Astudy finds that the noise from lawn mowers is harmful; hence, the government imposes a $25 tax on the sale of every unit. this amount accurately accounts for the external cost of the noise pollution. before the corrective tax, basic push mowers regularly sold for $190. after the tax is in place, the market price for basic push mowers rises to $195.
because of the tax, the number of basic push mowers sold will increase or decrease?

the socially optimal price of basic push mowers is $

the private market price is $

a firm selling basic push mowers receives $ after it pays the tax.

The cook corporation has two divisions--east and west. the divisions have the following revenues and expenses: east west sales $ 603,000 $ 506,000 variable costs 231,000 300,000 traceable fixed costs 151,500 192,000 allocated common corporate costs 128,600 156,000 net operating income (loss) $ 91,900 $ (142,000 ) the management of cook is considering the elimination of the west division. if the west division were eliminated, its traceable fixed costs could be avoided. total common corporate costs would be unaffected by this decision. given these data, the elimination of the west division would result in an overall company net operating income (loss)