solve for the SMC, the efficient level of output and the Pigouvian tax the government would need to impose to correct for this market failure. (may not solve for whole numbers) PMC 105+10Q PMB 150-5Q MD 2Q
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Using the information below, solve for the SMC, the efficient level of output and the Pigouvian tax the government would need to impose to correct for this market failure. (may not solve for whole numbers)
PMC |
105+10Q |
PMB |
150-5Q |
MD |
2Q |
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- A firm has a division that produces chemical Y, whose average total costs are ATC = 50 + 2Q (where Q is the quantity of Y), and a marketing division that adds its own average total costs of ATC = 20 + 3Q. There is no external market price of Y. What should be the transfer price?About 35,000 general aviation multiengine airplanes are licensed to operate in the United States. If an additional $1,000-per-year tax was levied on each plane to raise general revenue, economic thinking suggests the A) annual revenue from this tax would be less than $35,000,000.B) number of airplanes would increase dramatically.C) annual revenue from this tax would be more than $35,000,000.D) annual revenue from this tax would be $35,000,000.A chemical company can produce Q units of a chemical H, with marginal costs of MC = 9 + Q, and can distribute the chemical at marketing marginal costs of MC = 1. The demand for H is given by P = 30 - 1.5Q. If an external market exists where H can be bought or sold without marketing expenses for $13, how much H should the firm produce? 4 units 10 units 7 units 5 units 0 units