c) Devise a quantity tax on product q for firm A in (a) such that the government can restore the social optimum in (b). d) Discuss other methods the government can use to restore the social optimum. Discuss advantages and disadvantages of the methods you propose. Explain.

c) Devise a quantity tax on product q for firm A in (a) such that the government can restore the social optimum in (b). d) Discuss other methods the government can use to restore the social optimum. Discuss advantages and disadvantages of the methods you propose. Explain.

Economics:

10th Edition

ISBN:9781285859460

Author:BOYES, William

Publisher:BOYES, William

Chapter27: Markets And Government

Section: Chapter Questions

Problem 5E

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Answer parts c and d please only if you are sure

c) Devise a quantity tax on product q for firm A in (a) such that the government can restore the social optimum in (b).

d) Discuss other methods the government can use to restore the social optimum. Discuss advantages and disadvantages of the methods you propose. Explain.

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