Scenario:A factory produces widgets, but during production,…
Scenario:A factory produces widgets, but during production, it emits pollution that affects the nearby community. The cost of producing one widget is $50. Each widget creates pollution that imposes an external cost of $20 per widget on the community. Question: What is the socially optimal price of a widget that accounts for the externality?
Read DetailsSuppose that you are given a $50 budget at work that can be…
Suppose that you are given a $50 budget at work that can be spent only on two items: staplers and pens. If staplers cost $10 each and pens cost $2.50 each, then the opportunity cost of purchasing one stapler is how many pens? Enter your answer as a whole number.
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