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Suppose the marginal cost for mineral water production in a small isolated country is 20 + Q, and the demand for mineral water is P = 80 - 2Q, where P is the dollar price and Q is the tons of mineral water produced. Suppose the processing procedure in mineral water production generates pollution, which incurs damage to the environment described by a marginal function of MEC = Q.
a) What quantity will the market tend to without any intervention?
B) What price will the market tend to without any intervention
C) What is the socially optimal quantity?
D) What is the socially optimal price?
E) Does the competitive equilibrium incur any deadweight loss? If so, how much? If none, enter 0
F) If the government intends to impose a production tax to reach the socially optimal level of pollution, how much should the tax be?
Some commentators have argued that taxes on unhealthy foods or food components (such as sugar, fat and salt) should be imposed.
What is the "perverse loop," according to Smaghi and How does he fix it?
Imagine that you are a manager running a unit in a rehabilitation center. Up to this point, your primary population of payers has been elderly patients who come into the center for physical therapy. What potential solutions would you suggest to your ..
Eight years ago, the Blank Block Building Company installed an automated conveyor system for $38,000. When the conveyor is replaced, the net cost of removal
what was the present worth of savings associated with the cheaper chip over a 2-year period at an interest rate of 24% per year, compounded monthly?
What is your recommendation? Contributed by Paul R. McCright, University of South Florida.
Which of the following action(s) the Central banks can use to control movements in exchange rates
Distinguish between interindustry and intraindustry trade, providing examples of each. Offer possible explanations for interindustry and intraindustry trade.
The state of California has a chronic budget deficit. In 2009 and 2010 the state has raised taxes and fees and cut spending
After reading the case study and other available information carefully, prepare a two page (double-spaced) essay addressing the questions
The monopolist is able to produce the good for either type of customer at a constant marginal cost of 2, and the monopolist has no fixed costs. If the monopolist practices group price discrimination, what are the profit maximizing prices and quantiti..
In the US, rent-price ratios are lower in cites in coastal California than in cities in middle/inland US. What factor(s) might explain this?
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