Cures for production externalities include the use of (i) Pigouvian taxes (ii) setting up a market for the externality (iii) allowing firms to merge and (iv) transfer of property rights in other ways. Demonstrate how each of these policies can reduce production externalities in an economy

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Cures for production externalities include the use of (i) Pigouvian taxes (ii) setting up a market for the externality (iii) allowing firms to merge and (iv) transfer of property rights in other ways. Demonstrate how each of these policies can reduce production externalities in an economy

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Given the following Q TFC TVC TC AFC AVC ATC MC 0 ___ ____ 240 ____ _____ ____ _____ 1 ___ 120 360 ____ _____ ____ _____ 2 ___ 160 400 ____ _____ ____ ______ 3 ____ 180 420 ____ _____ ____ ____ 4 ____ 212 452 _____ _____ _____ ____ 5 ____ 280 520 _____ _____ ______ ____ Required complete the table above . Show your solution Useful Formulas TC=TFC+TVC AFC= AVC= ATC= Or ATC=AFC+AVC MC=
The marginal revenue product of labor is the: a. change in revenue resulting from adding an additional unit of labor. b. cost of additional labor necessary to produce an additional unit of output. c. change in output resulting from adding an additional unit of labor. d. change in labor necessary to produce an additional unit of output.
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in a perfect competition, the cost function of each of 100 firms is given as . C = Q^3\300 + 0.2Q^2+4Q+10 . the market demand function is given by Q= 8000-200P
Give the table below Labor total product Average Product Marginal (TP) (AP) Product(MP) 0 0 1 10 2 25 3 45 4 60 5 70 6 70 7 60 8 44 Required 1. Complete the table above by computing AP and MP. 2. Plot in one graph TP, AP and MP. Label graph completely . 3. Indicate the stage of production with its corresponding boundaries.
X Ltd has the following information relating to process production for period August 2012 Opening stock 500 units Degree of completion 60% Cost to date Kshs 2,800/= Cost incurred in August 2012 Kshs Direct material (2500 units introduced) 13,200 Direct labours 6,600 Production overhead 6,600 26’400 Closing stock 300 units: degree of completion 80% There was no loss in process Required Prepare the process account for august 2012
Tinsel Tin Company, an Australian company, mines tin using cheap, resource-wasteful techniques in a tropical country. The effects of the mining include pollution of freshwater streams from almost their sources to the sea. The local people used to fish, hunt near, get drinking water from and swim in these streams, but now none of these things are possible. Local people now buy canned meat for protein. It is relatively cheap and tends to be very poor quality with a very high fat content. As a result, the local people are much fatter than they used to be and their health is poorer. Tinsel has supplied a fully equipped medical clinic but expects the local people to supply the staff. Discuss each of the following questions. (a) Has Tinsel contravened, in your view, its ethical responsibilities? (b) Is it possible to trade off an ethical ‘bad’ with an ethical ‘good’? (c) Has Tinsel done enough to compensate for the change they have brought about in the local people’s lives?
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