. XY Pharmaceuticals company is a price taking firm which produces a single, liquid, drug 'painclear which it sell. at price = £300/ litre. Lach additional unit produced generates costs: the 1 litre adds £4 to costs, the second litre adas to to Tilm s costs, the third adas tlz, etc over all guantities. here are no costs it must pay when output is Zero 1. Create and explain a diagram which shows relevant costs, price, surplus going to XY, at the profit maximising position of the tirm explain how you ca culated that point). [15 % ] It is discovered that production of painclear damages groundwater quality - this affects just one party Greenview Nature Park (a park run by the local council which people can access, for free, for recreation). The value of the damage caused is £48 per litre of paint produced - so the pollution damage caused when output is 1 litre = f 48 the 2 nd litre causes another £48 of damage, so pollution damage caused when output is 2 lites = £96. This damage happens and is the same whenever XY produces, whatever the level of output ( same i it produces 1 litre of or 1 000 000 litres of painclear - each additional litre imposes an additional £48 of pollution costs). The drug has no side effects on consumers the clarifying information in red was added on 21/12/23 2. Create and explain a new diagram which shows relevant costs, price and levels of output it XY produced the optimal quantity of painclear from a societal perspective Assume XY and Greenview can negotiate. 3. Create and explain 2 new diagrams which show the positions which may result if negotiations go perfectly (from an economic perspective) if: Greenview has the Property rignts XY has the Property Rights [30 % 14 . What factors in the real world affect the likelihood that these outcomes will be achieved? [15 % ] 5. Will the public care as to which of them has the property rights - explain your answer [15 % ] [10% ] will be awarded for the quality of the writing and structure
. XY Pharmaceuticals company is a price taking firm which produces a single, liquid, drug 'painclear which it sell. at price = £300/ litre. Lach additional unit produced generates costs: the 1 litre adds £4 to costs, the second litre adas to to Tilm s costs, the third adas tlz, etc over all guantities. here are no costs it must pay when output is Zero 1. Create and explain a diagram which shows relevant costs, price, surplus going to XY, at the profit maximising position of the tirm explain how you ca culated that point). [15 % ] It is discovered that production of painclear damages groundwater quality - this affects just one party Greenview Nature Park (a park run by the local council which people can access, for free, for recreation). The value of the damage caused is £48 per litre of paint produced - so the pollution damage caused when output is 1 litre = f 48 the 2 nd litre causes another £48 of damage, so pollution damage caused when output is 2 lites = £96. This damage happens and is the same whenever XY produces, whatever the level of output ( same i it produces 1 litre of or 1 000 000 litres of painclear - each additional litre imposes an additional £48 of pollution costs). The drug has no side effects on consumers the clarifying information in red was added on 21/12/23 2. Create and explain a new diagram which shows relevant costs, price and levels of output it XY produced the optimal quantity of painclear from a societal perspective Assume XY and Greenview can negotiate. 3. Create and explain 2 new diagrams which show the positions which may result if negotiations go perfectly (from an economic perspective) if: Greenview has the Property rignts XY has the Property Rights [30 % 14 . What factors in the real world affect the likelihood that these outcomes will be achieved? [15 % ] 5. Will the public care as to which of them has the property rights - explain your answer [15 % ] [10% ] will be awarded for the quality of the writing and structure
Chapter1: Making Economics Decisions
Section: Chapter Questions
Problem 1QTC
Related questions
Question
![. XY Pharmaceuticals company is a price taking firm which produces a single, liquid, drug 'painclear which it sell. at
price = £300/ litre. Lach additional unit produced generates costs: the 1 litre adds £4 to costs, the second litre adas to
to Tilm s costs, the third adas tlz, etc over all guantities. here are no costs it must pay when output is Zero 1. Create and
explain a diagram which shows relevant costs, price, surplus going to XY, at the profit maximising position of the tirm
explain how you ca culated that point). [15 % ] It is discovered that production of painclear damages groundwater
quality - this affects just one party Greenview Nature Park (a park run by the local council which people can access, for
free, for recreation). The value of the damage caused is £48 per litre of paint produced - so the pollution damage
caused when output is 1 litre = f 48 the 2 nd litre causes another £48 of damage, so pollution damage caused when
output is 2 lites = £96. This damage happens and is the same whenever XY produces, whatever the level of output (
same i it produces 1 litre of or 1 000 000 litres of painclear - each additional litre imposes an additional £48 of pollution
costs). The drug has no side effects on consumers the clarifying information in red was added on 21/12/23 2. Create
and explain a new diagram which shows relevant costs, price and levels of output it XY produced the optimal quantity of
painclear from a societal perspective Assume XY and Greenview can negotiate. 3. Create and explain 2 new diagrams
which show the positions which may result if negotiations go perfectly (from an economic perspective) if: Greenview
has the Property rignts XY has the Property Rights [30 % 14 . What factors in the real world affect the likelihood that
these outcomes will be achieved? [15 % ] 5. Will the public care as to which of them has the property rights - explain
your answer [15 % ] [10% ] will be awarded for the quality of the writing and structure](/v2/_next/image?url=https%3A%2F%2Fcontent.bartleby.com%2Fqna-images%2Fquestion%2F80f4aa2a-6e1e-4191-8275-b1b1fc8fab64%2Fa944278d-6663-4d16-8be1-086403d56f71%2F3w23mu9_processed.png&w=3840&q=75)
Transcribed Image Text:. XY Pharmaceuticals company is a price taking firm which produces a single, liquid, drug 'painclear which it sell. at
price = £300/ litre. Lach additional unit produced generates costs: the 1 litre adds £4 to costs, the second litre adas to
to Tilm s costs, the third adas tlz, etc over all guantities. here are no costs it must pay when output is Zero 1. Create and
explain a diagram which shows relevant costs, price, surplus going to XY, at the profit maximising position of the tirm
explain how you ca culated that point). [15 % ] It is discovered that production of painclear damages groundwater
quality - this affects just one party Greenview Nature Park (a park run by the local council which people can access, for
free, for recreation). The value of the damage caused is £48 per litre of paint produced - so the pollution damage
caused when output is 1 litre = f 48 the 2 nd litre causes another £48 of damage, so pollution damage caused when
output is 2 lites = £96. This damage happens and is the same whenever XY produces, whatever the level of output (
same i it produces 1 litre of or 1 000 000 litres of painclear - each additional litre imposes an additional £48 of pollution
costs). The drug has no side effects on consumers the clarifying information in red was added on 21/12/23 2. Create
and explain a new diagram which shows relevant costs, price and levels of output it XY produced the optimal quantity of
painclear from a societal perspective Assume XY and Greenview can negotiate. 3. Create and explain 2 new diagrams
which show the positions which may result if negotiations go perfectly (from an economic perspective) if: Greenview
has the Property rignts XY has the Property Rights [30 % 14 . What factors in the real world affect the likelihood that
these outcomes will be achieved? [15 % ] 5. Will the public care as to which of them has the property rights - explain
your answer [15 % ] [10% ] will be awarded for the quality of the writing and structure
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