Question
Assume that the willingness to pay for a certain shirt is 125 and that the production of this shirt causes marginal costs in the amount
Assume that the willingness to pay for a certain shirt is 125 and that the production of this shirt causes marginal costs in the amount of 30. In addition, a tax of 20 is levied on the buyer of this shirt.
By how much does the purchase, or sale, of this shirt increase aggregate welfare?
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International Economics
Authors: Dominick Salvatore
12th edition
9781118955727, 1118955765, 1118955722, 978-1118955765
