Answer:
$10
Explanation:
We are to account for external costs in production, since we are asked to find optimal tax.
Given:
We now have:
A represents number of aluminum units produced, let's find A, since the margnal cost is $30.
Thus,
Let's equate the private marginal cost with the marginal revenue of each unit in order to achieve this amount of produced units with tax, t.
We have:
Substituting 100 for A above, we have:
30 - t = 20
t = 30 - 20
t = 10
Therefore, the socially optimal tax on aluminum is $10 per unit
Answer:
D. direct (or positive) and is called the law of supply.
Explanation:
According to the law of supply, when the price of product is increases, then the quantity supplied of that product would also increases and if the price of product is decreases, then the quantity supplied of that product would also decreases. That means it shows a direct or positive relationship between the price and the quantity supplied keeping other factor constant i.e they do not changed.
Answer:
A. have permission from the government.
B. face a downward-sloping demand curve.
C. set price equal to marginal cost.
D. be sure the price-marginal cost ratio is the same for all its submarkets.
Explanation:
What are the choices?????????
Answer:
a. both the money supply increase and the investment tax credit
Explanation:
When the Central Bank of Wiknam increases the money supply, it is known as expansionary monetary policy.
When the Parliament of Wiknam passes a new investment tax credit, it is known as expansionary fiscal policy.
A shift in the aggregate demand curve to the right is when aggreagrate demand increases.
When money supply is increased, disposable income increases, consumption increases and aggregate demand increases.
Investment tax credit reduces the amount paid as tax and therefore increases disposable income, consumption increases and aggregate demand increases.
I hope my answer helps you.
