Increase equilibrium quantity of fuel-efficient cars

Assignment Help Microeconomics
Reference no: EM131635254

Question: The marginal private costs and the marginal private benefits of a firm producing fuel-efficient cars is represented in the following diagram (show the equilibrium P market, Q market). The government would like to increase the amount of fuel-efficient cars to be produced and sold to Q social. One way that the government can try to increase production of fuel efficient cars is by making them cheaper to produce, by subsidizing their production. Show, on the same graph, the amount of subsidy needed to increase the equilibrium quantity of fuel-efficient cars to Q social.

Reference no: EM131635254

Questions Cloud

What is the best outcome for becky and sarah : Becky and Sarah are sisters who share a room. Their room can easily get messy, and their parents are always telling them to clean it up.
Aqueous solution of potassium carbonate : An aqueous solution of calcium nitrate is allowed to react with an aqueous solution of potassium carbonate. The net ionic equation would contain.
Define what nursing assessment findings : What nursing assessment findings support the diagnosis of pneumonia
Analyse aspects of the painting : Analyse aspects of the painting, which help to convey the story of this myth - Explore the ideas and values of the two periods
Increase equilibrium quantity of fuel-efficient cars : The marginal private costs and the marginal private benefits of a firm producing fuel-efficient cars is represented in the following diagram.
Containing ethanol that burns in the presence of oxygen : Gasohol is a fuel containing ethanol that burns in the presence of oxygen to give carbon dioxide and water as follows
Sodium chloride and concentrated sulphuric acid : Sketch a labeled diagram to show how hydrogen chloride gas can be prepared and collected in the lab using sodium chloride and concentrated sulphuric acid.
What effect did the world war ii wartime experience : What effect did the World War II wartime experience have on African Americans - How did the war change African American attitudes towards
Evaluate the value of r-d projects : High Flyer Airlines wants to build new airplanes with greatly increased cabin space. This will allow High Flyer Airlines to give passengers more comfort.

Reviews

Write a Review

Microeconomics Questions & Answers

  Purchase a particular item from a potential supplier

ABC Company would like to purchase a particular item from a potential supplier. ABC does not know the supplier's specific cost structure for producing this item, but hope to estimate the cost using some information gathered from the supplier. ..

  What could author do to make that research more convincing

What could the author do to make that research more convincing? What could reasonably be done to improve the paper?

  Beliefs integral to the development

Need five sentences responding to each response to the questions. Two separate responses. Try not to use technical words. 1.Describe Janie's relationship to her Grandmother Nanny. What values or beliefs does her grandmother voice and how are Janie's ..

  Marginal revenue product

Because a monopoly hires workers up to the point where their marginal revenue product equals the wage rate, the monopoly will

  The socially optimal level of coal production i

1.The demand for coal lumps is given by the following: p=140-0.5*Q. The private marginal cost of coal lumps is given by the following: MC=20+0.5Q. In addition, there is an external cost of coal lumps (E) to residents who live near the coal mine where..

  Find the velocity of money

If the money supply is $500 and nominal income is $3,000, the velocity of money is and In Irving Fisher´s quantity theory of money, velocity was determined by

  Rate of return from the new factory

Employing the new factory would ultimately reduce average total cost and the present value of the gain from employing the new factory must be less or equal to $50 million.

  What is the equilibrium price and quantity of cigarettes

Suppose a public referendum is being held on whether or not to levy a tax on cigarettes. Currently, the supply of cigarettes is given by Qs = -900 + 200P. You estimate the demand for cigarettes to be Qd = 1200 - 50P. What is the equilibrium price ..

  Describe the profit maximizing

Explain the MC=MR Rule. Describe the market structures to which this rule applies and create a chart to describe the profit maximizing

  Question 1 define any key terms that you feel are important

question 1. define any key terms that you feel are important in answering the following question as they are defined in

  Determine the impact on the appropriate stakeholders

Design an economic policy solution to the problem - Analyze the economic theory used to complete the policy solution and determine the impact on the appropriate stakeholders.

  How can movie theaters improve the pricing strategy

How can movie theaters improve the pricing strategy to eliminate these inefficiencies? What is a disadvantage to your suggested approach?

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!

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