Bundle: Principles of Economics, 8th + MindTap Economics, 1 term (6 months) Printed Access Card
8th Edition
ISBN: 9781337378710
Author: N. Gregory Mankiw
Publisher: Cengage Learning
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Question
Chapter 12, Problem 4QR
To determine
Reason for taxing consumption rather than taxing income.
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Students have asked these similar questions
A movement along an economy's production possibility frontier with output on one axis and environmental
quality on the other shows that:
technological improvements may lead to a sustainable economy with higher consumption in the future
and better an improved environment.
producing more goods and services lowers environmental quality.
producing more goods and services raises environmental quality.
a high use of natural resources to produce more goods and services today may lead to an unsustainable
economy with lower consumption in the future.
Don't used Ai solution
=
-
12. Recall the market setting in Question 3, where
the demand curve is P = 10 – 2Q, and mar-
ginal cost is c 2. Now suppose that two
firms, numbered 1 and 2 compete over this de-
mand curve. They produce quantities Q₁ and
Q2, hence total output is given by Q = Q1+Q2.
The best response function of firm 1 to firm 2,
labeled Q₁ = B₁ (Q2) is given by
(a) 2-2Q2
-
4
(b) 2-Q2
(c) 2 – 02
Q2
Q2
(d) 2-
(e) 2-Q
4
13. In the previous question, the Cournot-Nash
equilibrium quantity produced by each firm is
(a) 1
(d) 2
(b)
3
2
(e)
52
(c)
43
3
Chapter 12 Solutions
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