ExternalitiesQuestions

ExternalitiesQuestions - Review Questions Q1. Two .rms are...

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Review Questions Q1. C X = 0 : 5 X 2 + 7 X + 1845 : The second Y according to the cost function C Y = 0 : 038 Y 2 + 12 X products in perfectly competitive markets with P X = 70 and P Y = 14 : 06 . a) Find the optimal X and Y b) Find the optimal X and Y c) Find the Pigouvian tax that will lead the socially e¢ cient amount of X . Discuss the strengths and weaknesses of the tax approach for dealing with externalities. Q2. that is shared by all villagers. The milk production of a typical cow depends on how many cows graze on the common pasture, i.e., if there are many cows, then milk production for
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This note was uploaded on 06/09/2008 for the course ECON 101 taught by Professor Buddin during the Spring '08 term at UCLA.

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ExternalitiesQuestions - Review Questions Q1. Two .rms are...

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