Reference no: EM131004919
For the purpose of these exercises, let the firm's profits be given by P(x) = 20x - x^2, and let damages be given by D(x) = 2x^2.
You are asked to describe equilibrium outcomes for this economy under several alternative regulatory and/or legal regimes. For each of the situations described below, compute the following quantities:
Level of output x
Producer surplus, which equals profits, plus the net effects of any taxes, subsidies, or side-payments agreed to under the terms of a contract with the consumers; and Net damages to the consumer, likewise net of any payments made to or received from the polluting firm or the government.
Compute these three quantities under each of the following regulatory/legal regimes.
1. Consumers are awarded a transferable property right to clean air. The firm must reach a negotiated agreement with consumers before any production can begin. The firm and the consumer reach a contract that specifies two terms: an allowable maximum level of pollution x, and the amount A of a payment that the polluting firm must make to the consumer.
2. Same as (1), except property rights are awarded initially to the polluting firm.
|
Explain how net exports affect the u.s. economy
: Explain how net exports affect the U.S. economy. Describe both positive and negative impacts on GDP. Why do national income accountants use net exports to compute GDP, rather than simply adding exports to the other expenditure components of GDP?
|
|
Transactions using the cash method
: If Sweet Catering had recorded transactions using the Cash method, how much net income (loss) would they have recorded for the month of May? If there is a loss, enter it with parentheses or a negative sign.
|
|
Supply-demand curves that depsicts its market equilibrium
: Asparagus is an identified good, draw a graph of both the supply and demand curves that depsicts its market equilibrium. From the original graph, describe the effects on the supply and demand (shift left or right) that would cause the following chang..
|
|
Which the demand curve is upward-sloping
: In theory, “Giffen good” is a good for which the demand curve is upward-sloping, which violates the law of demand. Please provide at least one example as a Giffen good and explain briefly why the demand curve is upward-sloping
|
|
Consumers are awarded a transferable property
: Producer surplus, which equals profits, plus the net effects of any taxes, subsidies, or side-payments agreed to under the terms of a contract with the consumers; and Net damages to the consumer, likewise net of any payments made to or received from ..
|
|
Find the centroid of the solid region
: Find the centroid of the solid region which lies above the cone z = √(x2 + y2) and below the plane z = 6. The centroid of a solid region is the same as the center of mass of a mass distribution.
|
|
What this factor means in your own health status
: You will find four factors that contribute to health behavior and health seeking. Choose one of the four factors and thoroughly discuss, in your own words, including your understanding of its definition and what this factor means in your own healt..
|
|
Diagram of the life-saving surgical procedure market
: Suppose the equilibrium price for a life-saving surgical procedure (inelastic demand) is initially $10,000. Now suppose that a law is passed which requires hospitals (the suppliers of the surgical procedure) to pay a $1,000 per-unit excise tax on eac..
|
|
Find a set of parametric equations for the line tangent
: Find the unit tangent vector T(t). r(t) = t2i + tj +4k , P(9, 3, 4) Find a set of parametric equations for the line tangent to the space curve at point P.
|