The private marginal benefit associated with a products consumption is PMB = 350 4Q and the
Question:
The private marginal benefit associated with a product’s consumption is PMB = 350 − 4Q and the private marginal cost associated with its production is PMC = 6Q. Furthermore, the marginal external damage associated with this good’s production is MD = 4Q. To correct the externality, the government decides to impose a tax of T per unit sold. What tax T should it set to achieve the social optimum?
Fantastic news! We've Found the answer you've been seeking!
Step by Step Answer:
To achieve the social optimum and correct the externality associated with the production of the ...View the full answer
Answered By
Gabriela Rosalía Castro
I have worked with very different types of students, from little kids to bussines men and women. I have thaught at universities, schools, but mostly in private sessions for specialized purpuses. Sometimes I tutored kids that needed help with their classes at school, some others were high school or college students that needed to prepare for an exam to study abroud. Currently I'm teaching bussiness English for people in bussiness positions that want to improve their skills, and preparing and ex-student to pass a standarized test to study in the UK.
1+ Reviews
10+ Question Solved
Related Book For 
Question Posted:
