Homework answers / question archive / 1)MSc 5 15 p (1601) & MPC (200,10) - MPB eg a 600 On your diagram show, graphically, how a Pigouvian tax could work if a tax of $2 were to be imposed on the producers

1)MSc 5 15 p (1601) & MPC (200,10) - MPB eg a 600 On your diagram show, graphically, how a Pigouvian tax could work if a tax of $2 were to be imposed on the producers

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1)MSc 5 15 p (1601) & MPC (200,10) - MPB eg a 600 On your diagram show, graphically, how a Pigouvian tax could work if a tax of $2 were to be imposed on the producers. (Do so by copying and pasting your earlier diagram below and showing the new curve). [1 mark] (b) Using your diagram (at 2(b) above) and letters (A, B, C & D.) show the following areas after the tax: (i) the consumer surplus (A); (ii) the producer surplus (B); (iii) government revenue (C); and (iv) deadweight loss (D).

2)Read the following three statements: 41 a) Innovation and creativity are key drivers of an entrepreneur. b) The complaints of family, friends and colleagues regarding products and poor service can be a source of business ideas. c) Trade fairs and exhibitions are potential sources of business ideas. Which statement/s is/are correct? [1] a [2] b and c [3] a and c [4] a, b and [5] None of the options (1, 2, 3 or 4) is correct.

3)Determines the scale yields associated with the technology described by the production function Q = 1/2" in terms of parameter b.

4)

Refer to Exhibit 4-5. Suppose the government imposes a price ceiling at P = $0 for transplanted kidneys. The result will be a

Group of answer choices

surplus of kidneys equal to (Q₂ - Q₁).

surplus of kidneys equal to (Q₃ - Q₁).

shortage of kidneys equal to (Q₂ - Q₁).

shortage of kidneys equal to (Q₃ - Q₁).