User Account

All Pages

Find dollar value waste-end charge that restore efficiency

Assignment Help Microeconomics
Reference no: EM13914891

Suppose the following equations have been esti- mated for the market for hazardous waste services:

MSB = 30 - 2.5Q MPC = 1.1 + 0.9Q
MSC = 1.5 + 1.25Q

where Q is thousands of tons per week, and the dollar values are per ton. Assume there are no consumption externalities in this market.

a. State the equation that represents the negative externality in this market.

b. Algebraically solve for the competitive and socially optimal price and quantity combinations. Quantify the extent of the resource misallocation associated with the competitive solution.

c. Find the dollar value of a waste-end charge that would restore efficiency to this market.

Reference no: EM13914891

Questions Cloud

The flower company began the accounting period : The Flower Company began the accounting period with an $80,000 credit balance in its Accounts Payable account.
What is the balance of allowance for uncollectible accounts : Prepare the entry to record the uncol- lectible accounts expense. What is the balance of Allowance for Uncollectible Accounts after this adjustment?
Book-market value of debt-weighted average cost of capital : Klausenheimer has earnings before interest and taxes of $1,500,000. The book and the market value of debt is $1.7million. The unlevered cost of equity is 15.5 percent while the pre-tax cost of debt is 8.6 percent. The tax rate is 38 percent. What is ..
Objectives for the conference decision case : Define the Objectives for the Conference Decision Case. Objectives should be separated into fundamental and means objectives.
Find dollar value waste-end charge that restore efficiency : Algebraically solve for the competitive and socially optimal price and quantity combina- tions. Quantify the extent of the resource mis- allocation associated with the competitive solution.
Controversial topic in recent media stories : The escalation in computer crime is becoming an increasingly controversial topic in recent media stories. However, the way in which cybercrime is handled differs depending upon the country that has jurisdiction.
Highlighting factors of selection method : The objective of the Course Project is to provide you with practice in creating, justifying, and explaining a Decision-making Proposal. All elements involved in the creation of this proposal, from problem definition through action plan, must be co..
Record each of the following transactions : Record each of the following transactions in general journal form and then show the effect of the transaction in a horizontal statements model. The first transaction is shown as an example.
Arithmetic return-estimate of the future annual returns : Over a 40-year period an asset had an arithmetic return of 12.5 percent and a geometric return of 10.4 percent. Using Blume’s formula, what is your best estimate of the future annual returns over 7 years? 11 years? 20 years?

Reviews

Write a Review

Microeconomics Questions & Answers

  The free rider problem

Question: Explain why the free rider problem makes it difficult for perfectly competitive markets to provide the Pareto efficient level of a public good.

  Failure of the super committee is good thing for economy

Some commentators have argued that the failure of the “Super committee” is good thing for the economy?  Do you agree?

  Case study analysis about optimum resource allocation

Case study analysis about optimum resource allocation: -  Why might you suspect (even without evidence) that the economy might not be able to produce all the schools and clinics the Ministers want? What constraints are there on an economy's productio..

  Fixed cost and vairiable cost

Questions:  :   Which of the following are likely to be fixed costs and which variable costs for a chocolate factory over the course of a month?  Explain your choice.

  Problem - total cost, average cost, marginal cost

Problem - Total Cost, Average Cost, Marginal Cost: -  Complete the following table of costs for a firm.  (Note: enter the figures in the  MC   column  between  outputs of  0 and 1, 1 and 2, 2 and 3, etc.)

  Oligopoly and demand curve problem

Problem based on Oligopoly and demand curve,  Draw and explain the demand curve facing each firm, and given this demand curve, does this mean that firms in the jeans industry do or do not compete against one another?

  Impact of external costs on resource allocation

Explain the impact of external costs and external benefits on resource allocation;  Why are public goods not produced in sufficient quantities by private markets?  Which of the following are examples of public goods (or services)? Delete the incorrec..

  Shifts in demand and movements along the demand curve

Describe the differences between shifts in demand and movements along the demand curve. What are the main factors which can shift the demand curve? Explain why they cause the demand curve to shift. Use examples and draw graphs to support your discuss..

  Article review question

Article Review Question: Read the following excerpts from the article "Fruit, veg costs surge' by Todd, Dagwell, published in the Herald on January 25th 2011 and answer questions below:

  Long-term growth, international trade & globalization

Long-term Growth, International Trade & Globalization:- This question deals with concepts such as long-term growth, international trade and globalization. Questions related to trade deficit, trade surplus, gains from trade, an international trade sce..

  European monetary union (emu) in crisis

"Does the economic bailout of Spain and Greece spell the beginning of the end for the European Monetary Union (EMU)?"

  Development game “settlers of catan”

Read the rules of the game, the overview and the almanac for the Development Game "Settlers of Catan"

Free Assignment Quote

Assured A++ Grade

Get guaranteed satisfaction & time on delivery in every assignment order you paid with us! We ensure premium quality solution document along with free turntin report!

Submit Assignment

Academics

Major Subjects

Majors

Get In Touch

whatsapp: +1-415-670-9521

Phone: +1-415-670-9521

Email: [email protected]

TERMS & POLICIES

HELP & SUPPORT

All rights reserved! Copyrights ©2019-2020 ExpertsMind IT Educational Pvt Ltd