What is the socially efficient level of output

Assignment Help Business Economics

Reference no: EM13984553

You are an industry analyst that specializes in an industry where the market inverse demand is P = 200 - 4Q. The external marginal cost of producing the product is MCExternal = 6Q, and the internal cost is MCInternal = 12Q.

a) What is the socially efficient level of output?

b) Given these costs and market demand, how much output would a competitive industry produce?

c) Given these costs and market demand, how much output would a monopolist produce?

d) Discuss actions the government might take to induce firms in this industry to produce the socially efficient level of output.

Explain in Detail your answers

Reference no: EM13984553

Questions Cloud

Contrasting views on shape of the aggregate supply curve : Explain why their contrasting views on the shape of the aggregate supply curve lead some economists to argue much more strongly for stabilization policies to fight unemployment and other economists to argue much more strongly for stabilization polici..

Write a letter to david carr of the new york times : Write a 2-3 page letter to David Carr of The New York Times stating your position on the changes at the newspaper (such as the rise of social media as sources, changing ownership, whether or not the newspaper is even necessary...)

Composition of code is in three groups : In the ________ the composition of code is in three groups of digits that are separated by hyphens, the hyphens serves to break the code into easy to handle group of digits.

Statements regarding costs under federal awards : Which of the following statements regarding costs under federal awards is not true?

What is the socially efficient level of output : You are an industry analyst that specializes in an industry where the market inverse demand is P = 200 - 4Q. The external marginal cost of producing the product is MCExternal = 6Q, and the internal cost is MCInternal = 12Q. What is the socially effic..

Similarities between the avocado and artichoke views of self : What are some of the differences/similarities between the avocado and artichoke views of the self?

Purchase order of items critical : ________clause should be inserted in the purchase order of items critical to project to induce supplier for early completion of the orders.

Provided china greater access to the market for exports : China's entry into the World Trade Organization in 2001 created more competition between local and foreign firms, and also provided China greater access to the market for exports. What implications do you think the elimination of the quota on rubber ..

Referees appear to be racially discriminatory : Suppose you start telling your friend about the Price and Wolfers finding that NBA referees appear to be racially discriminatory. Your friend looks at their data, and (correctly) finds that white referees call fewer fouls per 48 minutes on black play..

User Account

All Pages