Estimate the impact of given on the tax

Reference no: EM132200105

Question: Consider the Pigovian Tax imposed on an industry as in Q3 of Homework 5 (question 3 from homework 5 says several identical firms in an economy with the market supply curve given by P=10+0.4Q. The firm is in a competitive market. The demand is given by P=100-0.4Q. The firms in the market also produce pollutants deriving a cost to the society SC = (0.1)Q) Estimate the impact of the following on the tax assuming that the population is 100.

(a) A study proposes that the environmental damage is half the impact of previous estimate. Therefore social cost is only 0.05Q for 100 people.

(b) Due to lower property prices the population affected by the industry doubles.

(Consider impact on both demand and social cost in b. and c.)

Reference no: EM132200105

Questions Cloud

Discussion about executive orders and immigration : In recent news there has been a great deal of discussion about Executive Orders and immigration.

Define hypothetical mission statement and objectives : Select a specific project designated as an Honoree by The Harvard Project on American Indian Economic Development. Based on Harvard's online Honoree profile.

Calculate the average inventory on hand at the eoq level : Calculate the average inventory on hand, at the EOQ level. Describe the effect of increasing the ordering costs on the value of EOQ.

Disadvantages of three different organizational structures : Name key advantages and disadvantages of three different organizational structures.

Estimate the impact of given on the tax : Consider the Pigovian Tax imposed on an industry as in Q3 of Homework 5 (question 3 from homework 5 says several identical firms in an economy with the market.

Creating and sustaining commitment and cohesion : What competencies are important for creating and sustaining commitment and cohesion?

What characteristics of a competitive market do they have : Are there any markets for goods or services that are close to a perfectly competitive market? What characteristics of a perfectly competitive market.

Wilma was told that her diagnosis had been error : Wilma was told that her diagnosis had been an error, and that she was not terminally ill. Wilma wants her car back. Can she recover it from Kenny?

Flight line avionics maintenance systems : SPC’s effect on Competitiveness The government invites two companies to bid for a contract to produce 100 flight line avionics maintenance systems.

User Account

All Pages