Calculate what the total surplus would be at the private

Reference no: EM133650137

Question: Suppose the market demand function for newspapers is given by QD=90-3P. In the production of newspaper, several chemicals are released into the atmosphere. The supply function for newspapers is given by QS=2P-30-T, where T represents the external cost created in the production process for newspapers.

a) Find the equilibrium price and quantity that would emerge in the private market for newspaper.

b) An economic consulting firm has determined that the external cost created by the chemicals released during newspaper production is $5 per unit. Find the socially optimal price and quantity of newspapers.

c) Calculate what the total surplus would be at the private market price and quantity.

d) Calculate what the total surplus would be at the socially optimal price and quantity.

Reference no: EM133650137

Questions Cloud

Calculate the user charge that will bring : If not, calculate the user charge (toll charge) that will bring enough financial resources for school investment in 2032

Explain what this number is and what it measures : Explain what this number is and what it measures. Think about the factors that contribute to HCVA. How should the company consider the importance of this number

Do you think the devadasi are practicing religiosity : Based on the arguments presented in this chapter, do you think the Devadasi are practicing religiosity, superstition, or prostitution? Why?

How does it play a legitimate role in theology and scripture : There are 4 sources of theology, the first one is Tradition how does it play a legitimate role in Theology and scripture?

Calculate what the total surplus would be at the private : Calculate what the total surplus would be at the private market price and quantity and Calculate what the total surplus would be at the socially optimal price

Describe your company to someone who is not familiar with it : Where and who are their customers? Write this section as if you are describing your company to someone who is not familiar with it.

How gods are different in these three major religions : Discuss how Gods are similar or different in these three major religions: Christianity, Islam, and Hinduism.

What is the basic argument used for rationing bandwidth : What is the basic argument used for rationing bandwidth used by Internet providers? How would it benefit them and affect consumers?

What ethical issues are involved at each of the seven levels : What additional facts, if any, would you like to know before completing your analysis? What ethical issues are involved at each of the Seven Levels of Integrity

User Account

All Pages