What is the socially efficient level of output

Assignment Help Microeconomics

Reference no: EM13697384

The external marginal cost of producing coal is MC external = 8Q while the internal marginal cost is MC internal = 6Q. The inverse demand for coal is given by P = 180 - 4Q.

What is the socially efficient level of output?

How much output would a competitive industry produce?

If the government taxed output at $2 per unit, what would a competitive industry produce?

Reference no: EM13697384

Questions Cloud

What should the bar do about its pricing : A bar offers female patrons a lower price for a drink than male patrons. The bar will maximize profits by selling a total of 200 drinks (a night). At the current prices, male customers buy 150 drinks, while female customers buy 50 drinks. At this all..

What is the firms current output level : At its current short-run level of production, a firm's average variable costs equal $15 per unit, and its average fixed costs equal $25 per unit. It's total costs at this production level equal $800.

Monopolistic competition is similar to perfect competition : Monopolistic competition is similar to perfect competition because:

What is the supply function for silk purses : Lady Wellesleigh makes silk purses out of sows’ ears. She is the only person in the world who knows how to do so. It takes one sow’s ear and 1 hour of her labor to make a silk purse. She can buy as many sows’ ears as she likes for $1 each.

What is the socially efficient level of output : The external marginal cost of producing coal is MC external = 8Q while the internal marginal cost is MC internal = 6Q. The inverse demand for coal is given by P = 180 - 4Q. What is the socially efficient level of output?

Primary concern of investment banks : Which of the following activities is NOT a primary concern of investment banks?

Consumer surplus via an optimal two-part pricing strategy : A local video store estimates their average customer's demand per year is Q = 7 - 2P, and knows the marginal cost of each rental is $0.5. How much should the store charge for an annual membership in order to extract the entire consumer surplus via an..

Why society has chosen the mixed economy : Why society has chosen the Mixed Economy. Write a short essay using complete sentences and proper grammar which: Gives two goals desired by society that the pure market economy is largely successful in reaching and explain why the market is able to a..

At the beginning of the most recent financial crisis : At the beginning of the most recent financial crisis, banks were hurt by all of the following EXCEPT

User Account

All Pages