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Problem: Assume an otherwise well-functioning competitive market with the following: Demand: P = 1050 - 0.1Q; Private-cost supply: P = 50 0.2Q. Production of each unit of output Q above leads to a marginal external cost of $150, which implies social-cost supply: P = 200 0.2Q. A. Assuming firms can freely pollute in the absence of regulation, compute the "free market" equilibrium P, Q? B. Compute the dollar amount of total external cost generated when firms can freely pollute in the market equilibrium above, and derive the actual total net gains from trade. Show your work? C. Assuming firms pay a tax and thus operate along the social cost supply curve, compute the "socially optimal" equilibrium P, Q, and total actual gains from trade. Assume the tax revenue fully offsets any remaining negative externalities. Show your work?
How the Starting & Stopping of 3-Phase Motor from more than One Place Power & Control diagrams work ? include a Diagram with the answer
Why wouldn't a much simpler analysis (such as a OLS regression or comparison of averages) have given an accurate answer? What empirical techniques are used in the article? How do they solve econometric problems?
what would be the effect of each of the following on the supply of salsa in the united states? in each case identify
Explain the difference between a monopoly and an oligopoly, and a cartel and provide an example of a monopoly, an oligopoly, and a cartel.
Suppose that the world price of eggs is $1 a dozen, Canada does not trade internationally, and the equilibrium price of eggs in Canada is $3 a dozen.
If demand is given with the following formula P=20-Q, and MR is given with this formula MR=20-2Q, and we also know that MC is equal 4, What is the Consumer surplass, a. 8, b. 12, c. 32, d. 64.
Suppose that the following data characterize the hypothetical economy of Trance: money supply = $200 billion; quantity of money demanded for transactions = $160 billion; quantity of money demanded as an asset = $10 billion at 12 percent interest, inc..
Why do actors and actresses earn so much compared to the chosen labor group? What are trends in the labor market for chosen labor group that you can identify?
A family has a target of $1500 for the income that it needs to earn each week. Both adults in the family work at ?exible jobs where they have a choice over how many hours to work.
Based on the specific standards violated, discuss what needs to be done by employers (compliance plan) to comply with the specific standard or standards that were violated.
Consider a market in long-run equilibrium, where the firm’s mix of inputs is the cost-minimizing mix of inputs.
Analyze the major barriers for entry and exit into the airline industry.
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