User Account

All Pages

Compensate the firm for the additional cost

Assignment Help Business Economics
Reference no: EM132163700

A firm uses gas (g) and machinery (m) to produce yachts(y), according to y=g0.5m0.5 .The firm chooses to produce 100 yachts, because there is exactly that much demand. The price of gas is 10, and the price of machinery is 20.

The marginal product of gas is 0.5(m0.5/g0.5) and the marginal product of machinery is 0.5(g0.5/m0.5)

How do I calculate the cost minimizing choices of g and m?

Then if the government raises the price of gas to 30 through a carbon tax and offers the firm compensation to exactly compensate the firm for the additional cost, how do I calculate how much they are going to compensate them exactly?

Reference no: EM132163700

Questions Cloud

Describe the environment and the people being observed : Describe the environment and the people being observed, i.e., age, gender, dress, etc. Discuss the nonverbal communication.
What processes can be put in place to manage these risks : What are the potential risks involved with this program, and what processes can be put in place to manage these risks?
What is more influential-genes or environment : An important and ongoing debate in psychology surrounds the question of nature vs. nurture. What is more influential: genes or environment?
Calculate a discount rate for get hired : Your fund plans to invest $10m into this startup. Calculate a discount rate for Get Hired using the average of comparable firms
Compensate the firm for the additional cost : Then if the government raises the price of gas to 30 through a carbon tax and offers the firm compensation to exactly compensate the firm for the additional
Why do you think that theres a huge gap in theory : Why do you think that there's a huge gap in theory (what we know we should do) and practice (what we're actually doing) of leadership development?
Methods and techniques for effective monitoring : Methods and techniques for effective monitoring, the progress, and controlling the project - Any risk reduction and obsolescence considerations
Discuss your views on what motivates us : Respond to the following in a Primary Post of at least 200 words. Discuss your views on what motivates us based on one of the theories discussed in your text.
Explain the different methods of economic forecasting : Explain the different methods of economic forecasting including expert opinion, opinion polls, surveys, economic indicators

Reviews

Write a Review

Business Economics Questions & Answers

  Economics assignment

This document contains various important questions and their appropriate answers in the subject field of Economics.

  Demand and supply curves

Economics is the study of the principles governing the allocation of scarce means among competing ends when the objective of the allocation is to maximize the attainment of the ends.

  Long-run perfectly competitive equilibrium for the firm

Evaluate Government intervene and correct this situation?(a) Explain the concept of a concentration ratio. A rise in the price of magarine Explain the impact of external costs and external benefits on resource allocation long-run perfectly c..

  Supply and demand diagrams

Explain each of the following using supply and demand diagrams,  With the use of a graph, explain how these two programs affect cigarette consumption and the price of cigarettes.

  Case study: fisher-price toys

The case study of the Fisher-Price Toys, Inc., a popular case in basic economics and management from the prestigious Harvard Business School.

  Draw the production possibility curve

Draw the production possibility curve and a. Define consumer surplus and producer surplus.

  Tax revenue

The Australian government administers two programs that affect the market for cigarettes

  Maximize total welfare

How many tickets to sell to maximize total welfare.

  Difference between the cv and the ev

The change in consumer surplus (?CS) is not "theoretically" justifiable like the CV and EV but it continues to be the most widely used measure of consumer welfare change. Explain how this can be reconciled

  Depict von neumann-morgenstern utility index u in a diagram

Depict the von Neumann-Morgenstern utility index u in a diagram

  What is the market solution

What is the market solution (market price and quantity) and What is the total surplus of the society under the market solution

  Calculate gross national product and net national product

Calculate gross national product and net national product

Free Assignment Quote

Assured A++ Grade

Get guaranteed satisfaction & time on delivery in every assignment order you paid with us! We ensure premium quality solution document along with free turntin report!

Submit Assignment

Academics

Major Subjects

Majors

Get In Touch

whatsapp: +1-415-670-9521

Phone: +1-415-670-9521

Email: [email protected]

TERMS & POLICIES

HELP & SUPPORT

All rights reserved! Copyrights ©2019-2020 ExpertsMind IT Educational Pvt Ltd