Calculate the efficient quantity of honey in market

Reference no: EM133231923

Assignment:

Assume there are 100 bee keepers raising honeybees in North Carolina. Each bee keeper has a supply curve of qS = P/2 - 1, where quantity is measured in thousands of jars of honey. Assume market demand for honey can be represented by QD = 20 - 10P.

a. What will be the price and quantity in the market? Draw a supply and demand diagram and indicate the equilibrium price and quantity while making sure to label your axes and intercepts. Now assume that each jar of honey produced generates $2 of benefit to society from the honeybees pollinating the crops and flowers at nearby farms.

b. Label the MSC, MSB, MPC, and MPB curves in this market on your diagram from part (a). Calculate and label the efficient quantity of honey in the market. Does the market over-produce or under-produce?

c. Explain why it might be a good idea for the government to intervene in this market. What would be the optimal policy for them to enact and why?

Reference no: EM133231923

Questions Cloud

Briefly discuss the structure and powers of the articles : Bakersfield College, Briefly discuss the structure and powers of the Articles of Confederation. Why did they fail? Discuss in detail the Virginia Plan

What is the current state of the us economy : Include a general statement about the state of the economy and then brief commentaries on each of the measures. Include other measures if you want.

What are the key factors for competitive success and why : What are the key factors for competitive success and why? Read the short explanation of the 4 basic types of economies

What pennsylvania-related history topic is the paper : What Pennsylvania-related history topic is the paper about? Why is it worth discussing and What particular Pennsylvania-related historical issue is being

Calculate the efficient quantity of honey in market : Label the MSC, MSB, MPC, and MPB curves in this market on your diagram from part (a). Calculate and label the efficient quantity of honey in the market.

What is the conduct like of the plastic pivot : how is the worth of second neighboring yield zone become more than yield second up to pivoted length of primary part and what is the conduct like

Think about the needs of non-profit organizations : Think about the needs of non-profit organizations. What kinds of services could an incubator focused on helping not-for-profits provide

It is fair to classify united states as a flawed democracy : POL 166 Glendale Community College, drew much attention by downgrading the United States to a flawed democracy. It is fair to classify the United States

Examine the role of vision in the change management process : Examine the role of vision in the change management process. Differentiate the various approaches to creating a change vision statement

User Account

All Pages