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The Inverse Demand for Energy-Efficient Refrigerators Is P = 2,000

question 114

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The inverse demand for energy-efficient refrigerators is P = 2,000 - 10Q, where Q measures refrigerators per month. The inverse supply of energy-efficient refrigerators is P = 10Q. Suppose the use of an energy-efficient refrigerator reduces carbon dioxide emissions, generating an external marginal benefit of $100. The socially optimal quantity of energy-efficient refrigerators is ____.


Definitions:

FUTA Tax

Federal Unemployment Tax Act tax, which is a payroll or employer tax paid to fund state workforce agencies.

SUTA Tax

State Unemployment Tax Act tax, which is a payroll tax paid by employers based on the state's unemployment insurance rate and the taxable wage base.

Employee Vacation Benefits

Employee vacation benefits refer to the paid time off provided to employees as part of their compensation package, allowing them time to rest and recharge.

Estimated Liabilities

Liabilities that are anticipated but not yet confirmed or quantified, often used in accounting for future expenses.

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