Damages associated with pollution from facility estimated

Assignment Help Business Economics

Reference no: EM13999017

Elm Industries receives profits from polluting according to the formula: pi =10Q−Q^2 where Q = pollution emitted (in tons), and profits are measured in dollars. The damages associated with pollution from this facility are estimated to be: D=Q^2 +2Q

(c) What is the efficient level of Q for this firm? How much profit would Elm Industries earn at this level of production? How much would total damages be? What would be the net benefits?

(d) What is the deadweight loss associated with Elm Industries ignoring the damages that its production causes? Show the deadweight loss on your diagram.

(e) Those who live near Elm Industries propose that it produce no more than Q = 1. What is the deadweight loss associated with this level of production? Show this DWL on your graph.

Reference no: EM13999017

Questions Cloud

Find the optimal basket containing these two goods : Consider a Cobb-Douglas utility function of the type u(x,y) =x2y2. The prices of the two goods x,y are px = $2 and py=$4 consumers income is given by m=$100. find the optimal basket containing these two goods. find the demand functions for x. Must be..

Finding the optimal basket for a consumer : A) in finding the optimal basket for a consumer we assume The preferences are exogenously given (we know the indifference map for this consumer) what can change the preferences and why? What would be the effect of change in preferences on a consumers..

Find the amount of consumer surplus for a linear demand : Find the amount of consumer surplus for a linear demand p= 20-2x for p=0 and p= 10. What is the maximum and minimum amount of CS a consumer can have for this demand and what are the prices? What is the inverse demand function for good x with the foll..

How should these impairments be accounted : Explain what is meant by the impairment value of property, plant, and equipment and intangible assets. How should these impairments be accounted for?

Damages associated with pollution from facility estimated : Elm Industries receives profits from polluting according to the formula: pi =10Q−Q^2 where Q = pollution emitted (in tons), and profits are measured in dollars. The damages associated with pollution from this facility are estimated to be: D=Q^2 +2Q. ..

What is magnitude of the magnetic field at ceter of torus : What is the magnitude of the magnetic field at 16.5 cm the ceter of torus? What is the magnitude of the magnetic field at 20.5 .5 cm the ceter of torus?

Budget constraint and show a few indifference curves : suppose a consumer prefers a sandwich with 2 slices of bread and 2 slices of ham. Assume that price per slice of bread is .10 and per Ham is .25. The consumers budget for lunch is 3.50. Write the budget constraint and show a few indifference curves.

As the percentage of the consumers income accounted : As the percentage of the consumer's income accounted for by a particular good decreases, demand for the good will:

Assignments- process of care paper : Assignments- Process of Care Paper. Access the Hospital Compare website (www.Hospitalcompare.hhs.gov) and select this (Hospital Zip Code) is 60453 Oak lawn IL, Advocate Christ Hospital & Medical Center

User Account

All Pages