For this question, we consider a small open economy that takes international pri

ID: 1136056 • Letter: F

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For this question, we consider a small open economy that takes international prices as given. That way, all agents care about maximizing profit. (a) Suppose that an activity x generates a reduction in wealth to others, i.e. a negative 1. externality, denoted by E(x)x. In other words, the marginal external harm is constant. At what rate should the government set the Pigouvian tax on the activity to ensure economic efficiency? (b) Suppose the externality is now given by Ex)x2. The monetary value generated by the economic activity is b(x) 24x, while the private cost of the activity is given by C(x) 2x2. What is the efficient level of economic activity? What is the Pigouvian tax rate on this activity that yields this efficient outcome? Hint: the derivative of x2 is 2x

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Is the following an example of a negative externality? A factory emits pollution into the air as a by-product of production

Yes, it is an example of a negative externality

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For this question, we assume a write-back and write-allocate cache with 16 byte

For this question, we focus on four parts: I, the gene that produces the repress

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For this question, we consider a small open economy that takes international pri

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