Determine the value of a product charge that would achieve the efficient solution.
The market for a chemical pesticide can be modeled as given below, where Q is measured in thousands of pounds:
MSB = 20 – 0.4Q MPB = 20 – 0.3Q MSC = MPC = 12 + 0.1Q
To achieve the efficient solution, a product charge should be set equal to ?MEB, evaluated at QE. In this market, this charge is calculated as follows:
Product charge = ?MEB
= ?(?0.1(QE))
= 0.1 (16) = $1.60
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Refer to the above table. How could the U.S. government justify its decision to offer a subsidy to a profitable and successful business?
What will be an ideal response?
If major traders believe the price of a stock should be higher than its current market price,
A) they have an incentive to sell the stock. B) their actions will result in the information they possess being incorporated into the price of the stock. C) there is little they can do because government regulation precludes their acting on what they know. D) they should petition the Securities and Exchange Commission to authorize an adjustment in the price of the stock.
Environmental CSR that is undertaken to reduce negative externalities might be
A) altruistic. B) strategic. C) undertaken because of Internet-based scrutiny. D) All of the above.
In Japan, the market value of the land is approximately four times that of all the land in the United States, even though Japan is only about the size of California. The most likely explanation for this fact is?