A hog farm is located by a lake. The farmer can dispose of waste by dumping it in the lake, or he can truck it to a landfill site. The cost of trucking is $125 a ton, and each additional ton trucked decreases the price by $25 a ton. A rowing club also uses the lake. The table shows the profit made by the rowing club. What is the efficient amount of waste dumped in the lake each month?

3 tons
6 tons
zero
3.5 tons

A hog farm is located by a lake. The farmer can dispose of waste by dumping it in the lake, or he can truck it to a landfill site. The cost of trucking is $125 a ton, and each additional ton trucked decreases the price by $25 a ton. A rowing club also uses the lake. The table shows the profit made by the rowing club. If transactions costs are low, the efficient level of waste will be dumped ______________.

only if the government intervenes
only if the rowing club owns the lake
only if the hog farm owns the lake
if either the hog farm or rowing club own the lake

The table shows the total benefit that an industry receives by emitting sulfur dioxide. There are no social benefits, and the table shows the marginal social costs. There are no costs to the industry. The efficient level of pollution is _________ million tons a year.

6.5
between 8 and 9
between 9 and 10
6

The table shows the total benefit that an industry receives by emitting sulfur dioxide. There are no social benefits, and the table shows the marginal social costs. There are no costs to the industry. To achieve the efficient level of pollution, the government will ____________.

subsidize pollution
impose a charge of $400 a ton
impose an emission charge of $80 a ton
impose a charge of $380 a ton

To achieve the efficient amount of pollution, governments can set taxes (T) such that ________.

MC = MSC + T
MC = MSC - T
T = MC + MSC
MSC = MC - T

The demand for bus service is perfectly elastic at a price of $1.25 a ride. The table shows the bus company's marginal cost and the marginal social cost of the bus service. The competitive quantity of bus rides per week is ____________.

350
400
200
250

The demand for bus service is perfectly elastic at a price of $1.25 a ride. The table shows the bus company's marginal cost and the marginal social cost of the bus service. If the government levies a tax on bus rides so that the bus company takes into account the marginal social cost, the tax will be______ a ride.

$0.50
$0.60
$0.30
$1.25

The marginal cost of educating a student is $20,000, and this cost is independent of the number of students. The figure shows the marginal private benefit that a student receives from education. If schools are competitive, how many students are enrolled?

60,000
35,000
zero
depends on demand

The marginal cost of educating a student is $20,000, and this cost is independent of the number of students. The figure shows the marginal private benefit that a student receives from education. An independent government agency determines that the efficient number of students is 100,000. What is the marginal social benefit from education?

$10,000
$40,000
$35,000
depends on demand

The marginal cost of educating a student is $20,000, and this cost is independent of the number of students. The figure shows the marginal private benefit that a student receives from education. An independent government agency determines that the efficient number of students is 100,000. What total subsidy will make the efficient number of students undertake education?

$1.0 billion
$1.2 billion
$10,000
depends on demand

Please enter your name and press the SEND button