When a tax distorts incentives to buyers and sellers so that fewer goods are produced and sold, the tax has caused a deadweight loss.
<h3>What is meant by deadweight loss?</h3>
- The gap between the production and consumption of any given good or service, including taxes, is referred to as deadweight loss in economics. Deadweight loss is most frequently detected when the quantity generated compared to the quantity consumed deviates from the ideal surplus concentration.
- Overproduction of commodities results in a loss of money. For instance, a baker might only sell 80 of the 100 loaves of bread they produce. There will be a deadweight loss since the 20 remaining loaves will become moldy and dry, and they will need to be thrown away.
- The loss in economic activity that results when the market pricing of products or services change negatively affects consumers and businesses is referred to as deadweight loss.
- You need to know the change in price and the change in quantity demanded in order to compute deadweight loss. Deadweight Loss is calculated using the following formula:. 5 * (P2 - P1) * (Q1 - Q2).
When a tax distorts incentives to buyers and sellers so that fewer goods are produced and sold, the tax has caused a deadweight loss.
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Hi there,
I can not find the complete question to help choose an option. I wil list out a variety of answers and you would be able to choose any that suits your question.
Answer/Explanation:
As an high school leaver that wants to further his education but that doesn't want to take student loans to do it, there are a variety of option such high school leaver can choose from.
1. work and study: this simply means that the high school leaver can decide to work alongside college or university as use the money from the job to settle university bills.
2. Scholarships: Am high school leaver can try scholarship opportunities tourther his education. A scholarship can be said to be a philanthropic act by a body or individual to reward or help individuals with tuition and other things as stated in the terms and conditions.
3. Setup a funding site: an high school leaver can set up a funding site in which donations can be made to fund the higher education.
Cheers.
Answer:
The correct answer is (3)
Explanation:
A Limited Liability Company, or LLC, is a kind of legitimate business structure that makes a body separate from the entrepreneur. The essential advantage in framing a LLC in your venture is that you, and any partner from your business, are protected from individual obligation. That implies if your business is sued, offended parties can just pursue your business resources and not your own ones, for example, your home.
Fluctuations in food and energy prices can be transitory.
<h3>What is
food and energy?</h3>
Animals, including humans, derive chemical energy from their food to support their metabolism, including their muscular activity. This chemical energy is known as "food energy."
Aerobic respiration, which involves mixing carbs, lipids, and proteins with oxygen from the air or water, is the primary source of energy for most creatures.
Alcohol consumption, polyols, and other minor dietary components like organic acids could further add to the body's energy requirements. Water, minerals, vitamins, cholesterol, and fiber are a few food items that may still be important for survival and health even though they don't supply much or any food energy. Anaerobic respiration, which doesn't need oxygen to work, is a technique used by some organisms to obtain energy from food.
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Solution :
A firm hires labor till a point where the cost of hiring is equal to the value of the additional revenue it produces.
We know ,
the wage rate = cos of hiring an additional worker
the value of the additional revenue that the firm produces = price x (MPI) marginal product of the labor.
Therefore, the firm will hire when :
Wage = value of the additional revenue it generates
Thus, wage = price x (MPI) marginal product of the labor ...........(i)
Therefore, given :
wage of a worker = $ 45
Price = $ 12
So, 45 = 12 x MPI
MPI = 3.8
So the marginal product of employing three days of labor = 25-18/4-3 = 7
Marginal product of employing four days of labor = 30-25/4-3 = 5
So the 4th day produces less revenue than the cost that it generates.
So, the firm should hire 3 workers.
