What is the efficient fee in dollars per unit of waste

Assignment Help Business Economics
Reference no: EM131164528

A steel factory has the right to discharge waste into a river. The waste reduces the number of fish, causing damage for fisheries. Let X denotes the quantity of waste dumped. The marginal damage, denoted MD, is given by the equation MD = 2 + 5Q. The marginal benefit (MB) of dumping waste is given by the equation MB = 34 - 3Q. (a) Calculate the efficient quantity of waste. (b) What is the efficient fee, in dollars per unit of waste, which would cause the firm to dump only an efficient quantity of waste? (c) What would be the quantity dumped if the firm did not care about the fishery?

Reference no: EM131164528

Questions Cloud

Describes the difference between the demand faced : Which of the following describes the difference between the demand faced by a firm and the demand faced by an industry? the demand facing individual firms tend to be more price-elastic than those for the entire industry.
Concept of healthcare price elasticity : What would you say to these stakeholders? Formulate your advice, drawing on course readings, other scholarly sources, and the concept of healthcare price elasticity. Be sure to explain and support your advice by citing sources and providing examples.
Demand curve for cruises is straight line : When the price of a cruise rises from $19,500 to 20,500, the quantity demanded decreases from $2,100 to 1,900 travelers. Use this information to calculate the chan in the total revenue of cruise providers is? ( how many?) If the demand curve for crui..
Achieve representational fluency in the study of functions : Explain how Task Rotation Strategy allows the teacher to pay attention to the each of the four types of mathematics learner. Which student abilities are involved when students achieve representational fluency in the study of functions.
What is the efficient fee in dollars per unit of waste : A steel factory has the right to discharge waste into a river. The waste reduces the number of fish, causing damage for fisheries. Let X denotes the quantity of waste dumped. The marginal damage, denoted MD, is given by the equation MD = 2 + 5Q. What..
Experiences negative externality from production process : Suppose the factory Afro-Puffs Inc. produces wigs. As a by-product of this wig production, they also produce dangerous emissions of toxic gases (as a result of the strong glue used to hold the hair in place). The De-Lite car factory, down the road, e..
Equilibrium quantity of public good that will be supplied : Suppose there is a public good that has market supply characterized by the equation X = (P/3) - (32/3). Suppose further that market demand for this good can be characterized by the equation X = 25 - P. Find the equilibrium quantity of the public good..
What was the amount of interest and principal paid : You just graduated from Engineering and have found a good job. However, fifteen (15) months ago you found yourself in a financial difficulty and had to borrow $3,000 from a high lending company (a “loan shark”) who charged 18%, compounded monthly for..
What is the efficient number of lighthouses : Suppose that there are only two fishermen, Zach and Jacob, who fish along a certain coast. They would each benefit if a lighthouse were built along the coast where they fish. The marginal cost of building each additional lighthouse is $150. The margi..

Reviews

Write a Review

Business Economics Questions & Answers

  Why might the price elasticities of demand differ

Your pharmacy provides services to Medicare and PPO patients. You estimate a price elasticity of demand of -2.2 for Medicare patients and -5.3 for PPO patients. Your marginal and average cost for dispensing a prescription is $2. What is the profit-ma..

  Assume no transactions to prevent exchange rate risk

Assume an American company sells $10 million in goods to a German firm. The American company will receive less than $10 million in revenues if (assume no transactions to prevent exchange rate risk):

  Difference between normative and positive economics

Explain the difference between normative and positive economics. Determine which of these statements are normative and which are positive and explain why you place them in the normative or positive category.

  Describe some of the personal and psychological factors

Describe some of the personal and psychological factors that may influence what consumers buy and when they buy it. Identify the ways in which business-to-business (B2B) markets differ from business-to-consumer (B2C) markets. cite sources

  How does imposing rent controls affect the number

Rent controls place price ceilings on rents at levels below market equilibrium rental rates for the stated purpose of making housing more affordable for low-income families. Using demand and supply analysis, answer the following questions:

  The total revenue functions for the firm

Q=55-0.5PGiven the firm’s demand function Q=55-0.5P (where P = price and Q = rate of output), and the total cost function TC=20+Q+0.2Q^2 where TC = total cost, determine a. The total revenue functions for the firm.

  Perspective on values makes sense

Talk about six economies of worth, or sets of values, that we prioritize differently. Although we may not always prioritize our values the same way in different situations, I'd like to think about how you would rank these six economies of worth for y..

  Opportunity cost of attending two-year graduate program

Zack quits his job at a consulting firm, which pays $40,000 a year, to enrol in a two-year graduate program. His annual school expenses are $30,000 for tuition, $2,000 for books, and $600 for food. What is his opportunity cost of attending the two-ye..

  Predict the primary manner in which

Determine two (2) likely factors that might have caused the change. Predict the primary manner in which this change would likely impact business operations in the new market environment.

  What is the motivation for a bond issuer to issue bonds

What is the motivation for a bond issuer to issue bonds in a foreign market?? What are the positive economic effects of these transactions for the issuer/investor’s home economy and for the world’s economy? Negative effects?

  Define and explain the money multiplier

Define and explain the money multiplier. Identify the change to the money supply in the following situation: The required reserve ratio is 12.5 percent and the Fed increases the monetary base by $100.

  Fed need to increase or decrease the supply of federal funds

Suppose that the demand for federal funds curve is such that the quantity of funds demanded changes by $160 billion for each 1 percent change in the federal funds interest rate. Also, assume that the current federal funds rate is at the 3 percent rat..

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