Firm 1 produces output x with a cost function C1(x) = x 2/200. Firm 2 produces output y with a cost function C2(x, y) = y 2 100 − 2x. Both firms face competitive product markets, with respective prices px = 4 and py = 5. At what rate should x be taxed or subsidized if the government wants the firms to produce the socially optimal level of each good?

Match the terms with the appropriate definition. 1. work done for pay job 2. series of related jobs based on knowledge, training, tasks performed, interests, and experience career 3. buying or selling products and services using the internet mediation 4. wage amount after deductions are withheld net wage 5. a way a person chooses to live his or her life e-commerce 6. the people who are both able and willing to work technology 7. unequal treatment of others based on a bias concerning a person’s characteristics such as race, religion, gender, or age discrimination 8. the act of sharing information lifestyle 9. the use of a third party to make suggestions workforce 10. knowledge and tools used to perform tasks communication