2. The demand for education in the market is given by D (p) = 100,000 - p where D (p) is the number of degrees. (a) If the market is competitive where the cost to each provider of a degree is $10,000, then what is the equilibrium number of degrees and the equilibrium price? (b) Suppose that there is external benefit of $10,000 per degree. What is the efficient number of degrees? (c) ( Draw a diagram with relevant marginal values and marginal costs showing the competitive outcome, the efficient outcome, and the lost surplus from a competitive market. Label the relevant curves and the relevant outcomes.

2. The demand for education in the market is given by D (p) = 100,000 - p where D (p) is the number of degrees. (a) If the market is competitive where the cost to each provider of a degree is $10,000, then what is the equilibrium number of degrees and the equilibrium price? (b) Suppose that there is external benefit of $10,000 per degree. What is the efficient number of degrees? (c) ( Draw a diagram with relevant marginal values and marginal costs showing the competitive outcome, the efficient outcome, and the lost surplus from a competitive market. Label the relevant curves and the relevant outcomes.

ENGR.ECONOMIC ANALYSIS

14th Edition

ISBN:9780190931919

Author:NEWNAN

Publisher:NEWNAN

Chapter1: Making Economics Decisions

Section: Chapter Questions

Problem 1QTC

See similar textbooks

Related questions

Q: major league baseball plans to sell special commemorative jerseys for the world series. the…

A: C(x)= 10x2-680x-20,000 MLB plans to sell them for 120 dollars each

Q: i n 1 2 3 4 5 10% P/F 0.9091 0.8264 0.7513 06209 P/A 0.9091 2.4869 3.1699 3 7908 P/G 0 0.8264 2.3291…

A: Cumulative interest implies the total amount of interest that accrues over time on a principal sum…

Q: I am so confused, my computer stated that all three answers are incorrect. Can you assist so that I…

A: I'll try to put it simply the optimal pricing strategy. First we will find out optimal monopoly…

Q: PLS HELP ASAP ON BOTH

A: 2. The correct answer is c) bevel gauge.A bevel gauge is a tool used to measure and transfer angles,…

Q: A city centre tour guide currently charges $27 for a full day's tour. The average number of…

A: Price = $27 Daily customers = 32 Fall in customers for $1 price increase = 3

Q: The company that you manage has invested $5 million in developing a new product, but the development…

A: If it would cost $1 million to finish development and make the product, you should go ahead and do…

Q: A Cooling Tower initially costs P 18,023 and has a salvage value of P 897 at the end of its economic…

A: Answers The value of fixed assets decreases due to usage, passes of time, obsolete and accident.…

Q: I heard that t = 66 months, is this true or false?

A: Current value of Car = 55000 Depreciation per month = 1% Steven's bank current balance =…

Q: Please have the answers written to a formula bc I do not use excel to complete the calculations…

A: The term "maturity risk premium" (MRPs) describes receiving a higher return for keeping a securities…

Q: You have been asked to prepare a forecast for your company's product, bottled water. Discuss the…

A: Forecasting is a technique for predicting the future based on data and trend analysis. Companies…

Q: do fast.

A: To find the value of $x$ to the nearest one decimal place, we can use trigonometric ratios based on…

Q: None

A: Step 1: Step 2: Step 3: Step 4:

Q: What are the three specific desirable characteristics of an estimator?

A: Three specific desirable characteristics of an estimator are: Unbiasedness - An unbiased estimator…

Q: New ads have been proposed and cost the company $5000 to run in each time slot. If the extra sales…

A: To determine how many ads should be run, we need to find the number of ads that will maximize the…

Q: Daisy works for a candle manufacturer and has a great idea for a new product. She wants the candle…

A: The issue raised by Daisy's story has to do with product creation, pricing tactics, and possible…

Q: how much if a barrel of oil does costs Chevron to produce for sale in the crude oil market, without…

A: According to a 2022 report by Rystad Energy, the average cost of production for a barrel of oil for…

Q: What does it mean for U”<0?

A: Answer: Given, U''<0 To explain; the meaning of the negative second-order derivative of a…

Q: Carl is an insurance representative who attempts to sell home insurance to 140 customers per year.…

A: Step 1: Step 2: Step 3: Step 4:

Question

I need 100% accurate answer

2.
The demand for education in the market is given by D (p) = 100,000 p
where D (p) is the number of degrees.
(a)
If the market is competitive where the cost to each provider of a degree
is $10,000, then what is the equilibrium number of degrees and the equilibrium
price?
(b)
Suppose that there is external benefit of $10,000 per degree. What is the
efficient number of degrees?
(c) (
Draw a diagram with relevant marginal values and marginal costs
showing the competitive outcome, the efficient outcome, and the lost surplus from
a competitive market. Label the relevant curves and the relevant outcomes.

Expert Solution

This question has been solved!

Explore an expertly crafted, step-by-step solution for a thorough understanding of key concepts.

SEE SOLUTION Check out a sample Q&A here

Step 1: Introduction

VIEW

Step 2: Solution

VIEW

Solution

VIEW

Step by step

Solved in 3 steps with 2 images

SEE SOLUTION Check out a sample Q&A here

Knowledge Booster

Learn more about

Need a deep-dive on the concept behind this application? Look no further. Learn more about this topic, economics and related others by exploring similar questions and additional content below.

Similar questions

I need the answer to four, but it requires number 3.
I can not get 7.2, 7.8 or 8.3 when I do the calculations. How did you get them?
Your savings account balance at the end of May was $500. You made a $200 deposit on June 4 and withdrew $100 on June 25. Calculate your average (mean) daily balance for June.
Describe the various efficiencies that can be applied when we select an analysis period?
How is MC calculated? 300 for the first MC is incorrect.
The sum of the 2011 revenue and four times the 2008 revenue for a particular company is $3,489 4 million The difference between the 2011 and 2008 revenues is $145 9 million if the company's revenue between 2008 and 2011 is an increasing inear function, find the 2008 and 2011 revenues The 2008 revenue is $ million (Type an integer or a decimal)
what is the terminology for this definition below: Year serving as point of comparison for other years
The fractions make no sense
what is Operational definition Repeat Purchase for food customer?