2. Suppose a steel manufacturing industry has 12 firms. Each firm has the following private marginal cost function: MCi = 4Qi, i = 1,...,12 The market demand for steel is: Q = 50 – 0.5P 2a. 2b. Solve for the industry supply curve. Graph the industry supply curve and demand curve and find the equilibrium price and quantity of steel. Now suppose each steel manufacturing firm emits damaging air pollution. Total damages from pollution increase such that the marginal external cost from each firm's steel production is: MEC₁ =2Qi, i = 1,...,12 2c. What is the marginal social cost of steel production for each firm? Solve for the industry supply curve if each firm internalizes their external costs of production. 2d. Solve for the equilibrium price and quantities for the case where the marginal external costs are internalized by all firms. Graph the results. 2e. Using the results from parts 2a. and 2b., calculate the net welfare cost when firms do not internalize their marginal external costs.

Y6 Suppose that a market consists of 300 identical firms, all with the same cost curve: TC(4) = 0.1 + 150g?. The market demand is given by Qd(p) = 60 - p (a) What is the equilibrium price and quantity? (b) What quantity must each firm produce and sell at equilibrium? (c) Do firms make positive profits in the market equilibrium? (d) Calculate consumers' surplus, producers' surplus and total surplus.

A large share of the world supply of cocoa beans comes from Ghana and Ivory Coast. Suppose that the marginal cost of producing cocoa beans is constant at GHC1000 per bag and the demand for cocoa beans is described by the following schedule. Price (GHC) Quantity (bags) 5000 6000 7000 8000 9000 10000 11000 12000 8000 7000 6000 5000 4000 3000 2000 1000 a) If there were many suppliers of cocoa beans, what would be the price and quantity? b) If there were only one supplier of cocoa, what would be the price and quantity? c) At a meeting in October 2017 in Accra, the leaders of the two leading producers of cocoa beans discussed the possibility of cooperating to boost the price of cocoa. If Ghana and Ivory Coast formed a cartel, what would be the price and quantity? If the countries split the market evenly, what would be Ghana's production and profit? f) What would happen to Ghana's profit if it increased its production by 1000 cocoa while Ivory Coast stuck to the cartel agreement? g) Use your…

Suppose a firm A produces a product q, but also pollution x that affects a second firm B. Firm A is a competitive firm and faces an equilibrium price of £12 for its product. The cost function of firm A is . Firm B is a competitive firm and faces an equilibrium price of £10. Firm B’s cost function is . A. Compute the equilibrium prices and quantities and the profits of the two separate, competitive firms. Interpret the first order conditions. Explain.                                                                              b) Compute the social optimum, that is, the equilibrium prices, quantities, and profit when firm A and B are merged. Interpret the conditions and compare it to the solution in (a). Explain. c) Devise a quantity tax on product q for firm A in (a) such that the government can restore the social optimum in (b).

Consider the market for Atlantic salmon. Petuna, Tasmania’s smallest salmon farm, and Huon Aquaculture, a large corporate supplier, are both producers of Atlantic salmon. The marginal cost curves for both firms are shown in the graph below:        If the market price is $13 per kilo of salmon, how many kilos of salmon would Petuna supply? What about Huon Aquaculture? How many total kilos would they collectively supply? Is this allocation the most productively efficient way to produce this quantity of salmon? i will give thumbs up thanks

A computer hardware firm sells both laptop computers and printers. Through the magic oft focus groups, their pricing team determines that they have an equal number of three types of customers, and that these customers' reservation prices are as illustrated in the figure below. Laptop Printer Bundle Customer A Customer B Customer C $750 $1,000 $100 $150 $850 $1,150 $650 Se00 S50 Assume for simplicity the marginal cost of production for laptops and printers is zero. in total? If the firm were to charge only individual prices (not use the bundle price), what prices should it set for its laptops and printers to maximize profil? Assuming for simplicity that the firm has only one customers of each type, how much does it earm To maximize profit using individual prices, the firm should charge a price for laptops of p=0 and a price for printers of (Enter your responses as whole numbers.) In tum, profit isx=$. (Enter your response as a whole number.) After conducting a costly study, an outside…

How much profit is the typical firm making? at what equilibrium price are all economic profits eliminated? how many firms will be producing frisbees at long term price?

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2. You are the Southeastern Michigan regional manager at Coca-Cola, responsible forproduction and pricing in the Metro Detroit area. Your primary competitor is Pepsi. The marketresearch team at Coca-Cola is thinking about launching a new product, Orange Vanilla Coke, toboost the brand. The cost function to produce a 12-pack of 12 fl. oz. cans of Orange VanillaCoke is C(qcoke) = 0.25qcoke and the market research team has estimated inverse market demandfor a 12-pack of this new “pop” in Southeastern Michigan to be P = 10.25 – 0.00025Q. a. Assuming Pepsi decides not to produce a similar product, allowing Coca-Cola to maintainmonopoly power in the market for orange vanilla cola, what price and quantity will youchoose to maximize profit? How much profit does Coca-Cola earn?b. What price and quantity you would choose to maximize profit if Pepsi spies discover yourproduct before launch, allowing Pepsi to produce and launch an identical product at the sametime. For your answer, assume the cost…