose the farmer has to purchase a license for $50 per period in order to stay in business. In this case, its marginal cost function is

To eliminate the inefficiency resulting from pollution that creates an external cost, the government can impose a pollution tax on producers that is equal to the

A) MSB. B) MC. C) marginal external cost. D) MSC. E) price.

An expansionary monetary policy is most likely to increase real output

a. when the economy is operating at less than full-employment capacity. b. when the economy is at full employment. c. when actual output is beyond the economy's long-run capacity. d. when the inflationary side effects are fully anticipated by decision makers.