Reference no: EM131274033
"Let the marginal benefits and marginal costs of gasoline consumption (where Q=gallons) be:
MB (Q) = 5 - 0.2Q
MC (Q) = 0.03Q
a) Solve for the equilibrium price and quantity assuming the market is perfectly competitive.
Now you learn that each gallon of gasoline burned generates additional social costs from the pollution of NOX, SOX, PM, and CO2. The marginal external costs are given by: MCexternal (Q) = 0.1 + 0.5Q
b) Solve for the socially efficient quantity and price per gallon of gasoline.
c) What is the efficient per gallon tax on gasoline that will generate the answer to part (b)?
d) How much of the tax is paid by consumers? How much by producers? Why?
e) What is the welfare gain from internalizing the pollution externality?
f) If instead of per gallon gas tax, the government required an increase in the fuel efficiency of new cars sold would you expect to fully internalize the pollution externality? Why or why not?
|
How much output will each firm produce
: Suppose there are n identical firms in a market. Each firm's cost function is given by C = 648 + 8q2, where q is the amount that an individual firm produces. This means that an individual firm's marginal cost is given by MC = 16q. Also, the mar..
|
|
Regulated the workplace and required all jobs
: Where does the worker choose to work? Suppose the government regulated the workplace and required all jobs to have a risk factor of 1/5 (that is, all jobs become A jobs). What wage would the worker now need to earn in the A job to be equally happy..
|
|
Regulated the workplace and required all jobs
: Where does the worker choose to work? Suppose the government regulated the workplace and required all jobs to have a risk factor of 1/5 (that is, all jobs become A jobs). What wage would the worker now need to earn in the A job to be equally happy..
|
|
Write a speech on the benefits of social media marketing
: Write a speech on the topic benefits of social media marketing.
|
|
Marginal costs of gasoline consumption
: "Let the marginal benefits and marginal costs of gasoline consumption (where Q=gallons) be:
|
|
Analysis of risk and break-even analysis
: Analysis of Risk: risk analysis (business, financial, leverage), break-even analysis, results of sensitivity analysis (determine key value drivers) - The end result will be a nutrition bar of several variations that break into snack sized pieces y..
|
|
Find the inverse demand function
: a) Find the inverse demand function for your firm's product. b) Determine the profit-maximizing level of output and price. c) Calculate the firm's maximum profits.
|
|
Conduct critical and thorough internal analysis of coca-cola
: Conduct a critical and thorough internal analysis of the Coca-Cola Company, assessing as many of the company's key internal strengths and weaknesses as you can.
|
|
Annual savings turned out
: A $500,000 initial investment, annual savings of $92,500 for a 10-year period, a salvage value of $50,000, and a MARR of 10%. What would the annual worth be if the annual savings turned out to be actually 50% less? Enter only the signed number w..
|