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In Paris, hundreds of small bakeries produce bread for sale to their customers at a marginal cost of MC = 2 + 0.1Q. The inverse demand for bread is given by P = 10 - 0.1Q, where P is in euros per loaf and Q is loaves per hour. The baking of bread also creates a positive externality: There is nothing quite like the smell of fresh-baked bread. Tourists and residents receive external marginal benefits given by EMB = 2 - 0.02Q.
a. Find the quantity of bread produced in Paris in the absence of any government intervention.
b. To achieve the socially optimal output, government can use a price-based intervention. Determine the ideal measure for government to use to achieve this goal. Specify both the type of policy and its magnitude.
Susanna Nanna is the production manager for a furniture manufacturing company. The company produces tables (X) and chairs (Y). Each table generates a profit of $80 and requires 3 hours of assembly time and 4 hours of finishing time. Each chair gen..
At a product price of $ 40, how many units will this firm produce in the short-run b)At a product price of $ 50, how many units will this firm produce in the short-run c) At a product price of $ 60, how many units will this firm produce in the short..
For the duopoly model (1)-(2): Find all critical points, find the type of these critical points. Problem- The duopoly model describes a market with two firms only. They produce the same product and the supply is Q = q1 + q2
Develop a minimum 6-page paper that examines the topic addressing all questions with at least two references and bibliography.
What type of market structure does it represent?
In a hypothetical economy, the monetary aggregate M1 equals 120,000 pesos, and M2 equals 320,000 pesos. The following information about this economy is also available: Money market deposit accounts 80,000 Amount of currency held outside of banks.
Find the equilibrium price and quantity in the black market.
What is the consumption level of the consumer in such a case? Provide an interpretation of this possibility.
A $10,000 mortgage bond with a bond interest rate Of 8% per year, payable quarterly, was purchased for $9200. The bond was kept until it was due, a total of 7 years. What rate of return was made by the purchaser per 3 months and per year.
Use the given equation and determine the demand equation as a function of Ps if the price of other pastas (Po) is $2,
The artist has tried to make the graph attractive by using the wheel of a car for the "pie." Is the graph still a correct display of the data? Explain your answer.
Based on your findings from the OOH, write a brief summary of the median earnings, number of current jobs, and projected job creation for the future for your selected occupations.
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