Knapp1 - WEEK 1 CH1, Q4 Selwyn pays $19.95 per month for...

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WEEK 1 CH1, Q4 – Selwyn pays $19.95 per month for unlimited internet access. During the average month he was logged on the Web for 17 hrs. What is the average cost (AC) per month of an hour of web time? What is the marginal cost (MC) of an additional hour of Web time? AC = $1.17 MC=$0 CH1, Q5 – A question facing many U.S. states is whether to allow casino gambling. States with gambling have seen a substantial increase in tax revenue flowing to state government. This revenue can be used to finance schools, repair roads, maintain social programs, or reduce other taxes. a. Recall that efficiency means producing what people want at the least cost. Can you make an efficiency argument in favor of allowing casinos to operate? Local casinos allow people to gamble without having to travel to establish gambling locations like Las Vegas. b. What nonmonetary costs might have an impact on the efficiency argument you presented in part a? c.
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Knapp1 - WEEK 1 CH1, Q4 Selwyn pays $19.95 per month for...

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