Each citizen in a small town suffers 5 units of irritation for each bushel of leaves burned in the town. The charge for hauling a bushel of leaves to the land fill is a fee equal to 20 units of irritation. There are 25 people in the town, each of whom minimizes personal irritation and has 10 bushels of leaves. What is the marginal cost to society when a bushel of leaves is burned?
What will be an ideal response?
Since 5 units of irritation are felt by 25 different people the total cost per bushel for burning is 125 units of irritation.
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Which of the following is an example of an implicit cost a firm might incur?
A) the opportunity cost to investors of the funds invested in the firm B) the wages paid to employees C) utility payments D) the payment for medical insurance coverage
Suppose output is $35 billion, government purchases are $10 billion, consumption is $15 billion, and net exports are $4 billion. Assume net factor payments equal 0
(a) Calculate the equilibrium amount of investment. Show your work. (b) Calculate the equilibrium amount of absorption. Show your work. (c) Calculate the equilibrium amount of the financial account balance. Show your work.
A union can influence the equilibrium wage rate by:
a. All of the answers are correct. b. lobbying for legislation to reduce immigration. c. collective bargaining. d. featherbedding.
The primary difference between a change in demand and a change in the quantity demanded is:
A) a change in demand is a movement along the demand curve, and a change in quantity demanded is a shift in the demand curve. B) a change in quantity demanded is a movement along the demand curve, and a change in demand is a shift in the demand curve. C) both a change in quantity demanded and a change in demand are shifts in the demand curve, only in different directions. D) both a change in quantity demanded and a change in demand are movements along the demand curve, only in different directions