1. John has been in the habit of mowing Willa's lawn each week for $20.
John"s opportunity cost is $15, and Willa would be wlling to pay $25 to have her lawn mowed.
What is the maximum tax the gov. can impose on lawn mowing
without dicouraging John and Willa from cotinuing their matually beneficial arrangement?
2. Explain how a firm in a competitive market identifies the profit-maximizing level of production. When should the firm raise production, and when should the firm lower prodcution?
3. solve for equilibrium price and quantity. What does how you?
Qd=400-(2P+T), Qs=100+3P. and T=15. (P is the price recieved by sellers and P+T is the price paid by buyer).