18) You rent a car for $29.95. The first 150 miles are free, but each mile thereafter costs 15 cents. You drive it 200 miles. What is the marginal cost of driving the car?
A) A marginal cost is the additional cost to you over and above the costs you have already incurred. Hence here the marginal cost is $7.50
26) State whether the following are microeconomic or macroeconomic policy issues:
a. Should U.S. interest rate be lowered to decrease the amount of unemployment? macroeconomics
b. Will the fact that more and more doctors are selling their practices to managed care networks increase the efficiency of medical providers? Macroeconomics
c. Should the current federal income tax be …show more content…
b. Discuss the concepts of market failure and government failure in relation to the goods you listed.
A) Government failure (or non-market failure) is the public sector analogy to market failure and occurs when government intervention causes a more inefficient allocation of goods and resources than would occur without that intervention. In not comparing realized inadequacies of market outcomes against those of potential