ECON 2J03 Study Guide - Indifference Curve, Form 10-Q, Externality
6 Apr 2014
School
Department
Course
Professor
Document Summary
Consider the following demand functions and cost functions of a finite resource. [subscript 2 refers to mwtp in dollars next year] [subscript 1 refers to mwtp in dollars in the current year] Find the following in an unregulated (untaxed) market: [3 marks] Next year"s total net benefit = $ (b) Total net benefit in the current year = $ In other words, 1 + r = 1. 5. The optimal tax rate in the current year = $ Consider the following table, which represents production possibility curve in a given economy. Consider a movement from point e to point d. Consider movement from point b to point a. The opportunity cost of one unit of g = The willing-to-pay functions of three individuals (a, b, c) for a given public good in a community are given below. [marginal cost as well as average cost of each unit of q is constant at ] (a)
