Difference between the optimal level or the amount generated

Assignment Help Business Economics

Reference no: EM13191078

Consider a market in which consumption of the good being traded generates a positive externality.
There are 100 identical consumers, each with a utility function given by 1/2 √q+m+√G, where G denotes the total level of consumption in the market.
The good is sold by competitive firms that produce with a constant marginal cost of 1 $/unit.

What is the difference between the optimal level of total consumption minus the amount of total consumption generated by the market?

Reference no: EM13191078

Questions Cloud

What information is required to setup a new account : What information is required to setup a new account - what category information is collected by the site and what are the default privacy settings

State hydrolysis of an ester using sodium hydroxide : Hydrolysis of an ester using sodium hydroxide (2M) is usually a fast reaction. Why would it take almost 40 minutes to complete? It is imperative to consider the location of each reagent within the vial.

Why economists call the pigouvian taxes : Suppose the demand for artificial tanning is very elastic, while the demand for sugary soda is not. Compare the effects of two equal sized taxes on the equilibrium market price, the equilibrium quantity consumed, and the tax revenue raised.

State how many neutrons and protons are contained : How many neutrons and protons are contained in the nucleus of this isotope?

Difference between the optimal level or the amount generated : What is the difference between the optimal level of total consumption minus the amount of total consumption generated by the market

Define what would the total pressure become : the partial pressures of gas A and gas B respectively are 0.298 ATM and .702 atm if 0.130 mol a 3rd gas is added with no change in volume or temperature, what would the total pressure become?

How about if you are a franchise dealer : A small-volume automaker limits the number of franchised dealers in the U.S. and gives them exclusive territories. There are also non-dealers who have no official connection with the manufacturer.

Define van der waals constants : Van der Waals constants can be found here. P= ? atm Use the ideal gas equation to calculate the pressure under the same conditions. P= ? atm

Potential sales and department store transactions : Identify the potential sales and department store transactions that can be stored within the database and design a database solution and the potential business rules that could be used to house the sales transactions of the department store.

User Account

All Pages